Covivio Office Holding GmbH

Berlin

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.01.2023 bis zum 31.12.2023

Covivio S.A.

Metz/Frankreich

2023

Universal Registration Document
including the Annual Financial Report

This Universal Registration Document in pdf format is a reproduction of the official version of the Universal Registration Document drawn up in xhtml format and available on the website of the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) and the company's website.

This Universal Registration Document in French was filed on 19 March 2024 with the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) in its capacity competent authority under Regulation (EU) 2017/1129, without prior approval in accordance with Article 9 of the said regulation. The Universal Registration Document may be used for the purposes of a public offering of securities or the admission of securities to trading on a regulated market if it is supplemented by a note relating to the securities and, if applicable, a summary and all amendments to the Universal Registration Document. The whole has been approved by the AMF in accordance with Regulation (EU) 2017/1129.

Covivio

Société Anonyme (French public limited company) with a Board of Directors and share capital of €303,019,167

18 Avenue François Mitterrand 57000 Metz

RCS Metz 364 800 060

Centrality

Our ambition:
to invent the city of tomorrow

For more than 20 years, Covivio has been helping to shape major European cities and create the city of tomorrow by designing offices, hotels and housing for new ways of living, working and travelling.

With a €23.1 bn portfolio ever-more focused on major European cities, Covivio is where workers, travellers and residents want to be and meet. By prioritising the reconstruction of the city within the city, the Group offers high-performance, sustainable, mixed-use and innovative projects that limit urban sprawl.

Supporting growth of the Europe's leading capitals

In Paris, Berlin, Milan, as well as Bordeaux and Dusseldorf, Covivio creates, transforms and energises cities while meeting the climate challenge. Connectivity, flexibility, well-being, diversity, greening: all aspects developed by Covivio for its projects. These are all assets that define the attractive cities of tomorrow.

Our Purpose - "to build sustainable relationships and well-being" - puts people at the heart of the city, instils a long-term commitment into our business and constitutes the backbone of our development. It leads us to make concrete and ambitious commitments to all our stakeholders:

A DIVERSIFIED EUROPEAN PORTFOLIO THAT COMBINES USES

GLOBAL BREAKDOWN OF COVIVIO'S PORTFOLIO

Germany: 43%

France: 33%

Italy: 17%

Other: 6%

A POPULAR PORTFOLIO

96.7% occupancy rate

AND AVERAGE FIRM LEASE TERM OF 7 YEARS

Winner of 2 Stream Building awards in 2023

―	ULI EUROPE AWARDS FOR EXCELLENCE 2023
―	THE PLAN AWARD 2023

94% of our portfolio of offices, housing and hotels, is in the heart of the city

Hospitality

Supporting changing uses and experience seeking

As an investor, developer, manager and service creator, Covivio, together with the users, invents variable-use spaces to support businesses, hotel brands and regions as they strive to attract customers, transform themselves and perform responsibly.

Offering new forms of workspaces, housing or leisure activities, to meet the new expectations of our customers, users and local authorities: this is how we are helping to cultivate cities that are more relational, attractive and sustainable.

By offering a high level of well-being in each of our buildings, Covivio enriches relationships between people and thus contributes to the fulfilment of each individual, the effectiveness of organisations and the sustainability of development methods.

Covivio, major player in the hotel industry

Covivio is contributing to the renewal of the hotel offer in Europe by identifying the most innovative concepts and striking partnerships with lifestyle retailers,

With a portfolio of 313 hotels in 12 countries valued at €6.4 billion at the end of 2023, Covivio, through its subsidiary Covivio Hotels, is the leading real estate partner for hotel operators in Europe (AccorInvest, IHG, NH Hotel Group, B&B HOTELS, Meininger Hotels, Radisson Hotel Group, etc.).

Covivio works alongside retailers in the most dynamic cities, in operating properties or development, supporting their lease, property and development projects.

With 91.2% of its hotel portfolio environmentally certified (target of 100% by 2025), Covivio is leading its hotel partners in a shared green approach to cutting their carbon footprint.

Strong customer satisfaction

Office, residential or hotels: everyone wants an enriching high-quality experience. This is why Covivio is bringing together its expertise to rethink its buildings and user journeys. In order to maximise the potential and comfort of our spaces and ensure the well-being and satisfaction of our customers, we involve them from the design stage of projects and regularly interview them to collect their feedback.

3.9/5

Overall satisfaction of office tenants

Kingsley study 2023-2024

8.9/10

Booking.com users rate the location of Covivio-owned hotels as satisfactory

German Residential:

Covivio rated

"Fairest Landlord"

by the economics magazine

FOCUS- MONEY

for the 6 ^th consecutive year

Sustainability

Address major CSR issues for a positive impact

Mobility, connectivity, sustainable performance, openness to the neighbourhood, regeneration, biodiversity and cultural initiative are all components of a Covivio real estate project, which mobilises all its partners to design high-performance cityscapes tailored to their environment. Cities can draw on our multi-sector expertise and European scale. We act as a long-term partner to invent a smart and virtuous city where people want to live.

Corporate social responsibility (CSR), an integral part of Covivio's DNA, has been the subject of a detailed action plan for nearly fifteen years. The latter covers all of the Group's activities in Europe and has been enhanced over the years. Faced with increasingly crucial economic, social, societal and environmental challenges, Covivio has accelerated its transition to further integrate climate issues into each of its business lines.

The Group has set itself ambitious climate targets and is aiming to cut its greenhouse gas emissions 40% by 2030 compared to 2010. At the same time, Covivio proposed a "Say On Climate" resolution to its shareholders at its General Meeting in April 2023. This resolution, which takes into account the current climate plan for 2030, was approved by more than 94% of shareholders. Covivio joins the fifteen listed companies in Europe that have introduced such a resolution.

95.3% of the portfolio has environmental certification

97.8% of the portfolio is within a five-minute walk of public transport

3.8% of the payroll was invested in training in France

50% 50% women and men permanent employees in Europe

€1.7 million budget for the Covivio Foundation in 2020-2024

More than 20 projects and associations supported by the Covivio Foundation in France, Germany and Italy

Covivio, an attentive and committed company

As a committed company aware of its challenges, Covivio is engaging in an open and transparent dialogue with all its stakeholders.

Every two years, Covivio carries out an internal survey to assess the state of mind of its teams. The 2023 results reinforce the Company's strong internal culture at the European level.

―	85% of employees are satisfied with their employment (12 points above the Kantar benchmark)
―	79% say they would recommend Covivio to their friends and acquaintances (5 points above the Kantar benchmark)
―	94% are optimistic on the future of the company
―	77% are proud to work for Covivio and willingly talk about it in social circles (5 points above the Kantar benchmark)

At SIMI 2023, Covivio received the "Sponsorship & Solidarity in the City" award in the "Societal commitment" category. The jury also voted to give it the "Sponsorship and solidarity in the city" (Coup de Coeur) prize. These awards, which recognise solidarity initiatives by real estate companies, highlight the work done by the Covivio Foundation, which since 2020 has been coordinating the company's European sponsorship initiatives to support equal opportunities, whether through financial, skills or in-kind sponsorship.

1 Activity in 2023

1.1 2023 annual results: ahead of targets and continued growth in recurring earnings

"In a real estate market impacted by rising interest rates, Covivio has adapted quickly, notably through €720 million in new disposal agreements. Meanwhile, recurring net income rose, driven by asset management transactions and a +6.4% increase in like-for-like revenues. In 2024, we will maintain our financial discipline while pursuing growth in recurring results."

Christophe Kullmann, Covivio Chief Executive Officer

Strong operational performances

―	Hotels: negotiations with AccorInvest for a value-creating swap to consolidate OpCos and PropCos
―	Offices: almost 131,000 m ² let or renewed and occupancy increased to 94.5%
―	Residential: accelerating rental reversion of +21% (+31% in Berlin)
―	Occupancy rate (96.7%) and average firm lease duration (7 years) maintained at high levels

6.4% growth in like-for-like revenues

―	Consolidated revenues of €1 billion (€648 million Group share), +2.4% on a reported basis and +6.4% like-for-like
―	Offices: like-for-like rental growth of +5.2%
―	Germany Residential: acceleration in like-for-like rental growth to +3.9% (vs. +3.1% in 2022)
―	Hotels: like-for-like growth of +12.7% (+9% on fixed rents and +19% on variable revenues)

A quality and stronger balance sheet

―	Ahead of disposal target: €720 million in new disposal agreements in 2023
―	Net debt reduced by almost €700 million
―	Liquidity doubled to €2.4 billion, covering debt expiries until Q1 2026
―	LTV kept under control at 40.8%, despite a -10% decline in like-for-like values

Recurring net income up +1% in 2023 despite deleveraging

―	Recurring net income (adjusted EPRA Earnings ⁽¹⁾ ) up +1% at €435 million (€4.47 per share) vs. first guidance of €410 million
―	EPRA NTA (net tangible assets) down by -21% year-on-year to €84.1 per share, impacted by property values

ESG strategy: new progress in indicators, customer satisfaction and ratings

―	95.3% of our portfolio is certified, with 67% of the office portfolio certified HQE/BREEAM Very Good or above
―	Increase in the proportion of debt linked to ESG objectives to 57% from 38% at end-2022
―	Strategy acclaimed by our clients and praised by agencies, with our CDP rating upgraded to "A" in February 2024

2024 outlook

―	Maintain financial discipline: €580 million disposal target and proposed dividend of €3.30 per share for 2023, with option for payment in shares
―	Unlocking of growth potential through indexation, reversion and asset management transactions (including the expected finalisation of the asset swap with AccorInvest in the second half)
―	2024 recurring net income (adjusted EPRA Earnings) guidance of around €440 million, slightly up while pursuing deleveraging
―	Target to return to a 2024 full cash dividend with a payout ratio above 80%.

⁽¹⁾ Adjusted EPRA Earnings and EPRA NTA, NDV and NRV are Alternative Performance Indicators as defined by the AMF and are detailed in Sections 3 Financial information, 5. EPRA reporting and 7. Glossary of this document. The audit procedures on the consolidated financial statements have bee completed. The certification report will be issued after the specific verifications.

Main operational and financial KPIs

P&L, In € million, Group share	2022	2023	Change	Change Like-for-like
Occupancy rate (%)	96.6%	96.7%	+0.1pt
Revenue	633.0	648.0	+2.4%	+6.4%
Current operating income	499.5	506.8	+1.5%
Recurring net result ( ^*)	430.2	435.4	+1.2%
Recurring net result ( ^*) per share (€)	4.58	4.47	-2.4%
Accounting net result	620.7	-1,418.8	n.a.

Balance sheet, In € million, Group share	2022	2023	Change	Change Like-for-like
Asset value	17,395	15,080	-13.3%	-10.2%
Net debt	7,581	6,925	-8.7%
Net available liquidity	1,185	2,406	x2
LTV including duties (%)	39.5%	40.8%	+1.3pt
ICR (x)	6.9x	6.4x	-0.5x
Net debt/EBITDA	14.5x	12.8x	-1.7x
EPRA NTA	10,044	8,470	-15.7%
EPRA NTA per share (€)	106.4	84.1	-21.0%

ESG	2022	2023	Change
Assets with certification	93.0%	95.3%	+2 pts
of which offices 'Very good' or above	63.1%	67.2%	+4 pts
Debt linked with ESG KPIs	38.0%	57.0%	+19 pts

^* Adjusted EPRA Earnings

1.1.1 Covivio: a diversified and continuously improving portfolio

Covivio holds assets worth €23.1 billion (Group share €15.1 billion) in Europe, which it manages in accordance with three strategic pillars :

1. Central locations in European capitals and the main business and leisure hubs, notably Paris, Berlin and Milan. As a result, 94% of its assets are located in central locations ⁽¹⁾ , while 99% are within a five-minute walk of public transport

2. An innovative, scalable hospitality approach inspired by hotel expertise to support the transformation of cities and meet changing user expectations. This is reflected in a strengthened operator approach, a bold service policy and customer relationship, alongside a strong flexible offer.

3. Sustainable development, where Covivio acts as an operator committed to climate transition to create a positive and lasting impact on cities. This objective is illustrated by a bold carbon trajectory (40% reduction in emissions between 2010 and 2030) that has been praised by the main rating agencies.

The portfolio breaks down as follows: 52% (down 3 percentage points year on year) offices in France, Italy and Germany, of which 69% in city centres and 25% in the Major Business Hubs; 31% (up 1 pp) residential property, mainly in Berlin and large cities in North Rhine-Westphalia; and 17% (up 2 pp) hotels in major European tourist destinations (Paris, Berlin, Rome, Madrid, Barcelona, London, etc.), leased to or managed by leading operators, including Accor, IHG, Marriott, B&B, NH Hotel Group, etc.

⁽¹⁾ Offices: city centres of large European cities (Paris, Berlin, Milan, etc) and main business districts; Hotels: top European tourist destinations; Residential: Berlin, Dresden, Leipzig, Hamburg and large cities in North Rhine-Westphalia

1.1.2 Strong operational performances

1.1.2.1 Hotels: major new operations in a buoyant hotel market

Hotel performances remained highly dynamic in 2023. On average in Europe, RevPAR was +16% higher than in 2019 (and +18% higher than in 2022), driven by a +23% increase in average daily rates (ADR), while occupancy improved (up 5.1 pp vs 2022; down 3.6 pp vs 2019). Covivio's main geographies outperformed, with RevPAR growth of +32% in Italy, +22% in France, +20% in the United Kingdom and +18% in Spain.

In this context, Covivio continued its asset and brand management strategy to optimise its profitability and guarantee a hotel offer increasingly aligned with user expectations.

In November 2023, the Group entered into exclusive negotiations with AccorInvest with a view to consolidating their hotel properties and business assets. Through its subsidiary Covivio Hotels ⁽¹⁾ , Covivio owns 54 hotels that are let to AccorInvest under long-term variable rent leases based on revenues. AccorInvest owns the business assets of these hotels and has signed long-term management contracts with the Accor Group. The consolidation would take the form of an exchange of business assets currently held by AccorInvest for hotel properties owned by Covivio. Following this transaction, Covivio would own 24 hotel operating properties and AccorInvest would own 10.

The agreed value of the properties transferred to AccorInvest is approximately €92 million ⁽²⁾ (5% yield) and the agreed value of the business assets acquired by Covivio is approximately €114 million ⁽³⁾ (12% yield). The transaction, which will be accretive for Covivio from the first year (€9 million in additional revenues for a cash outflow of €22 million, Group share), will also enable the performance of these hotels to be optimised over time. Highly profitable Capex programmes (returns above +20%) are therefore expected, offering the prospect of earnings growth and value creation.

Asset management momentum also continued in other parts of the portfolio:

―

In the fixed-rent portfolio, Covivio signed new 15-year leases with Melia on 3 hotels in Spain (Barcelona, Valencia and Malaga) with an increase in fixed rents of around +30% and a return on investment (€15 million at 100%, €6 million Group share) of around 9%. In the second half, a 9-year lease extension was also signed with NH Hotel Group for a hotel in Madrid, with a +15% increase in rent;

―

Capex programmes totalling almost €70 million at 100% (€30 million Group share) have been launched for properties owned by the Group, with a target return of over 15%. During the year, work was carried out at the Westin Grand Berlin to renovate the communal areas (lobby, bar, restaurant, meeting rooms) and at two hotels in Bruges to renovate rooms and communal areas, create management synergies and improve energy performances.

1.1.2.2 Offices: strong letting momentum and greater centrality

In a polarised rental market where demand is concentrated on the most central buildings offering the best environmental and service performance (80% of demand in Milan is on Grade A buildings), Covivio is reaping the rewards of its upscale positioning. Nearly 131,000 m ² of new lettings and renewals were signed in 2023, including 40,700 m ² in the fourth quarter alone. The occupancy rate, which had fallen to 92.2% at the end of March 2023 following two property deliveries and the departure of a tenant, has since recovered strongly, gaining +230 bps to reach 94.5% at the end of the year (+10 bps vs. 2022).

These successes are illustrated by the acceleration in the letting of recently delivered buildings. This is the case for So Pop in Paris/Saint-Ouen, with 11,600 m ² let, bringing the occupancy rate from 36% at end 2022 to 71% today. Leases for 11,700 m ² have also been signed for Maslö in Levallois-Perret, which is now 87% let (vs. 28% end-2022). Covivio has also let 7,700 m ² in the Urban Garden building in Issy-les-Moulineaux, which was vacated in Q1 2023 and is already 70% re-let. In Châtillon, 2,450 m ² have been let in the IRO building, bringing the occupancy rate to 64% (vs 57% at end 2022), while 5,800 m ² have been let in the CB21 tower in La Défense, which is now fully let (vs 93% at end 2022). In Germany, 9,200 m ² have been let in Zeughaus building in Hamburg, now let at 96% (vs 82% end-2022).

Meanwhile, Covivio has continued to take advantage of high rental reversion potential on its city centre properties, at +12% on average in 2023, including in Lyon (+14% in Silex2 for 2,300 m ² ) and Milan (+23% for a total of 4,800 m ² in the Via Messina and Via Amedei buildings).

Rental momentum is buoyant in France and Italy (84% of the office portfolio). In Germany, first letting successes were recorded in 2023: the 16,488 m ² of new lettings and 47,426 m ² of lease renewals helped to increase the occupancy rate by +1.3 percentage points and capture positive rental reversion of +5%. However, the occupancy rate, currently 86.4%, remains impacted by the economic recession and 18% non-core asset segment. In order to accelerate performances improvement, a new asset management team has been appointed, led by Alexei Dal Pastro, CEO Italy of Covivio, now also in charge of German offices. Building on the success of the portfolio repositioning in Italy, Alexei Dal Pastro will bring his in-depth product knowledge and proven management experience.

Finally, Covivio continues to refocus and extract value from its assets. Two former call centers vacated by Orange are to be redeveloped, with total capex of €135 million for an average marginal return of 6.5%: Grands Boulevards (7,500 m ² , delivery 2027) and Monceau (11,200 m ² , delivery 2025). Both projects are located in the Paris CBD, where there is a shortage of quality office space, with a vacancy rate of 2.7% at end 2023 and prime rents of €1,070/m ² , up +7% year on year.

⁽¹⁾ 43.9% held and controlled by Covivio

⁽²⁾ Excluding transfer taxes, Covivio Group share; €210 million Covivio Hotels Group share

⁽³⁾ Including transfer taxes, Covivio Group share; €260 million Covivio Hotels Group share

1.1.2.3 Germany Residential: rising portfolio quality and value extraction amid ongoing housing shortage

The imbalance between supply and demand for residential property widened further in 2023. The population has risen again to over 84 million, while new construction and building permits continued to fall, well short of the government's target of 400,000 new homes a year. Berlin, for example, is experiencing an acute housing shortage and market rents rose sharply again over the previous year, up 6% for existing flats (to €12.9 per m ² ) and 9% for new flats (to €19.4 per m ² ).

Against this backdrop, Covivio continued to carry out asset management transactions during the year:

―	Capturing rental reversion: the re-letting of around 3,300 leases resulted in positive rental reversion averaging 21% in 2023, and 31% in Berlin;
―	Continuing to invest in modernisation programmes to improve the quality of the portfolio and reduce energy consumption. €78 million (Group share €50 million) was invested in 2023, with a return of between 5% and 10%;
―	Adding value. Covivio delivered over 227 new housing units (at a cost of €66 million; Group share €44 million) on lands adjoining its buildings or through rooftop extensions. Located in Berlin, these projects have an average rental yield of 5.0% and an average selling price 23% above appraisal values (average sale price €5,100 per m ² ). The Group also continued its unit sales programme, with almost 128 units sold for €53 million (Group share €35 million) at an average price of €5,200 per m ² , 46% above appraisal values.

1.1.3 A quality and stronger balance sheet

1.1.3.1 Ahead of disposal program: €720 million new disposal agreements signed in 2023

In a sluggish investment market, Covivio signed disposal commitments totalling €900 million at 100% (Group share €720 million), at an average of 7.5% below end-2022 appraisal values and an average yield of 4.2%. Covivio is thus ahead of its €1.5Bn disposal program by end-2024, communicated in December 2022, with roughly €920M (61%) already secured.

Most disposals (77%; Group share €551 million) were office assets, with the aim of rebalancing the portfolio and crystallising value. Covivio notably sold the Anjou building for a yield of 3.5%. An office complex on the outskirts of Montpellier was sold for €78 million, representing a yield of 6.6%. Covivio has also signed a preliminary sale agreement on a vacated non-core office building in Charenton, for €49 million.

In Germany Residential, the quality of the portfolio enabled us to secure €80 million (€120 million at 100%) in disposal agreements, mainly in Berlin, at an average margin of 16% above appraisal values: €35 million (€53 million at 100%) in unit sales (46% above appraisal values) and €44 million (€67 million at 100%) for four properties sold as a block (in line with 2022 appraisal values).

In hotels, €65 million (€152 million at 100%) of disposals were signed, mainly involving non-core assets: 10 budget and mid-range hotels in France and 2 business hotels in Spain, +2% above end-2022 appraisal values.

Finally, Covivio streamlined its non-core portfolio by signing preliminary sale agreements for €24 million (€54 million at 100%) of retail assets.

1.1.3.2 Liquidity doubled, covering debt payments until Q1 2026

In 2023, Covivio secured more than €1.9 billion in financing or refinancing (Group share €1.7 billion), 86% of which was ESG-related, with an average maturity of 7 years. With its diversified debt, Covivio was active on both banking and bond markets.

It secured €735 million in ESG-compliant corporate credit facilities with an average maturity of over 6 years, plus €495 million in mortgage financing. On the bond market, besides increasing two existing issuances by €99 million each, Covivio issued in November 2023 a €500 million green bond maturing in 2032, at a spread of 168 bps. The issue was largely swapped into floating rates, to take advantage of the Group's robust hedging position, and has contributed towards extending the Group's debt maturity.

As a result of our deleveraging and financing) efforts, the Group's net available cash doubled over the year to €2.4 billion at the end of 2023. This liquidity will be complemented by nearly €300 million (Group share) under preliminary sale agreements to be received in the coming months.

1.1.3.3 Solid debt indicators

Covivio's sound balance sheet is reflected in a BBB+ rating and stable outlook from S&P. Disposals during the year helped reduce net debt by almost €700 million year on year to €6.9 billion. This deleveraging enabled to contain the loan-to-value ratio (LTV) at 40.8%, despite the decline in appraisal values. The net debt to EBITDA ratio fell sharply to 12.8x (vs 14.5x at end-2022), while the interest coverage ratio (ICR) remained high at 6.4x.

Debt has an average maturity of 4.9 years (vs 4.8 years at end-2022) and is largely protected against rising interest rates: hedging ratio of 92% and average hedging instrument maturity of 5.9 years. As such, despite the spike in market interest rates, the average interest rate of Covivio's debt remained under control at 1.50%, vs 1.24% at end-2022.

1.1.4 Revenues up +6.4% on a like-for-like basis

2023, in € million	Revenues 2022 Group share	Revenues 2023 100%	Revenues 2023 Group share	% change current scope Group share	% like-for-like change Group share	Occupancy rate %
Offices	330.9	385.1	320.3	-3.2%	+5.2%	94.5%
Germany Residential	176.6	286.0	185.1	+4.8%	+3.9%	99.1%
Hotels	123.7	333.4	139.9	+13.1%	+12.7%	100.0%
Non strategic	1.9	6.3	2.8	+49.4%	-16.6%	100.0%
TOTAL	633.0	1,010.8	648.0	+2.4%	+6.4%	96.7%

2023, in € million	Firm lease duration in years
Offices	5.4
Germany Residential	n.a.
Hotels	12.2
Non strategic	7.4
TOTAL	7.0

In 2023, rental income increased to €1,011 million (€648 million Group share), up +2% year on year on a reported basis: the decline in office income due to disposals was more than offset by the acceleration in indexation, the recovery of the hotel business and solid growth in Germany Residential. On a like-for-like basis, revenues grew by +6.4%, driven by indexation (3.5 pp), higher rents on re-lettings and lease renewals (0.6 pp) and variable hotel revenues (2.3 pp).

In offices, rental income fell -3.2% following asset disposals in 2022 and 2023, but was up +5.2%on a like-for-like basis, boosted by indexation and dynamic letting activity in all geographies: +4.0% in France, +6.4% in Italy and +6.5% in Germany.

Hotel revenues continued to benefit from strong business in 2023, with like-for-like growth of +12.7%. This performance is based mainly on the continued rebound of variable revenue (43% of the hotel portfolio) comprising variable rents with AccorInvest (+19%, driven by the solid performance of the Paris assets) and revenue from operating properties (+19% as well, marked by strong growth in France and gradual recovery in Germany). On assets under fixed leases (57% of the hotel portfolio), like-for-like rents also increased by 9%, driven by indexation (+3.1%), asset management operations (+5.7%).

In Germany Residential, like-for-like rental growth accelerated to +3.9% in 2023 (vs +3.1% in 2022), across all geographies: Hamburg (+4.4%), Berlin (+4.0%), North Rhine-Westphalia (+3.9%), and Dresden and Leipzig (+2.9%). This increase is attributable to indexation (1.7 pp), home modernization programmes (1.3 pp) and re-lettings with a high reversion rate (1 pp). The occupancy rate remains at 99.1%, reflecting the quality and attractiveness of the portfolio, which is located mainly in city centres.

The average portfolio occupancy rate remains high at 96.7% (vs. 96.6% end-2022), in line with the 10-year average, while the average firm lease duration is almost 7 years.

1.1.5 Asset values were down -10% year on year in a slowing market

Faced with the new interest rate environment, the property investment market slowed across most asset classes in 2023, with transactions mainly being carried out by equity investors and end users. According to CBRE figures, volumes across all asset classes were down 47% at €163 billion in Europe in 2023. The sharp rise in capitalisation rates has materialised as 2023 progressed, allowing the property risk premium to return close to its 20-year average (170 bp). In the Paris CBD, the prime office yield is 100 bp higher than a year ago at 4.25%, while the risk premium over the 10-year OAT French government bond is close to 155 bp.

Against this backdrop, Covivio's asset values contracted by 10.2% on a like-for-like basis. At the end of 2023, the portfolio was valued at €23.1 billion at 100% (Group share €15.1 billion)

In € million, Excluding transfer taxes	2022 values Group share	2022 values at 100%	2023 values Group share	Like-for-like change 12 months	Yield 2022	Yield 2023
Offices	9,508	9,446	7,847	-11.7%	4.8%	5.5%
German Residential	5,238	7,212	4,672	-10.8%	3.5%	4.1%
Hotels	2,622	6,376	2,535	-3.9%	5.0%	5.9%
Strategic Total	17,368	23,035	15,054	-10.2%	4.4%	5.1%
Non-strategic	27	54	26	-3.1%	6.3%	n.a
TOTAL	17,395	23,089	15,080	-10.2%	4.4%	5.1%

In € million, Excluding transfer taxes	% of portfolio
Offices	52%
German Residential	31%
Hotels	17%
Strategic Total	100%
Non-strategic	0%
TOTAL	100%

Office property values fell by -11.7% on a like-for-like basis, with wide variations depending on asset centrality. City centre assets, which represent 69% of the portfolio, fell by 8% and now yield 4.8%. Assets located in the heart of the major business hubs fell by 18% and now yield 6.5%. Finally, the non-core category (6% of office assets), located on city outskirts and directly affected by structural changes in working patterns, recorded the largest fall in value (-21%).

Germany Residential sales were down -10.8% on a like-for-like basis, with a decelerated decline in values in the second half (-7.3% in the first half and -3.7% in the second). The average value of residential assets is €2,461 per m ² , with €3,052 per m ² in Berlin and €1,826 per m ² in North Rhine-Westphalia, and the average yield has risen 60 bp year on year to 4.1%. Assets are valued at their block value. 48% of the portfolio, worth €2.2 billion, is already co-owned, particularly in Berlin (68%; €1.8 billion), where the unit sale value is 52% above the block value.

In hotels, the portfolio declined by -3.9% year on year on a like-for-like basis, with a solid operating performance largely offsetting the rise in yields (+50 bps year on year). Operating properties outperformed slightly, down -3.7% year-on-year, compared with -4.0% for lease assets. The portfolio has an average yield of 5.9%, with a high risk premium (+300 bps over OAT).

At the end of 2023, the average yield on Covivio's assets was 5.1%, up 70 bps on the previous year.

1.1.6 Recurring net income growth while accelerating deleveraging

1.1.6.1 Recurring net income of €435 million, up 1% year on year

Despite the disposal programme and the increase in the average cost of debt, the strong operating performance and lower operating costs enabled recurring net income (adjusted EPRA Earnings) to increase by 1.2% year on year to €435.4 million (-2.5% to €4.47 per share due to the increase in the average number of shares). This result is 6% above the initial guidance (€410 million) and 4% higher than the revised guidance (€420 million).

Covivio's net income totalled -€1.4 billion, impacted by the decline in values.

1.1.6.2 EPRA NTA was €84.1 per share, down 21% year on year

Adjustments to asset values are reflected in the change in net tangible asset value (EPRA NTA), which was down 21% year on year at €84.1 per share (or €8,470 million). Net disposal Value (EPRA NDV) was down 23% at €83.4 per share (or €8,401 million). Lastly, EPRA NRV (net reinstatement value) was €9,327 million and €92.6 per share.

1.1.7 ESG: new progress in indicators, customer satisfaction and ratings

1.1.7.1 Steady growth to 95.3% certified assets

Covivio has continued to increase the certification rate of its portfolio: the proportion of assets with HQE, BREEAM, LEED or equivalent certification, in operation and/or under construction, now stands at 95.3% (up +2pp vs 2022).

In addition, the proportion of office buildings with the highest levels of certification (Very Good and above) stands at 67% (up 4 percentage points vs. 2022).

This strategy of environmental enhancement on the entire portfolio is actively contributing to the achievement of the Group's ESG objectives, in particular its commitment to reduce its greenhouse gas emissions by 40% between 2010 and 2030 (covering Scopes 1, 2 and 3, all activities in Europe and the entire life cycle of the assets: materials, construction, refurbishment and operation).

1.1.7.2 Further improvement in customer ratings

Keen to uphold its customer culture and continuously improve its offers, Covivio regularly conducts independent satisfaction surveys. The 2023 results are again very positive. In offices, the Kingsley Survey of 270 end users in France, Germany and Italy revealed an overall satisfaction rating of 3.9/5 (vs a benchmark of 3.6) and a property management satisfaction rating of 4/5 (vs a benchmark of 3.5).

For the sixth year running, Covivio has been awarded a Very Good rating for residential property in Germany by Focus Money magazine, following its Fairest Landlord 2024 study. The Group was one of only four companies to achieve a Very Good rating in all six categories of the study.

In hotels, the average booking.com location grade of our hotels increased by 0.1pt over the year to 8.9/10.

1.1.7.3 Agency rating upgrades

In early February 2024, Covivio was once again recognised by the Carbon Disclosure Project (CDP) for its leadership in climate change transparency and performance, achieving an "A" rating, the highest possible. Covivio is one of a select group of companies (1.6%) to have been awarded an "A" rating out of more than 20,000 companies assessed.

In 2023, Covivio also received higher scores from GRESB, which evaluates the ESG policies, action plans and performance of over 1,500 companies operating in the construction and real estate sectors worldwide. Covivio gained 2 points, achieving a score of 90/100 in the Operating Assets category, supported notably by a maximum score of 100% in the Management section and 97/100 in the Development section. The Group has thus retained its 5-star status.

Portfolio Environmental certification rate (%)

1.1.8 2024 outlook

In a challenging 2023 real estate market, Covivio is ahead of targets. Balance sheet has been strengthened and strong operational performance has enabled a slight growth in net recurring result, proving the relevance of the Group's positioning and strategy. In 2024, in a backdrop of expected interest rates decline in Europe and rebuilt risk premium, Covivio is preparing for the rebound. Thus, the Group sets two main targets for 2024: maintain financial discipline and pursue growth in net recurring result.

1.1.8.1 Maintain financial discipline

1.1.8.1.1 Proposed dividend of €3.30 per share, with the option of payment in shares

In this context, Covivio will propose to the Annual General Meeting on 17 April 2024 to pay a dividend of €3.30 per share (vs. €3.75 in 2023), with the option of payment in shares. Most of the institutional shareholders on Covivio's Board of Directors (representing 43% of the capital) have already agreed to opt for the dividend payment in shares. These decisions will enable to keep between €185 million and €375 million.

1.1.8.1.2 Disposal target of €580 million by 2024

Covivio aims to dispose of €1.5 billion in assets between December 2022 and the end of 2024.

At the end of 2023, €920 million in disposal agreements had been signed, thanks to the diversity and quality of our portfolio, which allows us to target a broad spectrum of potential investors: institutional investors, end users, private individuals and hotel operators.

In 2024, Covivio now aims to finalise its disposal plan, with a target of €580 million, of which €250 million under advanced negotiations.

1.1.8.2 A largely refocused portfolio to capture growth opportunities

Since 2020, Covivio has completed €2.1 billion of disposals, 80% of them in offices, and invested €1.4 billion, mainly through Capex on its assets. This qualitative rotation process has enabled to refocus the portfolio and adapt to changes in the rental market:

―	The portfolio has started to rebalance, with the proportion of offices moving from 60% at the end of 2020 to 52% at the end of 2023.
―	69% of offices are located in city centres, up from 59% at the end of 2020. The remainder now consists mainly of core assets in major business hubs, 93% let with a 6.1 years firm lease maturity. With the rental market becoming increasingly polarised, Covivio's upscale positioning (centrality, high environmental performance, strong service offering) is paying off, as demonstrated by activity in 2023.
―	Germany Residential now accounts for 31% of the portfolio and benefits from exposure to the locations most sought after by tenants. The supply/demand imbalance keeps on increasing. In Berlin in particular, where the housing shortage is most acute, a further update of the market indices (Mietspiegel rent index) is expected in Q2 2024 and should help to bolster letting momentum. Covivio can also rely on rents 20% to 25% below regulated rents. Moreover, the average property value of €3,052 per m ² in Berlin still reflects a significant reserve of value, as 68% of the assets are divided into co-ownerships and the average selling price in the market is €4,700 per m ².
―	The strengthening of the hotel portfolio, which represents 17% of the portfolio, has been accompanied by a refocusing on the best locations. Meanwhile, the sector has once again demonstrated its ability to outperform inflation (average annual RevPAR ⁽¹⁾ growth of 3.4% from 2009 to 2023, compared with average inflation of 2.2%). The outlook is favourable, with annual growth in overnight stays in hotels expected to average 5% between 2023 and 2030 in Europe ⁽²⁾ , underpinned by the more pronounced return of international customers. Business is expected to be buoyant again in 2024, driven notably by major events (2024 Olympic Games in Paris, Euro Football Championship in Germany). 2024 will also see the completion of the asset swap with AccorInvest, which will boost profitability.

1.1.8.3 Guidance of growing 2024 recurring net income

Thanks to this qualitative repositioning, Covivio has a bright letting outlook, which should help to offset the impact of deleveraging on earnings, as it did in 2023. Covivio is therefore targeting a continued growth in recurring net income (adjusted EPRA Earnings), to around €440 million in 2024.

The Group also aims to return to a full cash dividend for 2024, with a payout ratio above 80%.

1.1.8.4 Further reinforcement in Hotels

On February 21, 2024, Covivio and Generali signed an agreement for the contribution of the 8.31% of the capital of Covivio Hotels held by Generali in exchange for new Covivio shares, representing the equivalent of €500 million in assets and enabling a further strengthening in the hotel sector (around 20% of the Group's share of assets).

The transaction, which is subject to the approval of the contribution auditor, will be carried out on the basis of a parity of 31 Covivio shares for 100 Covivio Hotels shares, after the 2023 dividend detachment date.

Following completion of the contribution, expected by the end of April, Covivio will hold 52.2% of the capital and voting rights of Covivio Hotels and will file a simplified mandatory public exchange offer for the remaining capital of Covivio Hotels, on the basis of a parity of 31 Covivio shares for 100 Covivio Hotels shares. Covivio Hotels will appoint an independent expert to give an opinion on the financial terms of the offer. The offer, which is subject to AMF approval, must be approved by Covivio's Annual General Meeting on April 17, 2024. Covivio does not intend to implement a squeeze-out following the offer.

⁽¹⁾ Revenue Per Available Room

⁽²⁾ Source: Oxford Economics

1.2 Business analysis

1.2.1 Revenues: €1,011 million and €648 million Group share in 2023

	100%			Group share
(In € million)	2022	2023	Change (%)	2022	2023	Change (%)
Offices	394.3	385.1	-2.4%	330.9	320.3	-3.2%
Paris/Levallois/Neuilly	65.6	67.8	+3.3%	63.1	64.3	+1.9%
Greater Paris (excl. Paris)	101.5	95.5	-5.8%	82.1	74.5	-9.3%
Milan	68.4	68.9	+0.8%	68.4	69.0	+0.8%
Telecom Italia	63.9	58.7	-8.1%	32.6	30.0	-8.1%
Top 7 German cities	51.4	54.1	+5.3%	45.7	48.4	+5.9%
French Major Regional Cities	29.6	29.6	+0.0%	25.0	23.8	-4.7%
Other cities (France & Italy)	14.0	10.4	-25.9%	14.0	10.4	-25.9%
Germany Residential	272.9	286.0	+4.8%	176.6	185.1	+4.8%
Berlin	140.0	147.7	+5.5%	92.0	96.9	+5.3%
Dresden & Leipzig	22.8	23.3	+2.3%	14.8	15.1	+2.3%
Hamburg	17.4	18.5	+6.3%	11.4	12.1	+6.2%
North Rhine-Westphalia	92.7	96.7	+4.3%	58.4	60.9	+4.3%
Hotels leases	296.6	333.4	+12.4%	123.7	139.9	+13.1%
Lease Properties	234.7	257.7	+9.8%	97.3	107.6	+10.5%
France	79.9	90.9	+13.7%	29.8	34.6	+16.1%
Germany	31.8	34.7	+9.0%	13.6	14.8	+8.9%
UK	36.5	37.0	+1.1%	16.0	16.2	+1.1%
Spain	34.5	38.9	+12.6%	15.1	17.0	+12.6%
Belgium	14.1	15.4	+9.1%	6.2	6.7	+9.1%
Others	37.8	40.9	+8.3%	16.6	17.9	+8.3%
Hotels Operating Properties (EBITDA)	62.0	75.8	+22.3%	26.4	32.3	+22.6%
Total strategic activities	963.8	1,004.5	+4.2%	631.1	645.2	+2.2%
Non-strategic	4.2	6.3	+49.4%	1.9	2.8	+49.4%
TOTAL REVENUES	968.1	1,010.8	+4.4%	633.0	648.0	+2.4%

	Group share
(In € million)	Change (%) LfL ⁽¹⁾	% of revenue
Offices	+5.2%	49%
Paris/Levallois/Neuilly	+2.4%	10%
Greater Paris (excl. Paris)	+2.3%	11%
Milan	+6.1%	11%
Telecom Italia	+6.8%	5%
Top 7 German cities	+6.5%	7%
French Major Regional Cities	+15.0%	4%
Other cities (France & Italy)	+5.8%	2%
Germany Residential	+3.9%	29%
Berlin	+4.0%	15%
Dresden & Leipzig	+2.9%	2%
Hamburg	+4.4%	2%
North Rhine-Westphalia	+3.9%	9%
Hotels leases	+12.7%	22%
Lease Properties	+11.1%	17%
France	+14.7%	5%
Germany	+7.6%	2%
UK	+8.0%	3%
Spain	+12.5%	3%
Belgium	+10.4%	1%
Others	+7.7%	3%
Hotels Operating Properties (EBITDA)	+18.6%	5%
Total strategic activities	+6.4%	100%
Non-strategic	-16.6%	0%
TOTAL REVENUES	+6.4%	100%

⁽¹⁾ LfL: Like-for-Like

Group share revenues, up +2.4% at current scope, stand at €648.0 million vs. €633.0 million in 2022, due to:

―

the revenues of strategic activities increased by +6.4% on like-for-like basis due to:

―	Office: +5.2% like-for-like, driven by indexation
―	Hotels: like-for-like revenue increased by +12.7% due to the strong rebound in variable revenues (EBITDA +variable leases) of +19% and a +8.8% like-for-like growth for fixed lease properties (including UK)
―	German Residential: an accelerated growth of +3.9% like-for-like (vs. +3.1% in 2022)

―

delivery of new assets (+€17 million), in Levallois, Berlin and Paris 1 ^st ring

―

asset disposals (-€28 million), mostly offices in France (€13 million) and Italy (-€13 million)

―

assets vacated for redevelopment (-€14 million), mainly in Paris Centre West, Western Crescent and first Ring.

1.2.2 Lease expiries and occupancy rates

1.2.2.1 Annual lease expiries: average lease of 7.0 years

1.2.2.1.1 Average lease duration by activity

	By lease end date (1 ^st break)		By lease end date
Group share (years)	2022	2023	2022	2023
Offices	5.4	5.4	6.1	5.9
Hotels	12.7	12.2	14.1	13.9
Non-strategic	7.9	7.4	8.3	7.4
TOTAL	7.0	7.0	7.8	7.8

1.2.2.1.2 Lease expiries schedule

Group share (In € million)	By lease end date (1 ^st break)	% of total	By lease end date	% of total
2024	40	6%	14	2%
2025	66	9%	25	4%
2026	23	3%	38	5%
2027	34	5%	13	2%
2028	36	5%	42	6%
2029	33	5%	35	5%
2030	53	8%	42	6%
2031	22	3%	45	7%
2032	31	4%	38	6%
2033	26	4%	54	8%
Beyond	107	15%	125	18%
Total Offices and Hotels leases	471	68%	471	68%
German Residential	189	27%	189	27%
Hotels Operating properties	33	5%	33	5%
TOTAL	693	100%	693	100%

In 2024, lease expiries with first break options represent €40 million, of which €25 million are already managed (€5 million of hotels and €20 million of core offices). Only €14.7 million (2.1% of Annualized revenue) are still to be managed in offices, mostly on core assets for which tenant decision is not known yet.

1.2.2.2 Occupancy rate: 96.7% at end-2023, +0.1pt vs. 2022

	Occupancy rate
Group share (In %)	2022	2023
Offices	94.4%	94.5%
German Residential	99.2%	99.1%
Hotels	100.0%	100.0%
Total strategic activities	96.6%	96.7%
Non-strategic	100.0%	100.0%
TOTAL	96.6%	96.7%

1.2.3 Breakdown of annualized revenues

By major tenants

	Annualised revenue
Group share (In € million)	2023	%
AccorInvest	35	5%
Telecom Italia	30	4%
Orange	25	4%
NH	22	3%
Suez	19	3%
IHG	19	3%
B&B	18	3%
Dassault Systèmes	17	2%
Maire Tecnimont	16	2%
Thalès	13	2%
LVMH	9	1%
Edvance	9	1%
Fastweb	6	1%
EDF/Enedis	6	1%
NTT Data Italia	5	1%
Intesa	5	1%
Crédit Agricole	5	1%
Hotels lease properties	10	2%
Other tenants <€5M	234	34%
German Residential	189	27%
TOTAL	693	100%

By activity

1.2.4 Stable cost to revenue ratio

	Offices	German Residential	Hotels (incl. retail)	Other (Mainly France Resi.)	Total
Group share (In € million)	2023	2023	2023	2023	2022	2023
Rental Income	315.5	189.8	110.4	-	606.8	615.6
Unrec. property oper. costs	-29.2	-1.5	-1.3	-0.0	-35.2	-32.0
Expenses on properties	-8.1	-14.1	-0.1	-0.4	-21.5	-22.7
Net losses on unrec. receivable	-0.3	-1.6	-0.2	0.0	0.2	-2.1
Net rental income	277.9	172.6	108.7	-0.4	550.3	558.7
Cost to revenue ratio	14.1%	9.1%	1.5%	0.0%	9.3%	9.2%

1.2.5 Disposals: €720M of new agreements in 2023

(In € million)		Disposals (<2023 closed) (I)	Agreements <2023 to close	New agreements 2023 closed (II)	New agreements 2023 to close (III)	Total 2023 (II) + (III)
Offices & Transformation in Residential	100%	227	35	386	188	574
	Group share	221	35	370	181	551
Germany Residential	100%	47	0	104	16	120
	Group share	31	0	69	11	80
Hotels	100%	26	22	68	84	152
	Group share	8	10	29	37	65
Non Strategic	100%	0	-	-	54	54
	Group share	0	-	-	24	24
TOTAL GROUP	100%	301	57	557	343	900
	GROUP SHARE	260	44	467	253	720

(In € million)		Margin vs 2022 value	Yield ⁽¹⁾	Total Completed Disposals = (I)+(II)
Offices & Transformation in Residential	100%	-11.1%	3.8%	613
	Group share	-11.5%	3.7%	591
Germany Residential	100%	15.8%	2.7%	151
	Group share	15.6%	2.7%	100
Hotels	100%	2.8%	7.2%	94
	Group share	2.1%	6.9%	37
Non Strategic	100%	5.3%	7.6%	0
	Group share	5.3%	7.6%	0
TOTAL GROUP	100%	-5.1%	4.7%	858
	GROUP SHARE	-7.5%	4.2%	727

⁽¹⁾ Group Share

New disposals and agreements totalled €720 million Group share (€900 million at 100%) in 2023. Covivio maintained its strategy of qualitative asset rotation. In details, the disposal agreements include:

―	most disposals (77%; €551 million Group share) were office and conversion into residential assets, with the aim of rebalancing the portfolio and crystallising value. Covivio notably sold the Anjou building for a yield of 3.5%. An office complex on the outskirts of Montpellier was sold for €78 million, representing a yield of 6.6%. Covivio has also signed a preliminary sale agreement on a vacated non-core office building in Charenton, for €49 million
―	in Germany Residential, the quality of the portfolio enabled us to secure €80 million (€120 million at 100%) in disposal agreements, mainly in Berlin, at 16% average margin above appraisal values: €35 million (€53 million at 100%) in unit sales (46% above appraisal values) and €44 million (€67 million at 100%) for four properties sold as a block (in line with 2022 appraisal values)
―	in hotels, €65 million (€152 million at 100%) of disposals were signed, mainly involving non-core assets: 10 budget hotels in France and 2 business hotels in Spain, +2% above end-2022 appraisal values
―	finally, Covivio streamlined its non-core portfolio by signing preliminary sale agreements for €24 million (€54 million at 100%) of retail assets.

1.2.6 Investments: €340M (Group share realized in 2023)

€340 million Group share (€412 million at 100%) of Capex were realized in 2023 (vs €452 million Group share in 2022), to improve the quality of our portfolio and create value:

―	capex in the development pipeline totalled €222 million Group share (€239 million at 100%)
―	€118 million Group share (€174 million at 100%) relate to works on the operating portfolio of which €76 million in German residential of which 2/3 modernization, generating revenues.

1.2.7 Development projects

1.2.7.1 Deliveries: 68,550m ² of offices delivered in 2023

Five offices projects were delivered in 2023 in the Greater Paris and in Berlin:

―	Maslo in Levallois (€216 million total cost & 20,800m ² ), 87% let vs 28% at end-2022
―	DS Campus Extension in Vélizy-Villacoublay (€67 million cost Group share & 27,500m ² ), 100% let to Dassault Systèmes
―	L'Atelier in Paris (€102 million total cost & 5,850m ² ), operated by Wellio
―	Beagle in Berlin (€16 million total cost & 5,100m ² ), 100% let
―	Xylo in Fontenay-sous-Bois (€33 million total cost & 9,300m ² ), 0% let.

1.2.7.2 Committed Office Pipeline: €1.7 bn Group share, 53% pre-let

Covivio has a €1.7bn Group share pipeline of office buildings in France, Germany, and Italy, the bulk of it (85%) in the city centres of Paris, Milan and Berlin, where demand for prime assets is high. This pipeline is highly pre-let (53%) and will participate to the continued improvement of the portfolio quality towards centrality & grade A buildings.

―	Two projects were committed in 2023: Grands Boulevards and Monceau, both in Paris CBD, for €135 million of Capex and a yield on Capex of 6.5% (total yield on cost of 4.5%).
―	The pipeline at end-December 2023 is composed of 10 projects (costs in Group share):

Pipeline at end-2023

Total Capex still to be spent on the committed development pipeline reaches on average €170 million per year by 2027.

Committed projects	Location	Project type	Surface ⁽¹⁾ (m ² )	Delivery year	Pre-leased (%)	Total Budget ⁽²⁾ (M€, 100%)
Monceau	Paris	Regeneration	11,200m ²	2025	0%	249
Thalès 2	Meudon	Construction	38,000m ²	2026	100%	204
Grands Boulevards	Paris	Regeneration	7,500m ²	2027	0%	153
To be delivered in 2025 and beyond			56,700m ²		47%	606
Total France committed pipeline			56,700m ²		47%	606
The Sign D	Milan	Construction	13,200m ²	2024	92%	76
Rozzano - Strada 8	Milan	Regeneration	25,700m ²	2024	47%	44
To be delivered in 2024			38,900m ²		72%	120
Corte Italia	Milan	Regeneration	12,100m ²	2025	100%	125
Symbiosis G+H	Milan	Construction	38,000m ²	2025	100%	198
To be delivered in 2025 and beyond			50,100m ²		100%	323
Total Italy committed pipeline			89,000m ²		92%	443
Loft (65% share)	Berlin	Regeneration	7,600m ²	2024	0%	40
To be delivered in 2024			7,600m ²		0%	40
Icon (94% share)	Düsseldorf	Regeneration	55,700m ²	2025	55%	277
Alexanderplatz (55% share)	Berlin	Construction	60,000m ²	2027	0%	646
To be delivered in 2025 and beyond			115,700m ²		25%	889
Total Germany committed pipeline			123,300m ²		24%	963
TOTAL COMMITTED PIPELINE			269,000M ²		53%	2,011

Committed projects	Total Budget ⁽²⁾ (M€, GS)	Target Yield ⁽³⁾
Monceau	249	4.4%
Thalès 2	204	7.8%
Grands Boulevards	153	4.5%
To be delivered in 2025 and beyond	606	5.6%
Total France committed pipeline	606	5.6%
The Sign D	76	6.1%
Rozzano - Strada 8	44	7.9%
To be delivered in 2024	120	6.7%
Corte Italia	125	5.9%
Symbiosis G+H	198	6.4%
To be delivered in 2025 and beyond	323	6.2%
Total Italy committed pipeline	443	6.3%
Loft (65% share)	26	5.4%
To be delivered in 2024	26	5.4%
Icon (94% share)	261	5.0%
Alexanderplatz (55% share)	355	4.4%
To be delivered in 2025 and beyond	923	4.6%
Total Germany committed pipeline	642	4.7%
TOTAL COMMITTED PIPELINE	1,691	5.4%

⁽¹⁾ Surface at 100%.

⁽²⁾ Including land and financial costs.

⁽³⁾ Yield on total rents.

1.2.7.3 Build-to-sell pipeline

Committed projects	Units	Total Budget ⁽¹⁾ (€m, 100%)	Total Budget ⁽¹⁾ (€m, Group share)	Pre-sold (%)
Berlin (1 project)	92
Bordeaux Lac	203
Antony	68
Saint-Germain-en-Laye	24
To be sold in 2024	387	102	92	73%
Berlin (2 projects)	117
Fontenay-sous-Bois	249
Bordeaux Lac	102
Bobigny	158
To be sold in 2025 & beyond	626	209	133	54%
TOTAL RESIDENTIAL BTS	1,013	311	225	62%

―	Seven projects were delivered in 2023, for a total budget of €74 million (€86 million at 100%), with a 9% margin.
―	At the end of 2023, the German pipeline is composed of 3 projects located in Berlin, where housing shortage is the highest in Germany, totalling 209 residential units and a total cost of €73 million Group share.
―	The current French pipeline is composed of 6 projects located mainly in the Greater Paris and Bordeaux, representing 804 residential units, a total cost of €152 million Group share. 91% of the projects are already pre-sold.
―	The total margin of the committed pipeline reaches 9%.

1.2.7.4 Managed Pipeline

In the long-term, Covivio also owns more than 322,000m ² of landbanks that could welcome new development projects:

―	in Paris, Greater Paris and Major French Cities (209,000m ² ) mainly for turnkey developments
―	in Milan with Symbiosis (23,000m ² ) and Porta Romana (76,000m ² )
―	and approximately 14,000m ² in Germany, mostly in Berlin.

1.2.8 Portfolio

1.2.8.1 Portfolio value: -10.2% like-for-like change

(€ million, Excluding Duties)	Value 2022 Group share	Value 2023 100%	Value 2023 Group share	LfL(1) 12 months change	Yield 2022	Yield 2023
Offices	9,508	9,446	7,847	-11.7%	4.8%	5.5%
Residential Germany	5,238	7,212	4,672	-10.8%	3.5%	4.1%
Hotels	2,622	6,376	2,535	-3.9%	5.0%	5.9%
Non-strategic	27	54	26	-3.1%	6.3%	n.a
TOTAL	17,395	23,089	15,080	-10.2%	4.4%	5.1%

(€ million, Excluding Duties)	% of portfolio
Offices	52%
Residential Germany	31%
Hotels	17%
Non-strategic	0%
TOTAL	100%

⁽¹⁾ LfL: Like-for-Like

The portfolio decreased by -10.2% like-for-like (-€1,771 million) to reach €15.1 billion Group share (€23.1 billion in 100%) mostly due to:

―	Overall in offices, asset values were down -11.7% on a like-for-like basis, with substantial disparities between the relative resilience of city centre assets (69% of the portfolio), down -8.1%, and the more pronounced fall of -20.9% in the non-core category (6% of the office portfolio)
―	Germany Residential recorded a -10.8% decrease on a like-for-like basis, across all geographies and an average yield up from 3.5% to 4.1% (+49bps like-for-like increase in capitalization rates); Assets are valued at their block value. 48% of the portfolio, worth €2.2 billion, is already co-owned, particularly in Berlin (68%; €1.8 billion), where the unit sale value is 52% above the block value
―	In Hotels, portfolio showed better resilience (-3.9%), with an average yield increasing from 5% to 5.9%, mostly driven by the indexation (+45bps) and the increase in capitalization rates (+20bps like-for-like), offset by good operating performance.

Geographical portfolio breakdown at end-2023

1.2.9 List of main assets

The value of the 10 main assets represents 15% of the portfolio Group share, stable vs end 2022.

Top 10 Assets	Location	Tenants	Surface (m2)	Covivio share
Garibaldi Complex	Milan	Multi let	44,700	100%
CB21 Tower	La Défense	Multi let	68,100	75%
Jean Goujon	Paris 8 ^th	LVMH	8,600	100%
Dassault Campus	Vélizy	Dassault Systèmes	97,000	50%
Icon	Düsseldorf	Multi let	55,700	94%
Mäslo	Levallois Perret	Multi let	20,800	100%
Zeughaus	Hamburg	Multi let	43,700	94%
Velizy Thalès	Vélizy	Thalès	88,274	100%
Frankfurt Airport Center	Frankfurt	Multi let	48,100	90%
Art & Co	Paris 12 ^th	Multi let	13,500	100%

1.3 Business analysis by segment

1.3.1 Offices: 52% of Covivio's portfolio

Covivio has implemented a strategy based on centrality, hospitality, and sustainability. This global strategy is particularly reflected in its office portfolio, characterized by high levels of centrality and accessibility, A-quality and top-level services offer. This strategy is bearing fruits, as illustrated by the increase in occupancy rate in 2023, +10bps to 94.5%.

Covivio owns offices in France (27% of Covivio's portfolio), Italy (17%), and Germany (8%) totalling €9.4 billion (€7.8 billion Group share) at end-December 2023.

Covivio's portfolio is split as follows:

―	core assets in city centres (69% of Covivio's office portfolio, +4pts vs. 2022 and +10pts vs. 2020): located in city centres of main European cities (Paris/Levallois/Neuilly, Milan, Berlin, Düsseldorf, Hamburg, and French major regional cities), with high occupancy (97%) and long WALB (5.2 years)
―	core assets in major business hubs (25%, -2pts vs. 2022): includes assets with value resiliency and liquidity, in well-connected business hubs (Greater Paris, Periphery of German cities), with high occupancy (93%) and long WALB (6.1 years), mostly let to long-term partners such as Telecom Italia, Thalès and Dassault Systèmes
―	non-core assets (6%, -2pts vs. 2022): gathers secondary offices assets outside city centres in Germany, Italy, Greater Paris, for which the occupancy rate (82%) and the WALB (3.5 years) are lower, with a disposal or conversion into residential strategy.

Core assets in city centres (69%; €5.4 billion Group Share)

Core assets in major business hubs (25%; €2.0 billion Group Share)

1.3.1.1 European office market: confirmed polarization, slowdown in investments

1.3.1.1.1 French offices: continued rise of prime rents

Take-up in Greater Paris office market reached 1,932,100 m ² in 2023, down -17% year-on-year:

―	Paris Centre West continued to outperform, with take-up declining by -12% year-on-year to 573,700m ²
―	Paris inner city counted for 46% of the total take-up in Greater Paris (vs. 40% on average over the last 5 years).

The immediate offer increased by +10.2% YoY to 4.8 million m ² and the vacancy rate now stands at 8.4%, up by +70bps year-on-year, but with strong disparities:

―	in Paris CBD, vacancies decreased by 10bps to 2.7%
―	in the first ring, the vacancy rate remains at high levels, increasing by 290bps to 15.4%.

Prime rents in Paris continued to increase, reaching an all-time high of €1,070/m ² /year (+7% vs. 2022), while remaining stable in other areas. Incentives in Greater Paris increased slightly to 25.4%, up +80bps YoY, with strong disparities across sub-markets:

―	slight increase in Paris CBD, +20bps at 15.9%
―	higher increase in La Défense, +200bps at 35.9%.

Office investments in Greater Paris totalled €4.7 billion over 2023, down -56% YoY. Prime yields increased over the year, +100bps in Paris CBD to 4.25%.

1.3.1.1.2 Milan offices: still a dynamic letting market

The Milan office market recorded a total take-up of 412,000 m ² (-15% year-on-year but still +8% above 5-year average) after a record year in 2022. Demand remained focused on buildings in prime locations, offering good level of services, as demonstrated by the level of grade A/A+ properties, which now count for 80% of the total take-up in Milan.

The average vacancy rate in Milan decreased by -50bps YoY, to +11.1% at end-2023, with strong disparity between the centre (where most of Covivio's portfolio is located) and the periphery:

―	in Milan CBD, the vacancy rate stood at 5.9%, a slight increase of +40bps over one year, and decreased by 1pt to 3.4% in the semi-centre
―	in the periphery, the vacancy rate increased by 80bps to 17.5%.

The intense demand for high-quality spaces, combined with the scarcity of grade A assets, contributed to the stabilisation of prime rents in Milan at €700/m ² /year.

With a total amount of €1.1 billion invested (-78% YoY), €0.73 billion for Milan (-79.9% YoY), the Italian office investment market was limited in 2023. Prime yields now stand at 4.25% in Milan CBD (+50bps YoY) and 4.75% in Milan Centre (+50bps YoY).

1.3.1.1.3 Germany offices: -26% in take-up, but prime rents up +6% yoy

Take-up in Germany top six markets in 2023 decreased by 26% year-on-year to 2,233,600m ² , impacted by economic slowdown and working from home impact.

Vacancy rates reached 5.6% on average, up +80bps YoY. Berlin (4.4%) and Hamburg (3.9%) recorded the lowest vacancy rates, followed by Munich at 5.5%, while in Frankfurt and Dusseldorf vacancy levels remained higher, respectively at 9.7% and 8.2%.

Prime rents grew on average by +7.4% across 2023, with varying performances: Strong growth in Düsseldorf (+19%), while Munich (+9%) and Berlin (+4%) also experienced decent growth. In Hamburg, prime rents stabilized in 2023, while Frankfurt suffered negative growth (-6%).

Investment volume in German Offices declined by -79% YoY in 2023 to €4.6 billion. Prime yields now stand at 4.4% on average for the top 6 cities in Germany, up +100bps YoY.

1.3.1.2 Accounted revenues: +5.2% on a Like-for-Like basis

	100%			Group share
(In € million)	2022	2023	Change (%)	2022	2023	Change (%)
France	202.1	197.9	-2.1%	175.6	167.6	-4.6%
Paris/Neuilly/Levallois	65.6	67.8	+3.3%	63.1	64.3	+1.9%
Western Crescent and La Defense	48.1	41.4	-14.1%	42.0	34.4	-18.2%
First ring	53.3	54.2	+1.6%	40.1	40.1	+0.1%
Major Regional Cities	29.6	29.6	+0.0%	25.0	23.8	-4.7%
Others France	5.4	5.0	-7.4%	5.4	5.0	-7.4%
Italy	140.8	133.0	-5.6%	109.5	104.2	-4.8%
Milan	68.4	68.9	+0.8%	68.4	69.0	+0.8%
Telecom Italia portfolio (51% ownership)	63.9	58.7	-8.1%	32.6	30.0	-8.1%
Others Italy	8.6	5.3	-37.7%	8.6	5.3	-37.7%
Germany	51.4	54.1	+5.3%	45.7	48.4	+5.9%
Berlin	7.8	8.0	+2.4%	5.5	5.7	+4.4%
Frankfurt	20.5	21.3	+4.3%	18.8	19.6	+4.4%
Düsseldorf	8.9	10.0	+12.1%	8.4	9.4	+12.2%
Other (Hamburg & Munich)	14.3	14.9	+4.2%	13.1	13.6	+4.2%
TOTAL OFFICES	394.3	385.1	-2.4%	330.9	320.3	-3.2%

	Group share
(In € million)	Change (%) LfL ⁽¹⁾
France	+4.0%
Paris/Neuilly/Levallois	+2.4%
Western Crescent and La Defense	-6.6%
First ring	+8.2%
Major Regional Cities	+15.0%
Others France	+2.9%
Italy	+6.4%
Milan	+6.1%
Telecom Italia portfolio (51% ownership)	+6.8%
Others Italy	+8.0%
Germany	+6.5%
Berlin	+0.5%
Frankfurt	+7.8%
Düsseldorf	+11.3%
Other (Hamburg & Munich)	+4.1%
TOTAL OFFICES	+5.2%

⁽¹⁾ LfL: Like-for-Like.

Compared to last year, rental income decreased by -€10.6 million, mainly due to:

―	Like-for-Like rental growth (+€14.7 million) of +5.2%, mostly driven by the impact of strong indexation:
―	Disposals (-€26.4 million) realized in 2022 (-€14.9 million) and in 2023 (-€11.5 million),
―	Positive contribution from office pipeline (+€1.7 million), the impact of vacated assets to be redeveloped (-€13.9 million), being offset by deliveries of new assets (+€15.6 million), shared between 2022 deliveries (So Pop, Streambuilding, Goujon) and 2023 deliveries (Maslö, DS Campus, Beagle).

1.3.1.3 Annualized revenue

	100%				Group share
(In € million)	Surface (m ² )	Number of assets	2022	2023	2022	2023
France	978,119	93	261.0	244.8	214.2	189.7
Paris/Neuilly/Levallois	265,350	23	86.2	85.7	80.9	79.6
Western Crescent and La Defense	99,834	6	47.9	39.6	40.6	30.9
First ring	368,486	19	80.3	83.1	55.0	52.4
Major Regional Cities	195,517	29	41.0	32.3	32.2	22.7
Others France	48,932	16	5.5	4.1	5.5	4.1
Italy	726,488	77	144.6	147.0	116.5	117.7
Milan	226,957	28	79.3	81.8	79.3	81.8
Telecom Italia portfolio (51% ownership)	457,081	47	57.4	59.6	29.2	30.4
Others Italy	42,450	2	7.9	5.6	7.9	5.6
Germany	364,644	19	55.9	56.9	48.2	51.0
Berlin	58,119	7	8.3	8.3	5.2	6.1
Frankfurt	118,649	4	22.6	23.0	20.3	21.2
Düsseldorf	68,786	2	9.6	10.1	9.1	9.5
Other (Hamburg & Munich)	119,090	6	15.4	15.5	13.6	14.2
TOTAL OFFICES	2,069,251	189	461.4	448.7	378.8	358.4

	Group share
(In € million)	Change (%)	% of rental income
France	-11%	53%
Paris/Neuilly/Levallois	-2%	22%
Western Crescent and La Defense	-24%	9%
First ring	-5%	15%
Major Regional Cities	-29%	6%
Others France	-25%	1%
Italy	1%	33%
Milan	3%	23%
Telecom Italia portfolio (51% ownership)	4%	8%
Others Italy	-30%	2%
Germany	6%	14%
Berlin	17%	2%
Frankfurt	4%	6%
Düsseldorf	5%	3%
Other (Hamburg & Munich)	4%	4%
TOTAL OFFICES	-5.4 %	100 %

LfL: Like-for-Like.

The decrease is mainly explained by the following variations:

―	the decrease in France (-11%) is driven by the release of premises in Western Crescent and disposals in Major Regional Cities
―	the increase in Italy is mostly explained by the stability of the portfolio with an increased occupancy rate (98.7%) and a significant WALB (6.3 years)
―	the increase in Germany (+6%) is mostly explained by the Offices portfolio in Berlin and the delivery of Beagle in Berlin.

1.3.1.4 Indexation

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

―	for current leases in France, 93% of rental income is indexed to ILAT; 5% to ICC; The balance is indexed to ILC or the IRL
―	in Italy, the indexation of rental income is usually calculated by applying the increase in the Consumer Price Index (CPI) on each anniversary of the signing of the agreement
―	rents are indexed on the German consumer price index for 42% of leases, 10% have a fixed uplift and 32% have an indexation clause (if CPI goes above an annual increase between 5% and 10%). The remainder (16%) is not indexed and mainly let to public administration.

1.3.1.5 Busy rental activity: 130,860m ² renewed or let during 2023

(In € million - FY 2023)	Surface (m ² )	Annualized Top up rents Group share (€m)	Annualised rents (100%, €/m ² )
Vacated	112,804	31	284
Lettings	79,933	23	332
Renewals	50,927	10	218

2023 was a dynamic year for letting activity. 130,860m ² have been signed or renewed in 2023, with the main lettings shown below:

―

79,933m ² have been let or pre-let in 2023, of which:

―	11,658m ² on Levallois Maslö, now 87% let
―	11,613m ² on Paris Saint-Ouen So Pop, now 71% let
―	7,738m ² on Atlantis in Issy-les-Moulineaux, vacated early 2023 and already 70% relet
―	7,164m ² on Paris Cap18
―	4,242m ² relet in La Défense-CB21, now 100% let
―	1,439m2 on Boulogne Grenier, now 100% let
―	4,560m2 of pre-lettings on the development portfolio (Rozzano)
―	9,190m2 on Zeughaus in Hamburg, now 96% let
―	4,054m2 on FAC in Frankfurt

―

50,927m ² have been renewed, of which 47,426m ² in Germany, mainly:

―	11,575m2 on FAC in Frankfurt
―	7,901m2 on CCC in Frankfurt
―	6,711m2 on Zeughaus in Hamburg
―	4,432m2 on ABC in Düsseldorf.

―

112,804m ² were vacated, mostly in France (93,267m ² ) and Germany (14,309m ² )

―	28,317 m ² for redevelopment (€9.4 million of top up rents, Group share), 24% for new offices, 76% to be converted into residential
―	45,572m ² on assets to be relet, of which 19,409 m ² have already been relet
―	38,915 m ² on assets under disposal agreement.

1.3.1.6 Lease expiries and occupancy rate

1.3.1.6.1 Lease expiries: firm residual lease term of 5.4 years

(In € million Group share)	By lease end date (1 ^st break)	% of total	By lease end date	% of total
2024	34.7	9.7%	12.8	3.6%
2025	63.0	17.6%	22.4	6.3%
2026	20.8	5.8%	37.8	10.5%
2027	32.8	9.2%	12.1	3.4%
2028	35.7	10.0%	42.3	11.8%
2029	18.6	5.2%	22.4	6.2%
2030	44.3	12.4%	33.1	9.2%
2031	19.5	5.4%	40.6	11.3%
2032	26.9	7.5%	34.4	9.6%
2033	21.4	6.0%	47.7	13.3%
Beyond	40.7	11.3%	52.7	14.7%
TOTAL	358.4	100%	358.4	100%

In 2024, €34.7 million of leases will expire, of which €20 million already managed. €14.7 million are still to be managed (2.1% of Covivio annualized revenues), mostly on core assets for which tenant decision is not known yet.

1.3.1.6.2 Occupancy rate: 94.5% at end 2023

(%)	2022	2023
France	94.4%	94.1%
Paris/Neuilly/Levallois	94.8%	95.8%
Western Crescent and La Defense	94.6%	95.8%
First ring	92.0%	89.9%
Major Regional Cities	98.6%	97.9%
Others France	88.0%	84.0%
Italy	98.4%	98.7%
Milan	98.0%	98.3%
Telecom Italia portfolio (QP 51%)	100.0%	100.0%
Others Italy	96.3%	97.3%
Germany	85.1%	86.4%
Berlin	87.4%	85.0%
Frankfurt	88.8%	90.3%
Düsseldorf	93.5%	93.8%
Other (Hamburg & Munich)	78.3%	81.4%
TOTAL OFFICES	94.4%	94.5%

―	In France, the occupancy rate decreased by -30bps to 94.1%, compared to 94.4% at end-2022, mostly due to one vacated asset (Atlantis, already 70% relet) and one delivery in Q1 2023 (Maslö, now 87% let).
―	In Italy, the occupancy rate level increased by +30bps to 98.7%, compared to 98.4% at end-2022, due to new lettings.
―	In Germany, the occupancy rate increased by +130 bps to 86.4% vs. end-2022. This is mainly linked to lettings, especially on Zeughaus in Hamburg and on CCC in Frankfurt.

1.3.1.7 Portfolio values

1.3.1.7.1 Change in portfolio values: -17.5% on offices

(In € million - incl. Duties - Group share)	Value 2022	Invest.	Disp.	Change in value	Reclass. Inventories	Value 2023
Assets in operation	7,913	81	-529	-878	36	6,623
Assets under development	1,595	184	-187	-160	-208	1,224
TOTAL OFFICES	9,508	265	-716	-1,038	-172	7,847

The portfolio value decreased by - €1,661 million since year-end-2022 (-17.5%), mainly driven by:

―	-€1,038 million from Like-for-Like value drop (-11.7%), due to cap rate extension and repricing on assets needing repositioning
―	+€265 million invested in development projects and upgrading works on assets in operation
―	-€716 million from disposals.

1.3.1.7.2 Change on a like-for-like basis: -11.7%

(In € million, Excluding Duties)	Value 2022 100%	Value 2022 Group share	Value 2023 100%	Value 2023 Group share	LfL (%) Change ⁽¹⁾	Yield ⁽²⁾ 2022
France	6,615	5,547	5,010	4,117	-14.5%	4.7%
Paris/Neuilly/Levallois	3,069	2,837	2,476	2,293	-11.5%	3.8%
Western Crescent and La Defense	940	796	604	496	-23.5%	5.8%
First ring	1,622	1,146	1,283	864	-17.9%	5.4%
Major Regional Cities	918	700	601	417	-12.3%	4.8%
Others France	67	67	46	46	-4.7%	8.2%
Italy	3,014	2,520	2,963	2,491	-3.2%	5.2%
Milan	1,915	1,915	1,932	1,932	-2.5%	4.9%
Telecom Italia portfolio (51% ownership)	1,007	513	963	491	-2.4%	5.7%
Others Italy	92	92	68	68	-21.6%	8.6%
Germany	1,699	1,441	1,473	1,239	-17.1%	4.1%
Berlin	509	335	467	306	-18.4%	3.9%
Frankfurt	483	445	411	378	-15.3%	4.5%
Düsseldorf	303	285	251	237	-20.1%	4.7%
Other (Hamburg & Munich)	405	376	344	319	-15.7%	3.6%
TOTAL OFFICES	11,328	9,508	9,446	7,847	-11.7%	4.8%

(In € million, Excluding Duties)	Yield ⁽²⁾ 2023	% of total
France	5.5%	52%
Paris/Neuilly/Levallois	4.5%	29%
Western Crescent and La Defense	7.2%	6%
First ring	6.3%	11%
Major Regional Cities	6.0%	5%
Others France	9.3%	1%
Italy	5.6%	32%
Milan	5.3%	25%
Telecom Italia portfolio (51% ownership)	6.2%	6%
Others Italy	9.2%	1%
Germany	5.2%	16%
Berlin	4.6%	4%
Frankfurt	5.7%	5%
Düsseldorf	5.8%	3%
Other (Hamburg & Munich)	4.9%	4%
TOTAL OFFICES	5.5%	100%

⁽¹⁾ LfL: Like-for-Like.

⁽²⁾ Yield excl. development projects

The -11.7% change in Like-for-Like value is mostly driven by the increase in capitalization rates, across all geographical areas and more specifically for peripheral assets.

Overall, the -11.7% value decline is mostly linked to the market environment. There were strong disparities between assets in the city centres (the major part of our portfolio, 69%), down -8.1% year-on-year, Major Business Hubs down -18% and non-core assets down -20.9%.

The average yield increased by +75bps to 5.5%.

1.3.1.8 Assets partially owned

Partially owned assets are the following:

―	CB 21 Tower (75% owned) in La Défense
―	The Silex 1 and 2 assets in Lyon (50.1% owned and fully consolidated)
―	So Pop project in Paris Saint-Ouen (50.1% owned and fully consolidated)
―	Streambuilding project in Paris 17 ^th (50% owned and fully consolidated)
―	The Dassault campuses in Vélizy (50.1% owned and fully consolidated)
―	The New Vélizy campus for Thales (50.1% owned and accounted for under the equity method)
―	Euromed Centre in Marseille (50% owned and accounted for under the equity method)
―	Coeur d'Orly in Greater Paris (50% owned and accounted for under the equity method).

1.3.2 German residential: 31% of Covivio portfolio

Covivio operates in the German Residential segment through its 61.7% held subsidiary Covivio Immobilien. The figures presented are expressed as 100% and as Covivio Group share.

Covivio owns around ~41,100 units in Berlin, Hamburg, Dresden, Leipzig, and North Rhine-Westphalia, representing €7.2 billion (€4.7 billion Group share) of assets.

Covivio is mostly exposed to A-cities in Germany, with a 100% exposure to metropolitan areas above 1 million inhabitants and 90% in cities above 500,000 inhabitants. Covivio targets the high-end of the housing market.

Exposure to Berlin, where housing shortage is the highest in Germany, represents 56% at year-end 2023. Covivio's portfolio in Berlin is of high quality, with 68% of buildings built before 1950 and 68% of the surface already divided into condominiums.

1.3.2.1 Supply/demand imbalance increased again in 2023, supporting rents

―	In Germany, the demand for housing continued to rise since the start of the year, in a context of increasing number of inhabitants while building completions, around 270,000 units in 2023, remain far from the Government target (> 400,000 units/year).
―	This shortage continues to support rents in Germany and especially in Berlin. Average rents of new buildings in Berlin increased by +9% to €19.4/m ² in 2023, while for existing buildings rents increased by +6% to € 12.9/m ² according to Riwis/Bulwiengesa.
―	German residential investment market (for multi-family buildings above 30 units) was down -38% in 2023 versus the prior year, to €7.5 billion. The private market was also impacted, as shown by private real estate loans recorded by the Bundesbank, decreasing -37% year-on-year to €161 billion.
―	Average prices slightly decreased yoy, by -4% for existing buildings, to €4,750/m ² , still well above the current valuation of Covivio's residential portfolio (€3,052/m ² in Berlin). The average square meter price for new buildings also decreased, by -2.8% to €7,000/m ².

In 2023, Covivio's activities were marked by:

―	accelerated rental growth: +3.9% on a like-for-life basis (vs. +3.1% in 2022); and
―	-10.8% value decline on a like-for-like basis, due to the increase in interest rates.

1.3.2.2 Accounted rental income: +3.9% like-for-like

(In € million)	Rental income 2022 100%	Rental income 2022 Group share	Rental income 2023 100%	Rental income 2023 Group share	Change (%) Group share	Change (%) LfL ⁽¹⁾ Group share
Berlin	140.0	92.0	147.7	96.9	+5.5%	+4.0%
Dresden & Leipzig	22.8	14.8	23.3	15.1	+2.3%	+2.9%
Hamburg	17.4	11.4	18.5	12.1	+6.2%	+4.4%
North Rhine-Westphalia	92.7	58.4	96.7	60.9	+4.3%	+3.9%
Essen	34.2	21.3	35.7	22.2	+4.4%	+4.0%
Duisburg	16.1	10.0	16.6	10.3	+2.8%	+4.1%
Mulheim	10.6	6.7	11.2	7.1	+6.0%	+3.2%
Oberhausen	9.7	6.3	10.1	6.6	+4.2%	+3.9%
Other	22.1	14.2	23.1	14.8	+4.6%	+3.9%
TOTAL	272.9	176.6	286.0	185.1	+4.8%	+3.9%
of which Residential	235.0	151.7	245.1	158.2	+4.3%	+3.2%
of which Other com ⁽²⁾	37.8	24.8	41.1	26.9	+8.5%	+8.7%

(In € million)	% of rental income
Berlin	52%
Dresden & Leipzig	8%
Hamburg	7%
North Rhine-Westphalia	33%
Essen	12%
Duisburg	6%
Mulheim	4%
Oberhausen	4%
Other	8%
TOTAL	100%
of which Residential	85%
of which Other com ⁽²⁾	15%

⁽¹⁾ LfL: Like-for-Like

⁽²⁾ Other commercial: Ground-floor retail, car parks, etc.

Rental income amounted to €185.1 million Group share in 2023, up +4.8% (+€8.5million) thanks to:

―	In Berlin, like-for-like rental growth is +4.0% (+€ 3.6 million), driven by the indexation (+2.0pts) and relettings (+1.4pts) with high uplift (+31% in 2023)
―	Outside Berlin, like-for-like rental growth was strong in all areas (+3.8% on average, +€3.2 million) due to the reletting impact (including modernizations) and the indexation.

1.3.2.3 Annualized rents: € 189.4 million Group share

(In € million)	Surface (m2)	Number of units	Annualised rents 2022 Group share	Annualised rents 2023 100%	Annualised rents 2023 Group share	Change (%) Group share
Berlin	1,308,503	17,852	95.5	150.3	98.5	+3.2%
Dresden & Leipzig	266,623	4,354	15.0	23.9	15.5	+2.9%
Hamburg	148,988	2,415	12.0	19.4	12.7	+5.9%
North Rhine-Westphalia	1,103,280	16,482	60.3	99.5	62.7	+4.1%
Essen	393,973	5,757	22.2	36.6	22.7	+2.5%
Duisburg	198,572	3,033	10.1	17.0	10.6	+4.1%
Mulheim	130,315	2,180	6.8	11.7	7.4	+7.5%
Oberhausen	124,840	1,830	6.6	10.4	6.8	+4.2%
Others	255,580	3,682	14.5	23.8	15.2	+4.8%
TOTAL	2,827,395	41,103	182.8	293.0	189.4	+3.6%
o/w Residential	2,591,915	39,550	156.2	251.6	162.3	+3.9%
o/w Other commercial ^*	235,480	1,553	26.4	41.4	27.1	+2.8%

(In € million)	Average rent per month	% of rental income
Berlin	9.6 €/m ²	52%
Dresden & Leipzig	7.5 €/m ²	8%
Hamburg	10.8 €/m ²	7%
North Rhine-Westphalia	7.5 €/m ²	33%
Essen	7.7 €/m ²	12%
Duisburg	7.1 €/m ²	6%
Mulheim	7.5 €/m ²	4%
Oberhausen	7.0 €/m ²	4%
Others	7.8 €/m ²	8%
TOTAL	8.6 €/M ²	100%
o/w Residential	8.1 €/m ²	86%
o/w Other commercial ^*	14.7 €/m ²	14%

^* Other commercial: Ground-floor retail, car parks, etc

The portfolio breakdown remained relatively stable over the past few periods, with Berlin generating slightly above 50% of total rental income (stable vs 2022), through residential units and some commercial units (mainly ground-floor retail).

Rental income (€8.6/m ² /month on average) offers solid growth potential through reversion vs. our achieved reletting rents in all our markets including Berlin (25%-30%) Hamburg (20%-25%), Dresden and Leipzig (10%-15%) and in North Rhine-Westphalia (20%-25%).

1.3.2.4 Indexation

Rental income from residential property in Germany changes depending on multiple mechanisms.

1.3.2.4.1 Rents for re-leased properties:

In principle, rents may be increased freely, provided the property is not financed through governmental subsidies.

As an exception to the unrestricted rent setting principle, cities like Berlin, Hamburg, Cologne, Düsseldorf, Dresden and Leipzig have introduced rent caps (Mietpreisbremse) for re-leased properties. In these cities, rents for re-leased properties cannot exceed the public rent reference (Mietspiegel) by more than 10%, except in the following conditions:

―	if the property has been modernised in the past three years, the rent for the re-let property may exceed the +10% limit by a maximum of 8% of the costs to modernise it
―	in the event the property is completely modernised (work amounting to more than one-third of new construction costs excl. Maintenance), the rent may be increased freely
―	if the rent received from the previous tenant is higher than the +10% limit, then the previous rent will be the limit in the case of re-letting.

Properties built after 1 October 2014 are not included in the rent cap.

1.3.2.4.2 For current leases:

For residential tenants, the rent can generally be adjusted based on the local comparative rent (Mietspiegel), which is usually determined based on the rent index. In addition to this adjustment method, an index-linked or graduated rent agreement can also be concluded. A successive combination of adjustment methods can also be contractually agreed (e.g. graduated rent for the first 5 years of the contract, followed by adjustment to the local comparative rent).

Adjustment to the local comparative rent: The current rent can be increased by 15% to 20% within three years, depending on the region, without exceeding the local comparative rent (Mietspiegel). This type of contract represents c. 90% of our rental income.

1.3.2.4.3 For current leases with work carried out:

If works have been carried out, rents may be increased by up to 8% of the cost of work excl. maintenance, in addition to the possible increase according to the rent index. This increase is subject to three conditions:

―	the works aim to save energy, increase the utility value, or improve the living conditions in the long run
―	the rent increase takes effect 3 months after the declaration of rent increase
―	the rent may not be increased by more than €3/m ² for work to modernise the property within a six-year period (€2/m ² if the initial rent is below €7/m ² ).

1.3.2.5 Occupancy rate: a high level of 99.1%

(%)	2022	2023
Berlin	98.6%	98.6%
Dresden & Leipzig	99.6%	99.8%
Hamburg	99.9%	100.0%
North Rhine-Westphalia	99.7%	99.6%
TOTAL	99.2%	99.1%

The occupancy rate stands at 99.1%. It has remained above 98% since the end of 2015 and reflects the Group's very high portfolio quality and low rental risk.

1.3.2.6 Portfolio values: €7.2 billion (€4.7 billion Group share)

1.3.2.6.1 Change in portfolio value: -10.8%

(In € million, Group share, Excluding Duties)	Value 2022	Invest.	Disposals	Change in value	Other	Value 2023
Berlin	2,985	51	-33	-340	11	2,674
Dresden & Leipzig	430	6	-	-57	-	379
Hamburg	401	9	-	-57	-2	350
North Rhine-Westphalia	1,422	31	-0	-185	0	1,269
TOTAL	5,238	97	-33	-639	9	4,672

In 2023, the portfolio's value decreased by -10.8% to €4.7 billion Group share, driven by the like-for-like decrease in value of €640 million.

1.3.2.6.2 Change on a like-for-like basis: -10.8%

(In € million, Excluding Duties)	Value 2022 100%	Value 2022 Group share	Surface (m ² ) 100%	Value 2023 100%	Value 2023 in €/m ²	Value 2023 Group share
Berlin	4,550	2,985	1,299,186	4,078	3,139	2,674
Dresden & Leipzig	663	430	266,623	584	2,190	379
Hamburg	613	401	148,988	536	3,595	350
North Rhine-Westphalia	2,258	1,422	1,103,280	2,014	1,826	1,269
Essen	889	552	393,973	782	1,985	485
Duisburg	362	225	198,572	328	1,650	203
Mulheim	245	154	130,315	223	1,712	140
Oberhausen	201	132	124,840	182	1,460	119
Others	561	360	255,580	499	1,954	320
TOTAL	8,084	5,238	2,818,077	7,212	2,559	4,672
o/w Residential	7,162	4,634	2,583,082	6,356	2,461	4,113
o/w Other com ⁽²⁾	923	604	234,996	855	3,640	559

(In € million, Excluding Duties)	LfL ⁽¹⁾ change	Yield 2022	Yield 2023	% of total value
Berlin	-10.2%	3.1%	3.7%	57%
Dresden & Leipzig	-11.9%	3.5%	4.1%	8%
Hamburg	-12.7%	3.0%	3.6%	8%
North Rhine-Westphalia	-11.2%	4.2%	4.9%	27%
Essen	-12.1%	4.0%	4.7%	10%
Duisburg	-9.5%	4.5%	5.2%	4%
Mulheim	-12.4%	4.5%	5.2%	3%
Oberhausen	-9.4%	5.0%	5.7%	3%
Others	-11.0%	4.1%	4.8%	7%
TOTAL	-10.8%	3.5%	4.1%	100%
o/w Residential	-11.3%	3.4%	4.0%	88%
o/w Other com ⁽²⁾	-7.3%	4.4%	5.0%	12%

⁽¹⁾ LfL: Like for Like

⁽²⁾ Other commercial: Ground-floor retail, car parks, etc.

The average value of residential assets is €2,559 per m ² , with €3,052 per m ² in Berlin and €1,826 per m ² in North Rhine-Westphalia, and the average yield has risen 60 bp year on year to 4.1%. Assets are valued at their block value. 48% of the portfolio is already co-owned, particularly in Berlin (68%), where the unit sale value is 52% above the block value.

In 2023, values decreased -10.8% on a like-for-like basis versus end-2022, reflecting the increase in interest rates. The average yield of the portfolio is up +60bps to 4.1%.

1.3.2.7 Maintenance and modernization Capex

In 2023, Capex totalled €117 million (€41.3/m ² ; €76 million in Group share) and OPEX came to €21 million (€7.3/m ² ; €13 million in Group share).

On average, modernization projects, which totalled €78 million in 2023 (€50 million in Group share), have an immediate yield close to 5%, going up to 10% post relettings.

1.3.3 Hotels: 17% of Covivio's portfolio

Covivio Hotels, a 43.9%-owned subsidiary of Covivio as of 31 December 2023, is a listed property investment company (SIIC) and leading hotel real-estate player in Europe. It invests both in hotels under lease (fixed or variable) and Hotel Operating properties.

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

Covivio owns a high-quality hotel portfolio worth €6.4 billion (€2.5 billion in Group share), focused on major European cities and let or operated by major hotel operators such as Accor, B&B, Mariott, IHG, NH Hotels, 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).

1.3.3.1 Hotel performances at historically high levels

In 2023, hotel performances proved to be exceptional despite an uncertain macroeconomic environment marked by inflation, rising interest rates, and geopolitical tensions.

―	Covivio Hotels' key European markets have significantly surpassed their 2019 performances, with RevPAR in Europe at +16%, ranging from +6% for Germany to +32% for Italy.
―	The Pricing Power of the hotel activity became more obvious in 2023. Average daily rates beat 2019 levels by +23% on average in Europe in 2023, with nice performances among our main exposures: +35% in Italy, +25% in France, +23% UK and +16% in Germany.
―	The French market, the world's leading tourist destination, records a RevPAR increase of +22%.
―	Tourist attendance in the European Union has returned to a level close to pre-pandemic times. The outlook for 2024 is very promising in Europe, especially in France, with numerous events such as the Olympic Games or the or the European Football Championship in Germany.
―	On the investment side, the transaction volumes in hotels recorded in Europe in Q3 YTD 2023 reached €9.4 billion, stable vs. 2022, showing better resilience than other asset classes in 2023. Spain and France continued to attract the lion's share of investments.

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.

1.3.3.2 Accounted revenues: +12.7% on a like-for-like basis

(In € million)	Rental income 2022 100%	Rental income 2022 Group share	Rental income 2023 100%	Rental income 2023 Group share	Change (%) Group share	Change (%) LfL ⁽¹⁾ Group share
Lease properties - Variable	49.4	21.7	56.4	24.7	+14.2%	+18.9%
Lease properties - Fixed	185.3	75.7	201.3	82.8	+9.5%	+8.8%
Operating properties - EBITDA	62.0	26.4	75.8	32.3	+22.6%	+18.6%
Total revenues Hotels	296.6	123.7	333.4	139.9	+13.1%	+12.7%

⁽¹⁾ LfL: Like-for-Like 12 months

Hotel revenues increased by +12.7% like-for-like (+€16.2million Group share) compared to 2022, due to:

―

Lease properties:

―	AccorInvest variable leases portfolio (17% of hotels revenues and 20% of the hotel portfolio), which is indexed on hotel turnover, increased by +18.9% like-for-like compared to 2022, driven by intense touristic activity. These midscale and economy hotels are located in France and Belgium
―	Fixed leases (60% of hotel revenues and 57% of the hotel portfolio): mostly through positive indexation (+€2.3 million) and asset management (+€4 million).

―

Operating properties (23% of the hotel revenues and 23% of the hotel portfolio): mainly located in Germany and in the north of France. The increase from €26.4 million to €32.3 million (Germany +€0.8 million & France +€1.3 million) was driven by the recovery of the market dynamic.

Collection rate: 100% for hotels excluding rent free and deferred payment.

1.3.3.3 Annualized revenue

Breakdown by operators and by country (based on 2023 revenues), totalling €144.9 million in Group share:

Revenues are split using the following breakdown: fixed (60%), variable (17%) and EBITDA on management contracts (23%).

1.3.3.4 Indexation

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

1.3.3.5 Lease expiries: 12.2 years hotels residual lease term

(In € million, Group share)	By lease end date (1 ^st break)	% of total	By lease end date	% of total
2024	5.0	4%	0.8	1%
2025	2.7	2%	2.5	2%
2026	2.7	2%	0.0	0%
2027	1.0	1%	1.0	1%
2028	0.0	0%	0.0	0%
2029	14.3	13%	12.4	11%
2030	8.7	8%	8.7	8%
2031	2.2	2%	4.1	4%
2032	3.8	3%	3.8	3%
2033	4.9	4%	6.3	6%
Beyond	66.3	59%	72.0	64%
TOTAL HOTELS IN LEASE	111.6	100%	111.6	100%

1.3.3.6 Portfolio values: -3.9% like-for-like

1.3.3.6.1 . Change in portfolio values

(In € million, Group share, Excluding Duties)	Value 2022	Invest.	Disposals	Change in value	Other (currency)	Value 2023
Hotels - Lease properties	2,019	5	-9	-80	13	1,948
Hotels - Operating properties	603	4	-	-22	1	586
TOTAL HOTELS	2,622	10	-9	-102	14	2,534

At end-2023, the portfolio amounted to €2.5 billion Group share, down by €87 million compared to year-end 2022, essentially explained by the negative like-for-like change in value (€102 million).

1.3.3.6.2 Change on a like-for-like basis: -3.9%

(In € million, Excluding Duties)	Value 2022 100%	Value 2022 Group share	Value 2023 100%	Value 2023 Group share	LfL ⁽¹⁾ change	Yield 2022
France	2,209	726	2,117	701	-3.6%	4.7%
Paris	853	314	833	309
Greater Paris (excl. Paris)	500	137	461	127
Major regional cities	525	169	511	164
Other cities	332	107	312	101
Germany	666	288	619	267	-7.1%	4.8%
Frankfurt	76	32	70	30
Munich	51	22	45	20
Berlin	73	32	70	30
Other cities	467	202	434	188
Belgium	262	103	244	96	-6.8%	6.0%
Brussels	101	36	96	34
Other cities	160	67	148	61
Spain	646	284	636	279	+0.3%	5.3%
Madrid	289	127	282	124
Barcelona	216	95	222	97
Other cities	142	62	132	58
UK	665	292	662	290	-4.4%	4.5%
Italy	277	121	266	117	-4.8%	5.0%
Other countries	467	205	451	198	-4.1%	5.1%
Total Lease properties	5,193	2,019	4,996	1,948	-4.0%	4.9%
France	300	132	311	136	+2.4%	5.8%
Lille	109	48	103	45
Other cities	191	84	208	91
Germany	875	364	842	350	-4.5%	4.8%
Berlin	621	258	592	246
Dresden & Leipzig	199	83	193	80
Other cities	55	23	57	24
Other countries	245	107	228	100	-8.4%	5.8%
Total Operating properties	1,420	603	1,380	587	-3.7%	5.2%
TOTAL HOTELS	6,613	2,622	6,376	2,535	-3.9%	5.0%

(In € million, Excluding Duties)	Yield 2023	% of total value
France	5.6%	28%
Paris		12%
Greater Paris (excl. Paris)		5%
Major regional cities		6%
Other cities		4%
Germany	5.6%	11%
Frankfurt		1%
Munich		1%
Berlin		1%
Other cities		7%
Belgium	7.2%	4%
Brussels		1%
Other cities		2%
Spain	6.2%	11%
Madrid		5%
Barcelona		4%
Other cities		2%
UK	5.6%	11%
Italy	5.5%	5%
Other countries	5.7%	8%
Total Lease properties	5.8%	77%
France	6.5%	5%
Lille		2%
Other cities		4%
Germany	6.1%	14%
Berlin		10%
Dresden & Leipzig		3%
Other cities		1%
Other countries	6.8%	4%
Total Operating properties	6.2%	23%
TOTAL HOTELS	5.9%	100%

⁽¹⁾ LfL: Like-for-Like on a 12-months basis

At the end of December 2023, Covivio held a unique hotel portfolio of €2.5 billion Group share (€6.4 billion at 100%) in Europe. This strategic portfolio is characterised by:

―	High-quality locations: average Booking.com location grade of 8.9/10 and 89% in major European city destinations
―	Diversified portfolio: in terms of countries (12 countries, none representing more than 33% of the total portfolio), and segment (67% economic/midscale and 33% upscale)
―	Major hotel operators with long-term leases: 16 hotel operators with an average lease duration of 12.2 years.

The portfolio value decreased by -3.9% Like-for-Like, a mix of:

―	Lease properties (-4.0%): This decline, primarily attributed to the rise in cap rates, was counterbalanced by a positive income effect resulting from the improved hotel performance and rent indexation
―	Operating portfolio (-3.7%): The value of German hotel fell by 4.5% in 2023, reflecting market performance and a rise in interest rates. Good performance for the French portfolio with a value increase of +2.4% thanks to one asset in the south of the France which was renovated and to the rebound of market performance.

Portfolio breakdown by value and geography

89% assets are located in major European destinations

1.4 Financial information and comments

Covivio's activity involves the acquisition or development, ownership, administration, and leasing of properties, particularly Offices in France, Italy and Germany, Residential in Germany, and Hotels in Europe.

Registered in France, Covivio is a public limited company with a Board of Directors.

The German Residential information in the following sections include some Office assets owned by the subsidiary Covivio Immobilien.

1.4.1 Consolidated accounts

1.4.1.1 Scope of consolidation

On 31 December 2023, Covivio's scope of consolidation includes companies located in France and several European countries. The main equity interests fully consolidated but not wholly owned companies are as follows:

Subsidiaries	31 Dec. 2022	31 Dec. 2023
Covivio Hotels	43.9%	43.9%
Covivio Immobilien	61.7%	61.7%
Sicaf (Telecom Italia portfolio)	51.0%	51.0%
OPCI CB 21 (CB 21 Tower)	75.0%	75.0%
Covivio Alexanderplatz	55.0%	55.0%
SCI Latécoëre (DS Campus)	50.1%	50.1%
SCI Latécoëre 2 (DS Campus extension)	50.1%	50.1%
SCI 15 rue des Cuirassiers (Silex 1)	50.1%	50.1%
SCI 9 rue des Cuirassiers (Silex 2)	50.1%	50.1%
Sas 6 Rue Fructidor (So Pop)	50.1%	50.1%
SCCV Fontenay sous bois (France Residential)	50.0%	50.0%
SCCV Bobigny (France Residential)	60.0%	60.0%
SNC N2 Batignolles promo (Streambuilding)	50.0%	50.0%
SCI N2 Batignolles (Streambuilding)	50.0%	50.0%
Hôtel N2 (Streambuilding - Zoku)	100.0%	50.1%

1.4.1.2 Accounting principles

The consolidated financial statements have been prepared in accordance with the international accounting standards issued by the IASB (International Accounting Standards Board) and adopted by the European Union on the date of preparation. These standards include the IFRS (International Financial reporting Standards), as well as their interpretations. The financial statements were approved by the Board of Directors on 15 February 2024.

1.4.1.3 Simplified income statement - Group share

(In € million, Group share)	2022	2023	var. %
Net rental income	550.3	558.7	+8.4	2%
EBITDA from Hotel Operating activity & flex-office	38.9	47.9	+9.0	+23%
Income from other activities (incl. Property dev.)	22.9	17.8	-5.1	-22%
NET REVENUE	612.1	624.4	+12.3	+2%
Net operating costs	-83.3	-84.6	-1.3	+2%
Amortisations of operating assets	-35.9	-44.4	-8.5	+24%
Net change in provisions and other	6.6	11.4	+4.8	+72%
CURRENT OPERATING INCOME	499.5	506.8	+7.3	+1%
Net income from inventory properties	-2.3	-0.1	+2.2	n.a.
Income from value adjustments	-119.5	-1,751.8	-1,632.4	n.a.
Income from asset disposals	-6.8	-34.3	-27.5	+408%
Income from disposal of securities	24.9	-1.0	-25.8	n.a.
Income from changes in scope & other	-0.4	-2.0	-1.6	+370%
OPERATING INCOME	395.4	-1,282.4	-1,677.8	N.A.
Income from non-consolidated companies	0.0	0.0	+0.0	n.a.
Cost of net financial debt	-87.2	-97.4	-10.2	+12%
Interest charges linked to financial lease liability	-7.2	-7.3	-0.1	+1%
Value adjustment on derivatives	371.9	-132.4	-504.3	n.a.
Discounting of liabilities-receivables & Result of change	-0.3	0.2	+0.4	n.a.
Early amortisation of borrowings' cost	-0.9	-1.5	-0.6	n.a.
Share in earnings of affiliates	40.1	-33.2	-73.3	n.a.
INCOME BEFORE TAX	711.8	-1,554.1	-2,265.9	N.A.
Deferred tax	-75.2	156.6	+231.8	n.a.
Corporate income tax	-15.8	-21.2	-5.4	+34%
NET INCOME FOR THE PERIOD	620.7	-1,418.8	-2,039.5	N.A.

1.4.1.3.1 €624.4 million net revenue (+2%)

Net revenue in Group share increased especially thanks to both dynamic rental activity in all business lines and strong operating activity in hotels, despite impact of disposals in offices.

(In € million, Group share)	2022	2023	var.	%
France Offices	156.7	150.1	-6.5	-4%
Italy Offices (incl. retail)	91.2	89.8	-1.4	-2%
German Offices	31.9	37.5	+5.6	+18%
Offices	279.7	277.4	-2.3	-1%
German Residential	167.5	172.6	+5.1	+3%
Hotels (incl. Retail)	102.5	108.7	+6.2	+6%
TOTAL NET RENTAL INCOME	550.3	558.7	+8.4	+2%
EBITDA from Hotel Operating activity & flex-office	38.9	47.9	+9.0	+23%
Income from other activities	22.9	17.8	-5.1	-22%
NET REVENUE	612.1	624.4	+12.3	+2%

France Offices: decrease is led by the sales of assets partially offset by indexation and deliveries.

Italy Offices: decrease mainly due to the sale of assets, partially offset by the like-for-like rental growth driven by high indexation.

Germany Offices: increase of the rents benefitting from high indexation and a slight reduction of the vacancy.

German Residential: increase driven by continued rental growth driven by mainly indexation, modernisation works and positive reversion.

Hotels in Europe: recovery has been very strong and steady over the period having significant impact on variable rents.

―	EBITDA from the Hotel Operating activity and flex-office: increase in revenues of the hotel property activity following the acquisition of 3 funds in UK and 2 funds in Belgium in the 4 ^th quarter of 2022.The flex-office activity increased slightly thanks to the ramp-up of this activity and the opening of new spaces in Milan with full year effect in 2023.
―	Income from other activities: the change in net income from other activities comes from the slowdown in property development projects in German and French residential business.
―	Net operating costs: a strong cost control compensates the decrease in external fees revenues.
―	Amortisation of operating assets:

Note that this item includes the amortisation linked to the right of use according to IFRS 16. This amortisation of right of use is mainly related to owner-occupied buildings and headquarters. The €8.4 million increase is mainly due to new operated hotels in the UK (3 hotels), Belgium (2 hotels in Bruges) in France (1 hotel in Paris) and the full year effect of the new Wellio site opened in 2022.

―	Change in the fair value of assets:

The income statement recognises changes in the fair value (€1,751.8 million) of assets based on appraisals carried out on the portfolio. This line item does not include the change in fair value of assets recognised at amortised cost under IFRS but is taken into account in the EPRA NAV calculation (Hotel Operating properties, flex-office assets and other own occupied buildings). For more details on changes in the portfolio by activity, see section 1 of this document.

―	Income from asset disposals & disposals of securities:

Income from asset disposals contributed €-34.3 million during the year.

―	Cost of net financial debt:

The cost of net financial debt increases due to the rise in interest rate, partially offset by a decrease of net debt.

―	Interest charges linked to finance lease liability:

the Group rents some land under long term leasehold. According to IFRS 16, such rental costs are stated as interest charges. This is stable compared with FY 2022 and refers to the hotel activity for an amount equal to -€6.7 million.

―	Value adjustment on derivatives:

The fair value of financial instruments (hedging instruments) is slightly impacted by an average -68 bps decrease in the 10Y swap. The P&L impact is an expense of -€132.4 million.

1.4.1.3.2 Share of income of equity affiliates

Group share	% interest	Contribution to earnings (€million)	Value	Change in equity value (%)
OPCI Covivio Hotels	8.7%	0.1	42.1	-4%
Lénovilla (New Vélizy)	50.1%	-21.0	61.7	-24.8%
Euromed	50.0%	-5.3	28.6	-15.6%
Cœur d'Orly	50.0%	-7.3	28.4	-26.0%
Phoenix (Hotels)	14.6%	-1.0	47.7	-2.9%
Zabarella 2023 Srl	64.7%	-0.3	13.6	+0.0%
Fondo Porta di Romana	32.0%	1.5	38.0	+8.4%
TOTAL		-33.2	260.0	-7.9%

The equity affiliates include Hotels in Europe and the France/ Italy Offices sectors:

―	OPCI Covivio Hotels: three hotel portfolios, B&B (18 hotels), Campanile (19 hotels) and AccorHotels (35 hotels) 80%-owned by Crédit Agricole Assurances
―	Lenovilla: the New Vélizy campus (47,000m ² ), let to Thalès and co-owned with Crédit Agricole Assurances
―	Euromed in Marseille: one office building (Calypso) and a hotel (Golden Tulip) in partnership with Crédit Agricole Assurances
―	Coeur d'Orly in Greater Paris: two buildings in the Orly airport business district in partnership with ADP
―	Phoenix hotel portfolio: 32% stake held by Covivio Hotels (43.9% subsidiary of Covivio) in a portfolio of 25 Accor Invest hotels in France & Belgium and 2 B&B in France
―	Fondo Porta di Romana in Milan is a joint venture between Covivio (32.0%), Coima (64.7%) and Prada (3.3%) to participate to the acquisition of a plot of land in South Milan (future Olympic game village).

1.4.1.3.3 Taxes

The corporate income tax relates to the tax on:

―	foreign companies that are not or are only partially subject to a tax transparency regime (Italy, Germany, Belgium, the Netherlands, and Portugal)
―	French subsidiaries with a taxable activity.

The corporate income tax amounted to -€21.2 million, including taxes on sales (-€8.0 million).

1.4.1.3.4 Adjusted EPRA Earnings at €435.4 million

	Net income Group share	Restatement	Adjusted EPRA E. 2023	Adjusted EPRA E. 2022
NET RENTAL INCOME	558.7	0.0	558.7	550.3
EBITDA from the Hotel Operating activity & flex-office	47.9	0.0	47.9	38.9
Income from other activities (incl. Property dev.)	17.8	0.0	17.8	22.9
NET REVENUE	624.4	0.0	624.4	612.1
Management and administration revenues	25.4	0.0	25.4	27.6
Operating costs	-110.0	0.0	-110.0	-111.0
Amortisations of operating assets	-44.4	29.6	-14.8	-14.5
Net change in provisions and other	11.4	-6.4	5.0	3.3
OPERATING INCOME	506.8	23.2	530.0	517.5
Net income from inventory properties	-0.1	0.1	0.0	0.0
Income from value adjustments	-1,751.8	1,751.8	0.0	0.0
Income from asset disposals	-34.3	34.3	0.0	0.0
Income from disposal of securities	-1.0	1.0	0.0	0.0
Income from changes in scope & other	-2.0	2.0	0.0	0.0
OPERATING RESULT	-1,282.4	1,812.4	530.0	517.5
Cost of net financial debt	-97.4	0.0	-97.4	-86.3
Interest charges linked to finance lease liability	-7.3	4.6	-2.7	-2.6
Value adjustment on derivatives	-132.4	132.4	0.0	0.0
Discounting of liab.-receiv. & Foreign Exchge. Result	0.2	0.0	0.2	-0.3
Early amortisation of borrowings' costs	-1.5	1.1	-0.4	-0.3
Share in earnings of affiliates	-33.2	52.2	19.0	15.8
PRE-TAX NET INCOME	-1,554.1	2,002.8	448.6	443.9
Deferred tax	156.6	-156.6	0.0	0.0
Corporate income tax	-21.2	8.0	-13.2	-13.7
NET INCOME FOR THE PERIOD	-1,418.8	1,854.2	435.4	430.2
Average number of shares			97,487,850	93,955,927
NET INCOME PER SHARE			4.47	4.58

―	The restatement of the amortisation of operating assets (+ €29.6 million) offsets the real estate amortisation of the flex-office and hotel operating activities.
―	The restatement of the net change in provisions (-€6.4 million) consists of the ground lease expenses linked to the UK leasehold for €3.3 million and the reversal of a null and void provision for a €3.2 million on the Hotels in Europe scope.
―	Concerning the interest charges linked to finance lease liabilities relating to the UK leasehold, as per IAS 40 §25, €4.6 million was cancelled and replaced by the lease expenses paid (see the amount of -€3.3 million under the line item "Net change in provisions and other").
―	The restatement of the share in earnings of affiliates allows for the EPRA Earnings contribution to be displayed.
―	The restatement of the corporate income tax (+€8.0 million) is linked to the tax on disposals.

1.4.1.3.5 Adjusted EPRA Earnings by activity

(In € million, Group share)	Offices	Germany Residential	Hotels in lease ^*	Hotel Operating properties	Corporate or non-attrib. sector	2023
Net rental income	277.9	172.6	107.5	1.2	-0.4	558.7
EBITDA from Hotel oper. activity & flex-Office	15.8	0.0	0.0	32.1	0.0	47.9
Income from other activities (incl. Property dev.)	14.4	2.6	0.0	0.0	0.8	17.8
NET REVENUE	308.1	175.2	107.5	33.3	0.4	624.4
Net operating costs	-48.1	-30.6	-3.2	-1.1	-1.5	-84.6
Amortisation of operating assets	-9.3	-2.1	-0.1	-2.1	-1.2	-14.8
Net change in provisions and other	4.9	-0.5	-0.8	-0.6	1.9	5.0
Operating result	255.6	141.9	103.4	29.5	-0.4	530.0
Cost of net financial debt	-40.0	-31.4	-19.9	-6.5	0.5	-97.4
Other financial charges	-1.0	0.0	-0.9	-1.1	-0.1	-3.0
Share in earnings of affiliates	13.5	0.0	5.5	0.0	0.0	19.0
Corporate income tax	-6.1	-1.5	-3.7	-1.5	-0.5	-13.2
ADJUSTED EPRA EARNINGS	221.9	109.0	84.3	20.5	-0.4	435.4
Development margin	-3.2	-2.5	0.0	0.0	0.0	-5.7
EPRA Earnings	218.8	106.5	84.3	20.5	-0.4	429.7

^* Including non-strategic Retail in the subsidiary scope

1.4.1.3.6 EPRA Earnings of affiliates

(In € million, Group share)	Offices	Hotels (in lease)	2023
Net rental income	13.4	7.7	21.1
Net operating costs	-0.5	-0.6	-1.1
Amortisation of operating properties	1.3	0.4	1.7
Operating result	14.2	7.5	21.7
Cost of net financial debt	-0.7	-1.8	-2.5
Share in earnings of affiliates	0.0	-0.2	-0.2
SHARE IN EPRA EARNINGS OF AFFILIATES	13.5	5.5	19.0

1.4.1.4 Simplified consolidated income statement (at 100%)

(In € million, 100%)	2022	2023	var.	%
Net rental income	842.3	863.5	+21.1	3%
EBITDA from Hotel Operating activity & flex-office	74.9	91.3	+16.4	+22%
Income from other activities (incl. Property dev.)	20.3	8.5	-11.8	-58%
NET REVENUE	937.6	963.3	+25.7	+3%
Net operating costs	-121.2	-119.4	+1.8	-2%
Amortisation of operating assets	-58.9	-73.6	-14.7	+25%
Net change in provisions and other	12.6	25.0	+12.4	+99%
CURRENT OPERATING INCOME	770.0	795.3	+25.3	+3%
Net income from inventory properties	-2.4	-0.1	+2.2	n.a.
Income from asset disposals	-0.5	-37.9	-37.4	n.a.
Income from value adjustments	18.2	-2,437.3	-2,455.5	n.a.
Income from disposal of securities	24.9	-0.9	-25.8	n.a.
Income from changes in scope	-0.4	-4.2	-3.8	n.a.
OPERATING INCOME	809.8	-1,685.2	-2,494.9	N.A.
Cost of net financial debt	-139.7	-165.6	-25.9	+19%
Interest charge related to finance lease liability	-15.8	-15.9	-0.1	+1%
Value adjustment on derivatives	582.6	-207.7	-790.3	n.a.
Discounting of liabilities and receivables	-0.6	0.4	+0.9	n.a.
Early amortisation of borrowings' costs	-1.5	-1.8	-0.3	n.a.
Share in earnings of affiliates	51.0	-34.4	-85.4	n.a.
INCOME BEFORE TAX	1,285.8	-2,110.1	-3,396.0	N.A.
Deferred tax	-109.8	241.0	+350.8	n.a.
Corporate income tax	-28.1	-33.7	-5.6	+20%
NET INCOME FOR THE PERIOD	1,147.9	-1,902.9	-3,050.8	N.A.
Non-controlling interests	527.2	-484.1	-1,011.3	n.a.
NET INCOME FOR THE PERIOD - GROUP SHARE	620.7	-1,418.8	-2,039.5	N.A.

The -€3,050.8 million decrease in net income for the period compared with FY 2022 is related to the value decreases of properties (- €2,437.3 million compared with a +€18.2 million in FY 2022) and derivatives (€-207.7 million compared with a +€582.6 in FY 2022), partly offset by the change in deferred taxes mainly related to the effects described above (+€350.8 million) and strong operating performances.

As a result, these effects are also presents in non-controlling interests and in net income Group share.

(In € million, 100%)	2022	2023	var.	%
France Offices	182.3	179.5	-2.9	-2%
Italy Offices (incl. Retail)	119.9	116.3	-3.6	-3%
German Offices	34.2	40.1	+5.9	+17%
Offices	336.4	335.9	-0.6	-0%
German Residential	259.1	267.4	+8.3	+3%
Hotels (incl. Retail)	246.2	260.2	+14.1	+6%
Other (mainly France Residential)	0.6	0.0	-0.6	-100%
TOTAL NET RENTAL INCOME	842.3	863.5	+21.1	+3%
EBITDA from the Hotel Operating activity & flex-office	74.9	91.3	+16.4	+22%
Income from other activities	20.3	8.5	-11.8	-58%
NET REVENUE	937.6	963.3	+25.7	+3%

1.4.1.5 Simplified consolidated balance sheet (Group share)

(In € million, Group share)

Assets	31/12/2022	31/12/2023
Investment properties	14,343	12,596
Investment properties under dev.	1,371	1,007
Other fixed assets	985	993
Equity affiliates	282	260
Financial assets	233	251
Deferred tax assets	78	57
Financial instruments	562	366
Assets held for sale	228	227
Cash	343	778
Inventory (Trading & Constr. activities)	190	257
Other	500	420
TOTAL	19,116	17,211

Liabilities	2022	2023
Shareholders' equity	9,443	7,957
Borrowings	7,924	7,703
Financial instruments	244	142
Deferred tax liabilities	835	650
Other liabilities	670	760
TOTAL	19,116	17,211

1.4.1.5.1 Investment properties, Properties under development and Other fixed assets

The portfolio (including assets held for sale) at the end of December by operating segment is as follows:

(In € million, Group share)	2022	2023	var.
France Offices	5,164	3,932	-1,232
Italy Offices (incl. Retail)	2,445	2,403	-42
German Offices	1,335	1,145	-190
Offices	8,943	7,479	-1,464
German Residential	5,374	4,811	-563
Hotels (incl. Retail)	2,606	2,530	-76
Car parks (and other)	4	3	-1
TOTAL FIXED ASSETS	16,927	14,823	-2,104

The decrease in Offices (-€1.464 million) was mainly due to the disposals (-€587 million), the change in fair value (-€1,020 million) and reclassification to inventories for new build to sell projects (€122 million) partly offset by +€220 million of Acquisition and Capex.

The decrease in German Residential (-€563 million) was mainly due to the change in fair value (-€653 million), Capex and acquisitions (+€97million), partly offset by disposals for the year (€31 million).

The decrease in the Hotels portfolio (-€76 million) was mainly driven by the decrease in fair value (-€78 million), Amortization of operating properties and other tangible assets (-€20.3 million), Acquisition and Capex (+€19 million), right of use (+€5 million), offset by disposals (-€9 million) and foreign currency exchange gain (+€10 million).

1.4.1.5.2 Assets held for sale (included in the total fixed assets above), €227.3 million at year end 2023

Assets held for sale consist of assets for which a preliminary sales agreement has been signed. The breakdown by segment is as follow:

―	50.7% of offices in France: €115 million
―	31.2% of hotels in Europe: €71 million
―	15.9% of offices in Italy: €36 million
―	2.2% of residential in Germany: €5 million.

1.4.1.5.3 Total shareholders' equity Group share

Shareholders' equity decreased from €9,443 million at the end of 2022 to €7,957 million at year end 2023, i.e. -€1,486 million, mainly due to:

―	income for the period: -€1,418.8 million
―	the dividend distribution: -€351.9 million, partially offset by option for payment in shares (+€279.1 million).

1.4.1.5.4 Deferred tax liabilities

Deferred tax liabilities represent €650 million in liabilities at the end of year versus €835 million in 2022, Deferred tax assets represent €57 million in assets at the end of year versus €78 million in 2022. This €164 million decrease is mainly due to the drop in appraisal values in Germany (-€116.2 million), the drop in fair values of derivatives (-€8 million) and the entry in the UK REIT regime in the Hotel activity (€-14 million).

1.4.1.6 Simplified consolidated balance sheet (at 100%)

(In € million, 100%)

Assets	2022	2023
Investment properties	21,391	19,046
Investment properties under dev.	1,574	1,140
Other fixed assets	1,718	1,730
Equity affiliates	401	375
Financial assets	114	118
Deferred tax assets	86	72
Financial instruments	813	522
Assets held for sale	259	327
Cash	462	901
Inventory (Trading & Constr. activities)	264	308
Other	579	488
TOTAL	27,661	25,026

Liabilities	2022	2023
Shareholders' equity	9,443	7,957
Non-controlling interests	4,648	4,006
Shareholders' equity	14,092	11,963
Borrowings	10,968	10,707
Financial instruments	300	185
Deferred tax liabilities	1,320	1,054
Other liabilities	981	1,117
TOTAL	27,661	25,026

1.4.1.7 Payment terms for suppliers and customers (in €)

COVIVIO France

	Article D. 441 I.-1°: Invoices received and not paid at the end of the financial year in which they are due
	0 day (indicative)	1 to 30 days	31 to 60 days	61 to 90 days	Over 91 days	Over 1 day
(A) Late payment tranches
Number of invoices concerned	137					203
Total amount of invoices concerned including tax	660,190.64	524,950.48	14,508.82	2,526.66	54,357.78	596,343.74
Percentage of the total amount of purchases including tax during the financial year	1.38%	1.09%	0.03%	0.01%	0.11%	1.24%
Percentage of revenues including tax during the financial year
(B) Invoices excluded from (A) relating to debts and disputed receivables or not recognised in the books
Number of invoices excluded						N/A
Total number of invoices excluded						N/A
(C) Reference payment terms used (contractual or legal - Article L. 441-6 or L. 43-1 of the French Commercial Code)
Payment terms used to calculate late payments					Contractual terms: Legal terms: 60 days

	Article D. 441 I.-1°: Invoices received and not paid at the end of the financial year in which they are due
	0 day (indicative)	1 to 30 days	31 to 60 days	61 to 90 days	Over 91 days	Over 1 day
(A) Late payment tranches
Number of invoices concerned	36					5,037
Total amount of invoices concerned including tax	20,182.30	924,642.51	206,986.78	225,843.90	1,345,432.55	2,702,905.74
Percentage of the total amount of purchases including tax during the financial year
Percentage of revenues including tax during the financial year	0.02%	1.04%	0.23%	0.25%	1.51%	3.03%
(B) Invoices excluded from (A) relating to debts and disputed receivables or not recognised in the books
Number of invoices excluded						N/A
Total number of invoices excluded						0,00
(C) Reference payment terms used (contractual or legal - Article L. 441-6 or L. 43-1 of the French Commercial Code)
Payment terms used to calculate late payments					Contractual terms: Legal terms: Comments: no invoicing of late payment interest

COVIVIO Italy

	Article D. 441 I.- 1° : Factures reçues non réglées à la date de clôture de l'exercice dont le terme est échu
	0 day (indicative)	1 to 30 days	31 to 60 days	61 to 90 days	Over 91 days	Over 1 day
(A) Late payment tranches
Number of invoices concerned	372	186	186	186	1	187
Total amount of invoices concerned including tax	4,519,216.79	542,060.46	47,340.85	7,612.80	10,964.88	607,978.99
Percentage of the total amount of purchases including tax during the financial year	8.96%					1.21%
Percentage of revenues including tax during the financial year
(B) Invoices excluded from (A) relating to debts and disputed receivables or not recognised in the books
Number of invoices excluded						N/A
Total number of invoices excluded						N/A
Reference payment terms used (contractual or legal - Article L. 441-6 or L. 43-1 of the French Commercial Code)
Payment terms used to calculate late payments			Contractual terms: 30-60-90 days Legal terms: 60 days

Article D. 441 I.- 2° : Factures émises non réglées à la date de clôture de l'exercice dont le terme est échu
0 day (indicative)	1 to 30 days	31 to 60 days	61 to 90 days	Over 91 days	Over 1 day
(A) Late payment tranches
Number of invoices concerned	41	41	41	99	140
Total amount of invoices concerned including tax	1,585,502.59	49,156.15	609,233.17	905,231.20	3,149,123.11
Percentage of the total amount of purchases including tax during the financial year
Percentage of revenues including tax during the financial year	2.09%	0.06%	0.80%	1.19%
(B) Invoices excluded from (A) relating to debts and disputed receivables or not recognised in the books
Number of invoices excluded					N/A
Total number of invoices excluded					12,152,551.87
Reference payment terms used (contractual or legal - Article L. 441-6 or L. 43-1 of the French Commercial Code)
Payment terms used to calculate late payments			Contractual terms: monthly/quarterly Legal terms: Comments: no invoicing of late payment interest

1.5 Financial resources

1.5.1 Summary of the financial activity

Covivio is rated BBB+ with a stable outlook by S&P, confirmed on May 16 ^th 2023.

Covivio's Loan-to-Value (LTV) ratio was 40.8% (LTV policy < 40%), thanks to active portfolio rotation and despite value adjustments. Average cost of debt slightly increases to 1.50% (+26 bps vs end-2022), thanks to a highly hedged debt, and maturity of debt increased to 4.9 years (vs. 4.8 years in 2022).

The net available liquidity position doubled to €2.4 billion on a Group share basis at end-December 2023, including €1.6 billion of undrawn credit lines and €0.9 billion of cash minor by €0.1 billion of Commercial Paper. This strong liquidity position enables to cover debt expiries until Q1 2026.

1.5.2 Main debt characteristics

Group share	31/12/2022	31/12/2023
Net debt, Group share (€ million)	7,581	6,925
Average annual rate of debt	1.24%	1.50%
Average maturity of debt (in years)	4.8	4.9
Debt active average hedging rate	81.5%	92.3%
Average maturity of hedging (in years)	6.3	5.9
LTV including duties	39.5%	40.8%
ICR	6.9x	6.4x
Net debt/EBITDA	14.5x	12.8x

1.5.3 Debt by type

Covivio's net debt stands at €6.9 billion in Group share at end-December 2023 (€9.8 billion on a consolidated basis), down by -€0.7 billion compared to end-2022.

As regards commitments attributable to the Group, the share of corporate debt (bonds and loans) grows up to 60% on a Group share basis, at end-December 2023. Additionally, Covivio had €0.1 billion in commercial paper outstanding at 31 December 2023.

Consolidated commitments

By type

Consolidated commitments

By company

Group Share commitments

By type

Group Share commitments

By company

1.5.4 Debt maturity

The average maturity of Covivio's debt stands at 4.9 years at end-December 2023. Until 2024, there is no major maturity that has not already been covered or is already under renegotiation.

The next large maturities occur in 2024 and are mainly composed of a bond of €300 million (to be reimbursed) and a mortgage debt of €150 million Group share linked to the Telecom Italia portfolio.

In 2024 and 2025 debt expiries, approximately 17% of maturities (€313 million) relate to undrawn credit lines, mostly in France and Germany. 25% (€454 million) relate to bonds, and 58% (€1.1 billion) is comprised of bank mortgages that are well diversified in terms of asset class and geography: 26% in Germany offices, 30% in Germany residential, 11% in hotels, 16% in Italy Offices and 17% in France Offices. No single item of debt maturing before end-2025 exceeds €350 million.

Debt amortisation schedule by type

1.5.5 Hedging profile

In 2023, debt was hedged at 92% on average, and 88% on average over the next three years, all of which with maturities equivalent to or exceeding the debt maturity.

The average term of the hedges is 5.9 years Group share.

Hedging maturities

1.5.6 Average interest rate on debt and sensitivity

The average interest rate on Covivio's debt increased by 26 bps to 1.50% in Group share.

1.5.6.1 Financial structure

Excluding debts raised without recourse to the Group's property companies, the debts of Covivio and its subsidiaries generally include bank covenants (ICR and LTV) applying to the borrower's consolidated financial statements. If these covenants are breached, early debt repayment may be triggered. These covenants are established on a Group share basis for Covivio and Covivio Hotels.

―	The most restrictive consolidated LTV covenants amounted, at 31 December 2023, to 60% for Covivio and Covivio Hotels.
―	The most restrictive ICR consolidated covenants applicable to the REITs, at 31 December 2023, are of 200% for Covivio and Covivio Hotels.

With respect to Covivio Immobilien (German Residential), for which almost all of the debt raised is "non-recourse" debt, portfolio financings do not contain LTV or ICR consolidated financial covenants.

Lastly, with respect to Covivio, some corporate credit facilities are subject to the following ratios:

Ratio	Covenant threshold	31/12/2023
LTV	60.0%	43.8% ⁽¹⁾
ICR	2.00	6.41
Secured debt ratio	25.0%	4.1%

⁽¹⁾ Excluding duties and sales agreements

All covenants were fully complied with at year end-December 2023. No loan has an accelerated payment clause contingent on Covivio's rating, which is currently BBB+, Stable outlook (S&P rating) confirmed on 16 ^th May 2023.

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

Group share (In € million)	31/12/2022	31/12/2023
Net book debt	7,581	6,925
Receivables linked to associates (full consolidated)	-169	-187
Receivables on disposals	-16	15
Preliminary sale agreements	-228	-224
Purchase debt	54	33
Net debt	7,222	6,562
Appraised value of real estate assets (incl. duties)	18,151	15,948
Preliminary sale agreements	-228	-224
Financial assets	15	15
Receivables linked to associates (equity method)	86	68
Share of equity affiliates	282	260
Value of assets	18,306	16,067
LTV EXCLUDING DUTIES	41.5%	43.0%
LTV INCLUDING DUTIES	39.5%	40.8%

1.5.7 Reconciliation with consolidated accounts

1.5.7.1 Net debt

(In € million)	Consolidated accounts	Minority interests	Group share
Bank debt	10,707	-3,005	7,703
Cash and cash equivalents	901	-123	778
NET DEBT	9,807	-2,882	6,925

1.5.7.2 Portfolio

(In € million)	Consolidated accounts	Portfolio of companies under the equity method	Fair value of operating properties	Other assets held for sale	Right of use of investment properties	Minority interests
Investment & dev. properties	20,186	1,067	1,904	-13	-260	-7,912
Assets held for sale	327			-122		-96
TOTAL PORTFOLIO	20,513	1,067	1,904	-135	-260	-8,008

(In € million)	Group share
Investment & dev. properties	14,972
Assets held for sale	109
TOTAL PORTFOLIO	15,080

(+) Duties	807
(=) Portfolio Group share including duties	15,887
(-) portfolio of companies consolidated under the equity method	-412
(+) Fair value of trading activities	-257
(+) Other operating properties	730
PORTFOLIO FOR LTV CALCULATION	15,948

1.5.7.3 Interest Coverage Ratio

(In € million)	Consolidated accounts	Minority interests	Group share
EBITDA (net rents (-) operating expenses (+) results of other activities)	858	307	551
Cost of debt	151	65	86
ICR			6.41

1.6 EPRA reporting

The following reporting was prepared in accordance with EPRA (European Public Real Estate Association) Best Practices Recommendations, available on EPRA website (www.epra.com).

The German Residential information in the following sections includes some Office assets owned by the German Residential subsidiary Covivio Immobilien.

1.6.1 Change in net rental income (Group share)

(In € million)	2022	Acquis.	Disposals	Development	Indexation, asset management & occupancy	Others
France Offices	157	0	-12	1	5	0
Italy Offices (incl. retail)	91	0	-11	1	6	3
German Offices	32	0	0	0	3	3
Total Offices	280	0	-23	2	13	7
German Residential	167	1	-1	0	4	1
Hotels ⁽²⁾	103	0	-2	1	10	-3
Other (France Residential)	1	0	0	0	0	-1
TOTAL	550	1	-26	3	27	4

(In € million)	2023
France Offices	151
Italy Offices (incl. retail)	90
German Offices	38
Total Offices	278
German Residential	173
Hotels ⁽²⁾	109
Other (France Residential)	0
TOTAL	559

⁽¹⁾ Deliveries & vacating for redevelopment

⁽²⁾ Including Retail but excluding EBITDA from operating properties

Like-for-like revenue growth (including EBITDA from Hotels) was +6.4% in 2023.

Reconciliation with financial data	2023
Total from the table of changes in Net rental Income (GS)	559
Adjustments	0
TOTAL NET RENTAL INCOME GROUP SHARE (FINANCIAL DATA § 1.4.1.3)	559
Minority interests	305
TOTAL NET RENTAL INCOME AT 100% (FINANCIAL DATA § 1.4.1.4)	863

1.6.2 Investment assets - Information on leases

Annualized rental income corresponds to the gross amount of guaranteed rent for the full year based on existing assets at the period end, excluding any incentives.

―	Vacancy rate at end of period = Market rental value on vacant assets / Contractual annualized rents on occupied assets + Market rental value on vacant assets

―	EPRA vacancy rate at end of period = Market rental value on vacant assets / Market rental value on occupied and vacant assets

Group share (In € million)	Gross rental income (€m)	Net rental income (€m)	Annualised rents (€m)	Surface (m ² )	Average rent (€/m ² )	Vacancy rate (excl. secured area) (%)
France Offices	168	151	190	978,119	250	5.9%
Italy Offices (incl. retail)	104	90	118	726,488	202	1.3%
German Offices	44	38	51	364,644	156	13.6%
Total Offices	315	278	358	2,069,251	217	5.5%
German Residential	190	173	189	2,827,395	104	0.9%
Hotels ⁽²⁾	110	109	112	n.c	n.c	-
TOTAL ⁽¹⁾	616	559	660	4,896,646	151	3.3%

Group share (In € million)	ERV of spot vacant space (€m)	ERV of the whole portfolio (€m)	EPRA vacancy rate (%)
France Offices	22	215	10.1%
Italy Offices (incl. retail)	2	122	1.4%
German Offices	8	55	15.2%
Total Offices	32	393	8.1%
German Residential	2	188	0.9%
Hotels ⁽²⁾	-	112	-
TOTAL ⁽¹⁾	34	693	4.8%

⁽¹⁾ Incl. French residential and others

⁽²⁾ Incl. Retail & excl. EBITDA from operating properties.

The vacancy rate (3.3%) is including secured areas for which lease will start soon, while the EPRA vacancy rate (4.8%) is spot, at 31 December 2023.

Regarding the German Residential, the ERV doesn't include the potential reversion in all our markets Berlin (25-30%), Hamburg (20-25%), Dresden and Leipzig (10-20%) and in North Rhine-Westphalia (20-25%).

Average metric rents are computed on total surfaces, including land banks and vacancy on development projects.

1.6.3 Investment assets - Portfolio value

Group share (In € million)	Market value	Change in fair value over the year	Duties	EPRA NIY
France Offices	4,117	-699	193	4.3%
Italy Offices (incl. Retail)	2,491	-83	84	4.4%
German Offices	1,239	-238	67	3.6%
Total Offices	7,847	-1,020	345	4.2%
German Residential	4,672	-653	335	3.5%
Hotels (incl. Retail)	2,557	-78	94	5.5%
Other (France Resi. and car parks)	4	-	-	n.a.
TOTAL 2023	15,080	-1,752	773	4.2%

The change in fair value over the year presented above excludes change in value of operating properties, Hotel Operating properties, and assets under the equity method.

―	The EPRA net initial yield is the ratio of:

EPRA NIY = Annualised rental income after deduction of outstanding benefits granted to tenants (rent-free periods, rent ceilings) - unrecovered real estate expenses for the year / Value of the portfolio including duties

1.6.3.1 Reconciliation with financial data

(In € million)	2023
TOTAL PORTFOLIO VALUE (GROUP SHARE, MARKET VALUE)	15,080
Fair value of the operating properties	-1,084
Fair value of companies under equity method	-412
Other assets held for sale	3
Right of use on investment assets	122
Fair value of car parks facilities	-3
Tangible fixed assets	125
INVESTMENT ASSETS GROUP SHARE ^* (FINANCIAL DATA§ 1.4.1.5)	13,831
Minority interests	6,682
INVESTMENT ASSETS 100% (FINANCIAL DATA§ 1.4.1.6)	20,513

^* Fixed assets + Developments assets + asset held for sale

1.6.3.2 Reconciliation with IFRS

(In € million)	2023
Change in fair value over the year (Group share)	-1,752
Others	-
INCOME FROM FAIR VALUE ADJUSTMENTS GROUP SHARE (FINANCIAL DATA § 1.4.1.3)	-1,752
Minority interests	-685
INCOME FROM FAIR VALUE ADJUSTMENTS 100% (FINANCIAL DATA § 1.4.1.4)	-2,437

1.6.4 Assets under development

	Own. type	% ownership (Group share)	Fair value Dec. 2023	Capitalised fin. expenses over the year	Total cost ⁽¹⁾ (€m, Group share)	% progress
Meudon Atlas	FC ⁽³⁾	100%		0	204	6%
Paris Grands Boulevards	FC	100%		1	153	10%
Paris Monceau	FC	100%		2	249	11%
Total France Offices			266	3	606	9%
The Sign D	FC	100%		1	76	47%
Corte Italia	FC	100%		2	125	39%
Rozzano - Strada 8	FC	100%		1	44	73%
Symbiosis G+H	FC	100%		2	198	34%
Total Italy Offices			262	5	443	41%
Düsseldorf Icon	FC	94%		2	261	13%
Berlin Alexanderplatz	FC	55%		3	355	31%
Total German Offices			326	5	616	24%
TOTAL			854	13	1,665	23%

	Delivery date	Surface at 100% (m ² )	% Pre-letting	Yield ⁽²⁾ (%)
Meudon Atlas	2026	38,000m ²	100%	7.8%
Paris Grands Boulevards	2027	7,500m ²	0%	4.5%
Paris Monceau	2025	11,200m ²	0%	4.4%
Total France Offices		56,700m ²	47%	5.6%
The Sign D	2024	13,200m ²	92%	6.1%
Corte Italia	2025	25,700m ²	100%	5.9%
Rozzano - Strada 8	2024	12,100m ²	47%	7.9%
Symbiosis G+H	2025	38,000m ²	100%	6.4%
Total Italy Offices		89,000m ²	92%	6.3%
Düsseldorf Icon	2025	55,700m ²	55%	5.0%
Berlin Alexanderplatz	2027	60,000m ²	0%	4.4%
Total German Offices		115,700m ²	25%	4.6%
TOTAL		261,400M ²	54%	5.4%

⁽¹⁾ Total cost including land and financial cost

⁽²⁾ Yield on total cost (3)FC: Full consolidation.

1.6.4.1 Reconciliation with total committed pipeline

Group share (in € million)	Capitalised fin. expenses over the year	Total cost incl. fin. cost (Group share)
Projects fully consolidated	13	1,665
Others (Loft)	0	26
TOTAL OFFICES COMMITTED PIPELINE	13	1,691
German Residential	1	73
French Residential	0	152
TOTAL COMMITTED PIPELINE	14	2,028

1.6.4.2 Reconciliation with financial data

Group share (in € million)	2023
Total fair value of assets under development	854
Project under technical review and non-committed projects	154
ASSETS UNDER DEVELOPMENT (FINANCIAL DATA § 1.4.1.5)	1,007

1.6.5 Information on leases

			Lease expiration by date of 1 ^st exit option Annualised rental income of leases expiring
	Firm residual lease term (years)	Residual lease term (years)	N+1	N+2	N+3 to 5	Beyond
France Offices	5.0	5.6	10%	22%	25%	43%
Italy Offices (incl. retail)	6.3	6.9	3%	11%	25%	61%
Germany Offices	4.2	4.6	23%	19%	25%	33%
Total Offices	5.4	5.9	10%	18%	25%	48%
Hotels (incl. retail)	12.2	13.9	4%	2%	3%	90%
Others ⁽²⁾	n.a	n.a	n.a	n.a	n.a	n.a
TOTAL ⁽¹⁾	7.0	7.8	6%	9%	13%	71%

	Total (€m)	Section
France Offices	190
Italy Offices (incl. retail)	118
Germany Offices	51
Total Offices	358	1.3.1
Hotels (incl. retail)	112	1.3.3
Others ⁽²⁾	223
TOTAL ⁽¹⁾	693

⁽¹⁾ Percentage of lease expiries on total revenues.

⁽²⁾ German Residential, Hotels EBITDA and Others

In 2024, 5.7% of total leases are expiring: 3.6% have no intention to vacate the property and 0.4% are going to be redeveloped. That leads the unsecured part to 1.7%, for which tenant decision is not yet known.

1.6.6 EPRA Net Initial Yield

The data below shows detailed yield rates for the Group and the transition from the EPRA topped-up yield rate to Covivio's yield rate.

―	EPRA topped-up net initial yield is the ratio of:

EPRA Topped-up NIY = Annualised rental income after expiration of outstanding benefits granted to tenants (rent-free periods, rent ceilings) - unrecovered real estate expenses for the year / Value of the portfolio including duties

―	EPRA net initial yield is the ratio of:

EPRA NIY = Annualised rental income after deduction of outstanding benefits granted to tenants (rent-free periods, rent ceilings) - unrecovered real estate operating expenses for the year / Value of the portfolio including duties

Group share (in € million) Excluding French Residential and car parks	Total 2022	France Offices	Italy Offices (incl. Retail)	German Offices	German Residential	Hotels (incl. Retail)
Investment, disposable and operating properties	17,394	4,117	2,491	1,239	4,672	2,557
Restatement of assets under development	-1,371	-329	-299	-353	-25	-
Restatement of undeveloped land and other assets under development	-333	-161	-108	-12	-0	-14
Duties	918	193	84	67	335	94
Value of assets including duties (1)	16,608	3,820	2,168	941	4,981	2,637
Annualised gross IFRS revenues	653	182	110	40	189	148
Irrecoverable property charge	-63	-17	-15	-5	-16	-1
Annualised net revenues (2)	590	164	95	34	174	146
Rents upon expiration of rent free periods or other rent reductions	34	17	8	6	-	0
Annualised topped-up net revenues (3)	624	182	103	40	174	146
EPRA Net Initial Yield (2)/(1)	3.6%	4.3%	4.4%	3.6%	3.5%	5.5%
EPRA "Topped-up" Net Initial Yield (3)/(1)	3.8%	4.8%	4.8%	4.3%	3.5%	5.6%
Transition from EPRA topped-up NIY to Covivio yield
Impact of adjustments of EPRA rents	0.4%	0.5%	0.7%	0.4%	0.3%	0.1%
Impact of restatement of duties	0.2%	0.3%	0.2%	0.4%	0.3%	0.2%
COVIVIO REPORTED YIELD RATE	4.4%	5.5%	5.6%	5.2%	4.1%	5.8%

Group share (in € million) Excluding French Residential and car parks	Total 2023
Investment, disposable and operating properties	15,076
Restatement of assets under development	-1,007
Restatement of undeveloped land and other assets under development	-295
Duties	773
Value of assets including duties (1)	14,547
Annualised gross IFRS revenues	668
Irrecoverable property charge	-54
Annualised net revenues (2)	614
Rents upon expiration of rent free periods or other rent reductions	32
Annualised topped-up net revenues (3)	645
EPRA Net Initial Yield (2)/(1)	4.2%
EPRA "Topped-up" Net Initial Yield (3)/(1)	4.4%
Transition from EPRA topped-up NIY to Covivio yield
Impact of adjustments of EPRA rents	0.4%
Impact of restatement of duties	0.3%
COVIVIO REPORTED YIELD RATE	5.1%

1.6.7 EPRA cost ratio

Group share (In € million)	2022	2023
Unrecovered Rental Cost	-35.2	-32.0
Expenses on properties	-21.5	-22.7
Net losses on unrecoverable receivables	0.2	-2.1
Other expenses	-6.0	-5.7
Overhead	-105.1	-103.9
Amortisation, impairment, and net provisions	3.1	4.5
Income covering overheads	28.1	25.3
Cost of other activities and fair value	-6.3	-5.5
Property expenses	-0.4	-1.1
EPRA costs (including vacancy costs) (A)	-143.0	-143.2
Vacancy cost	21.5	21.5
EPRA costs (excluding vacancy costs) (B)	-121.5	-121.8
Gross rental income less property expenses	607.2	616.7
EBITDA from Hotel Operating properties & coworking, income from other activities	100.3	88.9
Gross rental income (C)	707.5	705.6
EPRA costs ratio (including vacancy costs) (A/C)	-20.2%	-20.3%
EPRA costs ratio (excluding vacancy costs) (B/C)	-17.2%	-17.3%

1.6.8 Adjusted EPRA Earnings: growing to €435.4 million

(In € million)	2022	2023
NET INCOME GROUP SHARE (FINANCIAL DATA §3.3)	620.7	-1,418.8
Change in asset values	119.5	1,751.8
Income from disposal	-15.8	35.4
Acquisition costs for shares of consolidated companies	0.4	2.0
Changes in the value of financial instruments	-371.9	132.4
Interest charges related to finance lease liabilities (leasehold > 100 years)	4.6	4.6
Rental costs (leasehold > 100 years)	-3.3	-3.3
Deferred tax liabilities	75.2	-156.6
Taxes on disposals	2.1	8.0
Adjustment to amortisation and provisions	21.4	26.4
Adjustments from early repayments of financial instruments	1.6	1.1
EPRA Earnings adjustments for associates	-24.3	52.2
Adjusted EPRA Earnings (B)	430.2	435.4
Adjusted EPRA Earnings in €/share (B)/(C)	4.58	4.47
Promotion margin	-15.3	-5.7
EPRA EARNINGS (A)	414.9	429.7
EPRA EARNINGS IN €/SHARE (A)/(C)	4.42	4.41
Average number of shares (C)	93,955,927	97,487,850

1.6.9 EPRA NRV, EPRA NTA and EPRA NDV

	2022	2023	Var.	Var. (%)
EPRA NRV (€m)	11,040	9,327	-1,712	-15.5%
EPRA NRV/share (€m)	117.0	92.6	-24.4	-20.9%
EPRA NTA (€m)	10,044	8,470	-1,573	-15.7%
EPRA NTA/share (€m)	106.4	84.1	-22.3	-21.0%
EPRA NDV (€m)	10,172	8,401	-1,771	-17.4%
EPRA NDV/share (€m)	107.8	83.4	-24.4	-22.6%
Number of shares	94,385,959	100,658,623	6,272,664	+6.6%

1.6.9.1 Reconciliation between shareholder's equity and EPRA NAV

	2022 (€m)	2022 (€ per share)	2023 (€m)	2023 (€ per share)
Shareholders' equity	9,443	100.0	7,957	79.0
Fair value assessment of operating properties	227		175
Duties	918		807
Financial instruments and ORNANE	-334		-235
Deferred tax liabilities	786		623
EPRA NRV	11,040	117.0	9,327	92.6
Restatement of value Excluding Duties on some assets	-884		-773
Goodwill and intangible assets	-68		-68
Deferred tax liabilities	-44		-16
EPRA NTA	10,044	106.4	8,470	84.1
Optimization of duties	-34		-34
Intangible assets	17		18
Fixed-rate debts ⁽¹⁾	553		318
Financial instruments and ORNANE	334		235
Deferred tax liabilities	-742		-607
EPRA NDV	10,172	107.8	8,401	83.4

⁽¹⁾ Excluding credit spread impact of €+7 million.

Valuations are carried out in accordance with the Code of Conduct applicable to SIICs and the Charter of Property Valuation Expertise, the recommendations of the COB/CNCC working group chaired by Mr Barthès de Ruyter and the international plan in accordance with the standards of the International Valuation Standards Council (IVSC) and those of the Red Book of the Royal Institution of chartered Surveyors (RICS).

The real estate portfolio held directly by the Group was valued on 31 December 2023 by independent real estate experts such as Cushman, REAG, CBRE, HVS, JLL, BNPP Real Estate, MKG and CFE. This did not include:

―	assets on which the sale has been agreed, which are valued at their agreed sale price
―	assets owned for less than 75 days, for which the acquisition value is deemed to be the market value.

Assets were estimated at values excluding and/or including duties, and rents at market value. Estimates were made using the comparative method, the rent capitalisation method and the discounted future cash flow method.

Other assets and liabilities were valued using the principles of the IFRS standards on consolidated financial statements. The application of fair value essentially concerns the valuation of debt coverages.

For companies co-owned with other investors, only the Group share was considered.

1.6.9.1.1 Fair value assessment of operating properties

In accordance with IFRS, operating properties are valued at historical cost. To take into account the appraisal value, a €175 million value adjustment was recognised in EPRA NRV, NDV, NTA related to:

―	co-working and operating hotel properties for €141 million
―	own-occupied buildings for €31 million
―	car parks for €3 million

1.6.9.1.2 Fair value adjustment for fixed-rate debts

The Group has taken out fixed-rate loans (secured bond and private placement). In accordance with EPRA principles, EPRA NDV was adjusted for the fair value of fixed-rate debt. The impact is +€318 million at 31 December 2023.

1.6.9.1.3 Recalculation of the base cost excluding duties of certain assets

When a company, rather than the asset that it holds, can be sold, transfer duties are re-calculated based on the company's net asset values (NAV). The difference between these re-calculated duties and the transfer duties already deducted from the value had an impact of €33.7 million at 31 December 2023.

1.6.9.1.4 Deferred tax liabilities

The EPRA NTA assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax.

For this purpose, the Group uses the following method:

―	Offices: takes into account 50% of deferred tax considering the regular asset rotation policy
―	Hotels: takes into account deferred tax on the non-core part of the portfolio, expected to be sold within the next few years
―	Residential: includes the deferred tax linked to the building classified as Assets available held for sale, considering the low level of asset rotation in this activity.

1.6.10 Capex by type

	2022		2023
(In € million)	100%	Group share	100%	Group share
Acquisitions ⁽¹⁾	58	35	-	-
Developments	239	155	196	156
Investment Properties	241	161	223	153
Capitalized expenses on development portfolio ⁽²⁾ (except under equity method)	38	30	34	32
TOTAL	577	381	453	341

⁽¹⁾ Acquisitions incl. duties

⁽²⁾ Marketing fees, financial expenses and other capitalised expenses

The €156 million Group share of Development Capex relates to renovation expenses on development projects (excluding properties under equity method and assets under operation but including Capex on assets delivered over the year until delivery date).

The €153 million Group share of Capex on Investment Properties is mainly composed of:

―	€33 million on offices including tenant improvement, green Capex to enhance the value on strategic offices
―	€9 million of modernisation Capex on hotels, with the aim to improve the quality of assets and benefit from increased revenues and performance
―	€76 million of modernization & maintenance Capex on German Residential of which 2/3 modernization, generating revenues.

1.6.11 EPRA LTV

EPRA LTV		Proportionate Consolidation
At 31/12/2023 Group share (In € million)	Group (€million) as reported	Share of Joint Ventures	Share of Material Associates	Non-controlling	Combined
Include:
Borrowings from Financial Institutions	5,720	182		-2,316	3,586
Commercial paper	260			-120	140
Hybrids (including Convertibles, preference shares, debt, options, perpetuals)	-				-
Bond Loans	4,444			-533	3,911
Foreign Currency Derivatives (futures, swaps, options and forwards)					0
Net Payables	42			-42	0
Owner-occupied property (debt)					0
Current accounts (Equity characteristic)					0
Exclude:
Cash and cash equivalents	901	31		-138	794
Net Debt (A)	9,565	151		-2,873	6,843
Include:
Owner-occupied property	1,976	10		- 834	1,152
Investment properties at fair value	18,786	461		- 6,542	12,705
Properties held for sale	314	-		- 90	224
Properties under development	1,140	-		- 133	1,007
Intangibles	-	-		-	-
Net Receivables	-	4		36	40
Financial assets	373	-		- 149	224
Total Property Value (B)	22,589	475	0	- 7,712	15,352
Real Estate Transfer Taxes	1,163			- 356	807
Total Property Value (incl. RETTs) (C)	23,752	475	0	-8,067	16,159
LTV (A/B)	42.3%				44.6%
LTV (INCL. RETTS) (A/C) (OPTIONAL)	40.3%				42.3%
EPRA LTV					44.6%
Duties					-2.2%
Preliminary Agreements					-0.8%
Other effects (including conso. restatements)					-0.7%
LTV INCLUDING DUTIES					40.8%

1.6.12 EPRA performance indicator reference table

EPRA information	Section	in %	Amount (in €m)	Amount (in €m/share)
Recurring net income	1.6.8	-	€429.7m	€4.41/share
Adjusted EPRA Earnings	1.6.8	-	€435.4m	€4.47/share
EPRA NRV	1.6.9	-	€9,327m	€92.6/share
EPRA NTA	1.6.9	-	€8,470m	€84.1/share
EPRA NDV	1.6.9	-	€8,401m	€83.4/share
EPRA net initial yield	1.6.6	4.2%	-	-
EPRA topped-up net initial yield	1.6.6	4.4%	-	-
EPRA vacancy rate at year-end	1.6.2	4.8%	-	-
EPRA costs ratio (including vacancy costs)	1.6.7	-20.3%	-	-
EPRA costs ratio (excluding vacancy costs)	1.6.7	-17.3%	-	-
EPRA LTV	1.6.11	44.6%
EPRA indicators of main subsidiaries	1.6.13	-	-	-

1.6.13 Financial indicators of the main activities

	Covivio Hotels			Covivio Immobilien
	2022	2023	Change (%)	2022	2023	Change (%)
EPRA Earnings for the year (€m)	220.9	238.8	+8.1%	166.3	152.6	-8.2%
EPRA NRV	4,105	3,915	-4.6%	5,733	4,756	-17.1%
EPRA NTA	3,722	3,550	-4.6%	5,199	4,262	-18.0%
EPRA NDV	3,763	3,512	-6.7%	4,574	3,682	-19.5%
% of capital held by Covivio	43.9%	43.9%	-	61.7%	61.7%	-
LTV including duties	35.0%	34.4%	-0.6pts	31.7%	35.2%	+3.5pts
ICR	6.0x	5.4x	-6x	7.3x	4.5x	-2.8x

1.7 Real estate appraisals

1.7.1 Asset valuation method

The overall portfolio is appraised by independent experts on a half-yearly basis (30 June and 31 December), and according to the calculation methods determined by an internal set of specifications based on the guidelines of the oversight bodies:

―	recommendation of the French Financial Markets Authority (Autorité des Marchés Financiers - AMF);
―	instructions from the COB report of 3 February 2000 on real estate appraisals ("report from the Working Group on expert appraisals of the real estate portfolios of companies issuing public calls for savings" chaired by Georges Barthès de Ruyter).

Covivio also abides by the Listed Real Estate Investment company (SIIC) Code of Ethics applicable to FSIF (Fédération des Sociétés Immobilières et Foncières) member companies, particularly in terms of real estate appraisals.

Moreover, the real estate experts selected, namely BNP Real Estate Valuation, Cushman & Wakefield, JLL Expertises and CBRE Valuation, are all members of the AFREXIM (Association Française des Experts Immobiliers - French Association of Real Estate Appraisers), and, as such, are governed by the real estate appraisal charter approved by AFREXIM. As a result of this, the experts adhere to the various French standards. Their valuation methods comply with the RICS and IVSC international Codes of Conduct.

Each asset is subject to a complete appraisal at the time of its acquisition, or when there is a change of appraiser. Values are then updated through interim appraisals, sometimes involving asset inspections. Assets are subject to a complete appraisal every five years.

A complete appraisal consists of:

―	preparation of a file including the legal, technical and financial documents required to objectively analyse the factors that enhance or reduce the value of the assets under consideration;
―	an internal visit to the sites and their environment;
―	research and analysis of comparison factors;
―	drafting of a report in which the final appraisal must be consistent with the aforementioned observations, and a relevant analysis of the category market in question.

1.7.1.1 Income capitalisation method

This approach involves recognising the revenues produced or capable of being produced by an asset and capitalising them at an appropriate rate. This rate is derived from the revenues recognised, the asset's features, and its foreseeable potential. It is based on the analysis of other rental properties and should be viewed as a whole from a general context of revenues expected from various investments in a given economic environment.

The main criteria for choosing rates of return are as follows:

―	geographic location;
―	age and condition of the property complex;
―	possibility of converting the property complex;
―	size and profitability of the establishment.

1.7.1.2 Discounted cash flow (DCF) method

This method takes into consideration future revenue, including recognised rental income, expected rental income, works that are the contractual responsibility of the lessor and residual gains from any sale at the end of the holding period. It consists of discounting to present value the cash flows generated by the asset and adding in the present exit value of the assets in the last year.

In the case of an asset that is under development meeting the IAS 40 standard and subject to an appraisal, Covivio integrates a disbursement for future works in its cash flow.

1.7.1.3 Unit-value comparison method

This method consists in referring to the sale prices found on the market for equivalent assets. The comparison factors used derive specifically from internal databases in which each reference is analysed, classified by situation and by category, and expressed in gross surface units or weighted surface units.

It is more a method of cross-checking the two methods described above than a principal method.

1.7.2 Appraiser remuneration at Covivio level

Appraisers (in € - 100% - excl. tax)	2022 Total	(in %)
CBRE	639,949	43%
Cushman	255,430	17%
BNPP Real Estate	303,550	20%
CFE (BPCE)	110,540	7%
COLLIERS	101,174	7%
MKG	60,860	4%
JLL	15,200	1%
TOTAL	1,486,703	100%

1.7.3 Abridged experts' report on the appraisal at the end of 2023 of the market value of the France Offices and German Residential portfolios

1.7.3.1 General background on the appraisals

1.7.3.1.1 General framework

Covivio requested, under the terms of appraisal contracts, that appraisals of the fair value of their portfolio assets be completed as part of the half-year valuation of the portfolio. These appraisals were conducted with complete independence.

The appraisal companies Cushman & Wakefield, CBRE Valuation, BNP Paribas Real Estate Valuation and JLL Expertises have no capital ties with Covivio and certify that the appraisals were performed by and under the responsibility of qualified appraisers.

The annual fees billed to Covivio are determined before the appraisal. They account for less than 10% of the revenues of each appraisal company. The rotation of the appraisers is organised by Covivio. We have not identified any conflict of interest in this appraisal.

The assignment is in compliance with the AMF recommendation concerning the presentation of the real estate asset valuation for listed companies published on 8 February 2010.

Covivio Immobilien SE requested, under the terms of appraisal contracts or amendments, that CBRE appraise the fair value of the assets in its Germany portfolio. This request was part of the half-year valuation of its portfolio. The annual fees billed to Covivio Immobilien SE are determined before the appraisal. They account for less than 10% of the revenues of each appraisal company. Covivio Immobilien SE rotates the appraisers.

1.7.3.1.2 Current assignment

In France Offices, the assignment focused on the appraisal of the fair value of 95 assets in the France Offices portfolio. For this assignment, Covivio requested initial appraisals or updates based on documentation when the assets where first appraised less than five years ago.

The assignment was to estimate the fair value with the occupancy rate announced at 31 December 2023.

The appraised assets are located in the national territory. These are investment properties that are either fully owned or under construction lease by Covivio. The assets in the various portfolios are leased to various tenants under commercial lease arrangements with (or without) firm 3-year, 6-year, 9-year or 12-year leases or exceptional leases.

It should be noted here that, when the company is the tenant under the terms of a financial lease, the appraiser values only the assets underlying the contract, and not the financial lease contract itself. In the same way, when a real estate asset is held by a special purpose entity, its value was estimated on the assumption of the sale of the underlying real estate asset, and not the sale of the company.

In German Residential, the appraisers were tasked with assessing the fair value of 1,243 assets (41,067 units) in Germany. For this assignment, Covivio Immobilien SE asked the appraisers to carry out initial appraisals or updates based on documentation when the assets were first appraised less than five years ago. The appraisers' assignment was to estimate the fair value with the occupancy rate announced at 30 September 2023. The assets appraised are located in Germany. They are primarily assets that are wholly owned by Covivio Immobilien SE or by its subsidiaries. They largely consist of residential assets. The assets are rented to many tenants, mainly under residential leases.

1.7.3.2 Conditions of performance

1.7.3.2.1 Documents examined

This assignment was conducted on the basis of the documents and information provided, all of this information being assumed to be accurate and to represent all of the information and documents in the possession of, or known to, the principal, which could have an impact on the fair value of the portfolio. Accordingly, title deeds and zoning certificates are not examined.

In German Residential, the appraisal work described above was done based on the documentation and information provided to the appraisers in October 2023.

1.7.3.2.2 Reference standards

The appraisals and valuations were completed in accordance with:

―	the recommendations of the Barthès de Ruyter report on the valuation of real estate portfolios of listed/publicly traded companies, published in February 2000;
―	the Charter for Expert Appraisal in Real Estate Valuation;
―	the principles enshrined in the Code of Ethics for Listed Real Estate Investment Companies (SIICs) and by the Royal Institution of Chartered Surveyors RED BOOK 2014;
―	the International Valuation Standards promoted by the International Valuation Standards Council (IVSC);
―	the IAS/IFRS 40 and IFRS 13 standards. ⁽¹⁾

In addition, following the foregoing standard, a classification of the fair value of the assets held by the company was performed. In order to increase the consistency and comparability of fair value appraisals and the related information to be provided, IFRS 13 outlines a hierarchy that it ranks according to three levels of importance of the inputs of the valuation techniques used to determine the fair value.

This hierarchy ranks listed prices (unadjusted) on active markets for identical assets or liabilities (level 1 input) at the highest level, and unobservable inputs (level 3 inputs) at the lowest level.

The fair value obtained is classified overall at the same hierarchical level as the lowest level of input that is significant for determining its overall fair value. Any significant appreciation of an input determined for the overall fair value requires the exercise of judgement and takes into account factors specific to the asset or the liability.

1.7.3.2.3 Methodology used

For the investment assets making up the various portfolios, the appraisers used the discounted cash flow method and the yield method (capitalisation of revenues), with cross-checking by direct comparison.

In German Residential, for the assets making up the various portfolios, i.e. investment assets, we used the discounted cash flow method.

1.7.3.3 Overview of the valuation of the France offices portfolio at year-end 2023

Covivio holds 95 office assets at the end of 2023, all recognised at their appraisal value.

	Paris	Île-de-France - Other	Area	Total
Offices	Fair value 100%	Fair value 100%	Fair value 100%	Fair value 100%	% total
BNPP Real Estate	932,977,744	1,269,101,366	70,990,000	2,273,069,110	44%
Cushman & Wakefield	785,800,000	473,500,000	9,686,000	1,268,986,000	25%
CBRE	822,738,018	193,940,000	557,244,720	1,573,922,738	31%
JLL	-	-	9,420,000	9,420,000	%
TOTAL PORTFOLIO APPRAISED	2,541,515,762	1,936,541,366	647,340,720	5,125,397,848	100%
Assets under preliminary sale agreements	-	-	-	-	-
Assets measured internally	-	-	-	-	-
TOTAL PORTFOLIO	2,541,515,762	1,936,541,366	647,340,720	5,125,397,848	100%

1.7.3.3.1 Summary by appraisers

Appraisers	Number of assets	Fair value 100% Excluding Duties	Fair value Group Share Excluding Duties
BNPP Real Estate	27	2,273,069,110	1,828,044,232
Cushman & Wakefield	23	1,268,986,000	1,085,074,800
CBRE	38	1,573,922,738	1,309,102,428
JLL	7	9,420,000	9,420,000
TOTAL PORTFOLIO	95	5,125,397,848	4,231,641,460

⁽¹⁾ In accordance with IFRS 13 applicable at the latest to periods starting as of 1 January 2013, the assets held by Covivio in France and in Germany were appraised at their fair value, which corresponds to the "price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date".

1.7.3.3.2 General observations

These values are understood as being based on the market remaining stable and no significant changes occurring to the assets between the appraisal date and the value date.

This abridged report cannot be taken separately from all the work performed as part of the appraisals, especially the summarised or detailed reports associated with them.

Each of the four appraisers confirms the values of the assets where they themselves performed the appraisal or update, without assuming responsibility for those performed by the other appraisal companies.

1.7.3.4 Summary of valuation of the Covivio Immobilien SE portfolio at the end of 2023

	Appraised value	Fair value	% total
Berlin	4,223,068,000	4,237,121,001	57.4%
Dresden & Leipzig	583,840,000	583,840,000	7.9%
Hamburg	535,670,000	535,670,000	7.2%
North Rhine-Westphalia	2,029,038,500	2,030,121,625	27.5%
TOTAL	7,371,616,500	7,386,752,627	100%

The difference between the value provided by the appraisers and the fair value results from the impact of sales and preliminary sales agreements as well as development projects valued at cost.

1.7.3.4.1 Summary by appraiser

Appraisers	Number of units	Appraised value 100% Excluding Duties	Fair value 100% Excluding Duties	Fair value Group Share Excluding Duties
BRE	41,067	7,371,616,500	7,386,752,627	6,793,958,806

CBRE appraised 41,067 units ⁽¹⁾ owned by Covivio Immobilien SE including 39,449 residential units.

1.7.3.4.2 General observations

The values presented by the appraisers are understood as being based on the market remaining stable and no significant changes occurring to the assets between the appraisal date and the value date.

⁽¹⁾ In addition, 942 miscellaneous assets (ATMs, advertising spaces)/ 6,958 internal parking spaces/3,345 external parking spaces.

1.8 Portfolio list

1.8.1 France Offices

Area	Surface area at 100%
Core assets under operation	789,126
Paris	184,350
Western Crescent and La Défense	120,782
Inner rim	336,530
Outer rim	5,152
Major regional cities	142,313
Lyon	51,220
Bordeaux	18,462
Marseille	11,258
Lille	11,201
Montpellier	21,769
Nantes	14,922
Toulouse	4,436
Metz	9,045
Assets under development	140,358
Non-core assets	90,306

List of core assets and development projects: 98% of the France Offices portfolio, Group Share

Name	% ownership	Address	Postal Code
Assets in operation
PARIS / ART&CO	100%	15/17 RUE TRAVERSIERE	75012
PARIS / ATELIER	100%	11 R EDIMBOURG	75008
PARIS / CAP 18	100%	189 RUE D'AUBERVILLIERS 73 RUE DE L'EVANGILE	75018
PARIS / CHERCHE-MIDI	100%	37 RUE DU CHERCHE MIDI	75006
PARIS / GOBELINS	100%	40 BD PORT ROYAL	75005
PARIS / JEAN GOUJON	100%	19-21 rue Jean Goujon	75008
PARIS / LOUVRE	100%	55/57 RUE J.J. ROUSSEAU	75001
PARIS / MAILLOT	100%	18 RUE GUSTAVE CHARPENTIER	75017
PARIS / MENILMONTANT	100%	26 RUE SORBIER	75020
PARIS / MONTMARTRE	100%	114 RUE MARCADET	75018
PARIS / N2 BATIGNOLLES	50%	ZAC Clichy Batignolles	75017
PARIS / PERCIER	100%	5/7 AVENUE PERCIER	75008
PARIS / PHILIPPE AUGUSTE	100%	42/46 AVENUE PHILIPPE AUGUSTE	75011
PARIS / QUAI DE JEMMAPES	100%	103/107 BD VILLETTE	75010
PARIS / STEEL	100%	29 RUE DES SABLONS	75016
PARIS / THE LINE	100%	11 AVENUE DELCASSE	75008
PARIS / VOLTAIRE	100%	6/10 PAS ST PIERRE AMELOT	75011
Total Paris
BOULOGNE / GRENIER	100%	32 AVENUE P.GRENIER	92100
BOULOGNE/MOLITOR	100%	25 BIS AVENUE ANDRÉ MORIZET	92100
ISSY-LES-MOULINEAUX/ATLANTIS	100%	11 RUE CAMILLE DESMOULINS	92130
LA DEFENSE/CB 21	75%	16 PLACE DE L'IRIS	92400
LEVALLOIS-PERRET/MASLO	100%	35, rue Baudin	92300
LEVALLOIS-PERRET/THAIS	100%	25/27/29 RUE ANATOLE FRANCE	92300
NANTERRE/ROUSSEAU	100%	40 RUE J.J. ROUSSEAU	92000
Total Western Crescent & La Defense
SAINT OUEN/SO POP	50%	65 rue Arago	93400
CHÂTILLON/IRO	100%	82-90 RUE PIERRE SÉMARD	92320
MONTROUGE/FLOW	100%	58/60 AVENUE DE LA MARNE / 165/173 AVENUE PIERRE BROSSOLETTE	92120
ORLY/CDO ASKIA BUREAUX	50%	BAT 3 "ASKIA"	94310
ORLY/CDO ASKIA COMMERCES	50%	2-4-6-8 PROMENADE D'ORLY	94310
ORLY/CŒUR D'ORLY BELAÏA	50%	CŒUR D'ORLY	94310
SAINT-DENIS/PLEYEL	100%	171-175 BOULEVARD ANATOLE FRANCE	93200
SAINT OUEN/VICTOR HUGO BAT 1	100%	69-73 BOULEVARD VICTOR HUGO	93400
SAINT OUEN/VICTOR HUGO BAT 2-5-6-7	100%	69-73 BOULEVARD VICTOR HUGO	93400
SAINT OUEN/VICTOR HUGO BAT 3	100%	69-73 BOULEVARD VICTOR HUGO	93400
SAINT OUEN/VICTOR HUGO BAT 4	100%	69-73 BOULEVARD VICTOR HUGO	93400
VÉLIZY/DASSAULT CAMPUS BAT (ABCD)	50%	10 RUE MARCEL DASSAULT	78140
VÉLIZY/DASSAULT CAMPUS BOIS BAT (G)	50%	10 RUE MARCEL DASSAULT	78140
VÉLIZY/DASSAULT CAMPUS + EXTENSION	50%	10 RUE MARCEL DASSAULT	78140
VÉLIZY/THALES HELIOS 1	50%	10/12 RUE LATÉCOÈRE	78140
VÉLIZY/THALES TED	100%	2/8 RUE LATÉCOÈRE	78140
Total inner rim
MASSY/PARIS	100%	147-149 RUE DE PARIS	91300
Total outer rim
BORDEAUX/CITÉ NUMÉRIQUE	100%	406 BOULEVARD JEAN-JACQUES BOSC	33130
LYON/LALANDE 6TH	100%	1 BD JULES FAVRE	69386
LYON/SILEX 1	50%	15 RUE DES CUIRASSIERS	69003
LYON/SILEX 2	50%	9 RUE DES CUIRASSIERS	69003
LYON/TELEGRAPHE	100%	1 RUE DUPHOT - 36 RUE MAZENOD	69003
MARSEILLE/EUROMED CALYPSO	50%	52, QUAI DU LAZARET	13002
MARSEILLE/EUROMED HOTEL	50%	52, QUAI DU LAZARET	13002
MARSEILLE/EUROMED PARKING	50%	52, QUAI DU LAZARET	13002
METZ/ARSENAL	100%	5 PERIGOT DVT LES PONTS	57000
MONTPELLIER/MAJORIA B4	100%	PARC DE LA POMPIGNAGNE - RUE DE PINVILLE	34000
MONTPELLIER/MAJORIA LA LONA	100%	PARC DE LA POMPIGNAGNE - RUE DE PINVILLE	34000
MONTPELLIER/MAJORIA SLB	100%	PARC DE LA POMPIGNAGNE - RUE DE PINVILLE	34000
MONTPELLIER/TRENCAVEL	100%	196 RUE RAYMOND TRENCAVEL	34000
MONTPELLIER/MAJORIA LA BASTIDE	100%	PARC DE LA POMPIGNAGNE - RUE DE PINVILLE	34000
NANTES/GLORIETTE	100%	68 RUE GASTON VEIL	44000
NANTES/TANNEURS	100%	10 BIS AV DES TANNEURS	44000
TOULOUSE/MARQUETTE	100%	22 BD DE LA MARQUETTE	31000
VILLEURBANNE/CENTRAL	100%	42, AVENUE HENRI BARBUSSE	69100
VILLENEUVE-D'ASCQ/FLERS	100%	2 CH DE LA MARE	59650
Total major regional cities
Development portfolio
MEUDON/VIBE THALES 2	100%	23-25 AVENUE MORANE SAULNIER/ 22-24 AVENUE MARÉCHAL JUIN	92360
PARIS/GRANDS BOULEVARDS	100%	15/17 RUE POISSONNIÈRE	75009
PARIS/MONCEAU	100%	23 RUE MÉDÉRIC	75017
Total committed projects
BORDEAUX/TERRES NEUVES	100%	RUE MARC SANGIER	33130
PARIS/BOBILLOT	100%	95/97 RUE BOBILLOT	75013
VÉLIZY/TERRAIN	50%	N/A	78140
Total managed projects
AIX EN PROVENCE/CÉZANNE	100%	12, 14 AVENUE PAUL CEZANNE	13090
CHALONS SUR SAONE/VICTOR HUGO	100%	20 AVENUE VICTOR HUGO	71100
CONFLANS-SAINTE-HONORINE/ CL4 PYLONE	100%	126 RUE ARISTIDE BRIAND	78700
LILLE/CORMONTAIGNE	100%	34 PLACE CORMONTAIGNE	59000
RUEIL / LESSEPS B3	100%	126 RUE ARISTIDE BRIAND	78700
SAINT-MAUR-DES-FOSSÉS/GRAVELLE	100%	36 BOULEVARD RABELAIS	94100
TOULOUSE/TROENES	100%	106/110 RUE DES TROENES	31200
VALENCE/HUGO	100%	179 AV VICTOR HUGO	26000
VILLEBON-SUR-YVETTE/CENTRAL	100%	2 RUE VICTOR HUGO	91140
Total residential development

Name	City/Region	Surface area at 100%
Assets in operation		789,126
PARIS / ART&CO	PARIS	13,599
PARIS / ATELIER	PARIS	5,837
PARIS / CAP 18	PARIS	63,320
PARIS / CHERCHE-MIDI	PARIS	3,510
PARIS / GOBELINS	PARIS	4,442
PARIS / JEAN GOUJON	PARIS	8,677
PARIS / LOUVRE	PARIS	4,884
PARIS / MAILLOT	PARIS	9,755
PARIS / MENILMONTANT	PARIS	3,939
PARIS / MONTMARTRE	PARIS	5,926
PARIS / N2 BATIGNOLLES	PARIS	9,985
PARIS / PERCIER	PARIS	8,543
PARIS / PHILIPPE AUGUSTE	PARIS	14,176
PARIS / QUAI DE JEMMAPES	PARIS	9,158
PARIS / STEEL	PARIS	3,681
PARIS / THE LINE	PARIS	4,974
PARIS / VOLTAIRE	PARIS	9,943
Total Paris		184,350
BOULOGNE / GRENIER	BOULOGNE-BILLANCOURT	7,755
BOULOGNE/MOLITOR	BOULOGNE -BILLANCOURT	4,434
ISSY-LES-MOULINEAUX/ATLANTIS	ISSY-LES-MOULINEAUX	11,461
LA DEFENSE/CB 21	COURBEVOIE	66,698
LEVALLOIS-PERRET/MASLO	LEVALLOIS-PERRET	20,814
LEVALLOIS-PERRET/THAIS	LEVALLOIS-PERRET	5,563
NANTERRE/ROUSSEAU	NANTERRE	4,057
Total Western Crescent & La Defense		120,782
SAINT OUEN/SO POP	SAINT OUEN	32,449
CHÂTILLON/IRO	CHÂTILLON	25,626
MONTROUGE/FLOW	MONTROUGE	23,430
ORLY/CDO ASKIA BUREAUX	ORLY	17,892
ORLY/CDO ASKIA COMMERCES	ORLY	952
ORLY/CŒUR D'ORLY BELAÏA	ORLY	23,868
SAINT-DENIS/PLEYEL	SAINT-DENIS	11,746
SAINT OUEN/VICTOR HUGO BAT 1	SAINT OUEN	4,010
SAINT OUEN/VICTOR HUGO BAT 2-5-6-7	SAINT OUEN	8,253
SAINT OUEN/VICTOR HUGO BAT 3	SAINT OUEN	1,400
SAINT OUEN/VICTOR HUGO BAT 4	ST-OUEN	1,137
VÉLIZY/DASSAULT CAMPUS BAT (ABCD)	VÉLIZY-VILLACOUBLAY	57,006
VÉLIZY/DASSAULT CAMPUS BOIS BAT (G)	VÉLIZY-VILLACOUBLAY	27,655
VÉLIZY/DASSAULT CAMPUS + EXTENSION	VÉLIZY-VILLACOUBLAY	12,834
VÉLIZY/THALES HELIOS 1	VÉLIZY-VILLACOUBLAY	46,751
VÉLIZY/THALES TED	VÉLIZY-VILLACOUBLAY	41,523
Total inner rim		336,530
MASSY/PARIS	MASSY	5,152
Total outer rim		5,152
BORDEAUX/CITÉ NUMÉRIQUE	BEGLES	18,462
LYON/LALANDE 6TH	LYON	2,041
LYON/SILEX 1	LYON	10,648
LYON/SILEX 2	LYON	31,050
LYON/TELEGRAPHE	LYON	4,942
MARSEILLE/EUROMED CALYPSO	MARSEILLE	9,800
MARSEILLE/EUROMED HOTEL	MARSEILLE	-
MARSEILLE/EUROMED PARKING	MARSEILLE	1,458
METZ/ARSENAL	METZ	9,045
MONTPELLIER/MAJORIA B4	MONTPELLIER	2,543
MONTPELLIER/MAJORIA LA LONA	MONTPELLIER	1,378
MONTPELLIER/MAJORIA SLB	MONTPELLIER	3,379
MONTPELLIER/TRENCAVEL	MONTPELLIER	8,636
MONTPELLIER/MAJORIA LA BASTIDE	MONTPELLIER	5,833
NANTES/GLORIETTE	NANTES	4,489
NANTES/TANNEURS	NANTES	10,433
TOULOUSE/MARQUETTE	TOULOUSE	4,436
VILLEURBANNE/CENTRAL	VILLEURBANNE	2,540
VILLENEUVE-D'ASCQ/FLERS	VILLENEUVE-D'ASCQ	11,201
Total major regional cities		142,313
Development portfolio		140,358
MEUDON/VIBE THALES 2	MEUDON-LA-FORÊT	38,000
PARIS/GRANDS BOULEVARDS	PARIS	7,346
PARIS/MONCEAU	PARIS	11,177
Total committed projects		56,523
BORDEAUX/TERRES NEUVES	BEGLES	10,000
PARIS/BOBILLOT	PARIS	3,652
VÉLIZY/TERRAIN	VÉLIZY-VILLACOUBLAY	17,230
Total managed projects		30,882
AIX EN PROVENCE/CÉZANNE	AIX-EN-PROVENCE	3,161
CHALONS SUR SAONE/VICTOR HUGO	CHALON/SAONE	2,731
CONFLANS-SAINTE-HONORINE/ CL4 PYLONE	CONFLANS STE HONORINE	1,425
LILLE/CORMONTAIGNE	LILLE	3,573
RUEIL / LESSEPS B3	CONFLANS STE HONORINE	713
SAINT-MAUR-DES-FOSSÉS/GRAVELLE	ST MAUR DES FOSSES	3,969
TOULOUSE/TROENES	TOULOUSE	32,000
VALENCE/HUGO	VALENCE	4,190
VILLEBON-SUR-YVETTE/CENTRAL	VILLEBON-SUR-YVETTE	1,192
Total residential development		52,954

1.8.2 Italy Offices

Synthesis

Area	Surface area at 100% (in m ² )
Core assets in operation	339,362
CBD	106,604
Centre	5,423
Semi-centre	113,271
Periphery	114,064
Assets under development	185,665
TOTAL MILAN	525,027
Assets outside Milan	391,575

List of core and development assets in Milan: Group Share of 71% of Italy Offices portfolio

Name	% ownership	Location	Surface area at 100% (in m ² )
Core assets in operation			339,362
CORSO MONFORTE 17	51%	MILAN CBD	3,415
PIAZZA S. FEDELE 2	100%	MILAN CBD	5,089
PIAZZA SAN FEDELE 4	100%	MILAN CBD	3,426
PIAZZA SIGMUND FREUD (ACCESSORI) 1	100%	MILAN CBD	2,339
PIAZZA SIGMUND FREUD (CORPO C) 1	100%	MILAN CBD	5,784
PIAZZA SIGMUND FREUD (TORRE A) 1	100%	MILAN CBD	16,349
PIAZZA SIGMUND FREUD (TORRE B) 1	100%	MILAN CBD	16,567
VIA AMEDEI 8	100%	MILAN CBD	6,550
VIA CORNAGGIA 6	100%	MILAN CBD	7,089
VIA DANTE 7 - OFFICE WELLIO	100%	MILAN CBD	4,542
VIA DANTE 7 - RETAIL	100%	MILAN CBD	1,878
VIA DELL'UNIONE 1 - RETAIL	100%	MILAN CBD	2,991
VIA DELL'UNIONE 1 - OFFICE	100%	MILAN CBD	4,300
VIA PARINI 6	51%	MILAN CBD	7,082
VIA TONALE 11	51%	MILAN CBD	19,202
Total CBD			106,604
CORSO MAGENTA 59	100%	MILAN CENTRE	4,772
CORSO MAGENTA 63	100%	MILAN CENTRE	651
Total centre			5,423
SYMBIOSIS - EDIFICIO SCHOOL	100%	MILAN SEMICENTRE	7,938
SYMBIOSIS A + B	100%	MILAN SEMICENTRE	20,832
SYMBIOSIS D	100%	MILAN SEMICENTRE	18,004
THE SIGN - EDIFICIO C	100%	MILAN SEMICENTRE	4,630
THE SIGN - EDIFICIO A	100%	MILAN SEMICENTRE	9,588
THE SIGN - EDIFICIO B	100%	MILAN SEMICENTRE	12,427
VIA CESARE BALBO 8	51%	MILAN SEMICENTRE	6,014
VIA MANTEGNA 11	51%	MILAN SEMICENTRE	5,978
VIA MAROSTICA 1	100%	MILAN SEMICENTRE	7,639
VIA MESSINA 38 (TORRE A)	100%	MILAN SEMICENTRE	4,624
VIA MESSINA 38 (TORRE B)	100%	MILAN SEMICENTRE	5,312
VIA MESSINA 38 (TORRE C)	100%	MILAN SEMICENTRE	5,309
VIA MESSINA 38 (TORRE D)	100%	MILAN SEMICENTRE	4,976
Total semi-centre			113,271
PIAZZA MONTE TITANO 10	100%	MILAN PERIPHERY	5,951
VIA CASCINA BELLARIA 4	51%	MILAN PERIPHERY	4,507
VIA FOLLI 17	51%	MILAN PERIPHERY	4,807
VIA LORENTEGGIO 266	100%	MILAN PERIPHERY	30,234
VIA MARCO AURELIO 24-26	51%	MILAN PERIPHERY	61,400
VIA ROMBON 11	100%	MILAN PERIPHERY	7,165
Total periphery			114,064
Development portfolio			185,665
CORSO ITALIA 19	100%	MILAN CBD	12,081
MILANOFIORI - STRADA 8	100%	MILAN PERIPHERY	25,698
Symbiosis G+H	100%	MILAN SEMICENTRE	37,297
THE SIGN - EDIFICIO D	100%	MILAN SEMICENTRE	12,437
Total committed projects			87,512
SCALO DI PORTA ROMANA	100%	MILAN SEMICENTRE	75,000
SYMBIOSIS C + E	100%	MILAN SEMICENTRE	23,153
Total managed projects			98,153

1.8.3 Germany Offices

Synthesis

Area	Surface area at 100%
Core assets in operation	205,707
Berlin	58,119
Frankfurt	71,455
Hamburg	43,696
Munich	19,492
Oberhausen	12,945
Development portfolio	81,200
Non-core assets	103,220

List of assets in operation and under development in Germany

Name	% ownership	Address	Postal Code	City/Region	Surface area at 100% (in m ² )
Core assets in operation					205,707
EBERSWALDER	66%	Eberswalder Str. 6-9	10437	Berlin	6,257
FISCHERISLAND	66%	Gertraudenstr. 18, 20	10178	Berlin	10,599
BERLIN HQ	66%	Knesebeckstr. 3	10623	Berlin	2,368
TINO	94%	Tino-Schwierzina-Str. 32	13089	Berlin	10,010
BEAGLE	100%	Groß-Berliner Damm 81	12487	Berlin	5,089
LOTTE	62%	Lotte-Pulewka-Str. 22	14473	Berlin	10,904
PERSIUS	66%			Berlin	12,892
Total Berlin					58,119
FAC	90%	Hugo-Eckener-Ring 1	60549	Frankfurt	48,136
CITY GATE	94%	Nibelungenplatz 3	60318	Frankfurt	23,320
Total Frankfurt					71,455
OBERHAUSEN HQ	62%	Essener Str. 66	46047	Oberhausen	12,945
Total Oberhausen					12,945
ZEUGHAUS	94%	Christoph-Probst-Weg 1-4, 26-31	20251	Hamburg	43,696
Total Hamburg					43,696
SUNSQUARE	94%	Sonnenallee 1, Kirchheim	85551	Munich	19,492
Total Munich					19,492
Total development portfolio					81,200
LOFT	66%	Alt-Moabit 105	10559	Berlin	7,550
ALEXANDERPLATZ	55%	Alexanderplatz	10117	Berlin	59,500
ICON	94%	Herzogstraße 15	40217	Düsseldorf	55,717
Total committed projects					67,050
PLANO	100%	Wilhelm-Kabus-Straße 11-19	10829	Berlin	14,150
Total managed projects					14,150

1.8.4 German Residential

Synthesis

Area	Number of units
Berlin	17,852
Dresden & Leipzig	4,354
Hamburg	2,415
North Rhine-Westphalia	16,482
Essen	5,757
Duisburg	3,033
Mülheim	2,180
Oberhausen	1,830
Other cities	3,682
TOTAL	41,103

Number of units by postal code in Berlin

Postal Code	Number of units
10115	65
10117	27
10119	33
10178	120
10179	24
10243	107
10245	219
10247	208
10249	62
10317	271
10365	34
10405	266
10409	66
10435	41
10437	422
10439	81
10551	194
10553	128
10555	42
10557	356
10559	101
10585	92
10587	42
10589	82
10623	11
10625	70
10627	21
10629	45
10707	34
10709	250
10711	48
10713	120
10715	26
10717	21
10719	51
10777	147
10779	34
10781	19
10783	73
10785	172
10789	339
10823	102
10825	18
10827	115
10829	217
10961	118
10963	25
10965	78
10967	256
10969	15
10997	226
10999	223
12043	291
12045	160
12047	227
12049	497
12051	428
12053	344
12055	219
12057	17
12059	399
12099	109
12103	103
12105	117
12107	120
12109	185
12157	83
12159	69
12161	165
12163	170
12165	25
12167	434
12169	97
12203	70
12205	5
12207	95
12209	13
12247	116
12249	536
12277	139
12307	5
12347	41
12351	373
12355	30
12435	6
12439	27
12459	498
12487	65
12489	40
12555	159
12557	8
12587	16
12623	28
12683	206
13086	825
13088	39
13156	93
13158	12
13187	101
13189	41
13347	345
13349	28
13351	381
13353	468
13355	29
13357	553
13359	221
13403	287
13407	123
13409	212
13465	4
13467	8
13469	32
13507	44
13509	34
13581	43
13583	280
13585	353
13587	26
13591	51
13595	143
13597	72
13599	20
13629	91
14052	32
14059	111
14109	12
14129	4
14163	14
14165	9
14167	18
14193	17
14195	19

1.8.5 Hotels in Europe

A list of hotel assets is available in the Covivio Hotels Universal Registration Document.

2 Risks and control mechanisms

2.1 Risk factors

In accordance with European regulation (EU) No. 2017/1129 of 14 June 2017, the two associated subsidiary regulations which came fully into force on 21 July 2019 (together called "Prospectus 3") and the ESMA guidelines on risk factors, the risks specific to the Covivio group, the occurrence of which could have a significant effect on the company's financial position or results, after the application of risk management measures, are presented below.

The risk mapping, which is regularly reviewed, was updated in 2023 at a group level; it includes all its subsidiaries and activities and takes into account changes in the business lines and the environment in which the Group operates. Its results are presented and discussed with the Audit Committee, then with the Board of Directors.

The major risks have been identified, as have the action plans to be implemented, strengthened or applied in order to improve control.

However, investors should be aware that other risks, likely to have a significant adverse impact, may exist, even though they have not yet been identified or their occurrence had not been considered plausible on the date hereof.

2.1.1 Prioritisation and summary of the main risks

The Risk, Compliance, Audit and Internal Control Department is responsible for identifying and rating risks on the basis of:

―	interviews with each operational department;
―	the results of the annual audit plans, which make it possible to identify their level of control through the analysis of the effectiveness of the internal control processes deployed by the Group.

The risks are presented in a limited number of categories (I. to VII.) in accordance with ESMA guidelines ⁽¹⁾.

2.1.1.1 Methodology

The risk rating is the result of a combined analysis of their potential negative impact and their probability of occurrence, while taking into account the control measures implemented by Covivio.

2.1.1.1.1 Impact and level of control

Should it occur, the risk is likely to have an impact on the valuation of the company, on its results as well as on its image and/or on the continuity of its business. Thus, the rating of the impact results from a financial estimate of the effect of such a realisation on the NAV or EPRA Earnings consolidated as a Covivio Group Share, depending on the financial flows concerned.

Certain non-quantifiable risks are estimated based on their potential impact on business continuity and/or on the image of Covivio, consequences that could hinder the Group's ability to implement its strategy and establish business relationships with its stakeholders (buyers, sellers, customers, tenants, employees, suppliers, etc.).

Once quantified, the gross impact is adjusted for the level of control and the insurance coverage system.

This results in a rating of the net impact on a scale of 1 to 4 (from the lowest to the highest).

2.1.1.1.2 Probability and level of control

The probability of occurrence of the risk is rated from 1 to 4 which also takes into account the control system put in place by Covivio, mainly based on the efficiency of its procedures and, more generally, its internal control system.

2.1.1.1.3 Overall risk assessment

The risk is classified by taking into account the combined effect of its potential net impact and its net probability:

―	low risk: < 1.5;
―	moderate risk: between 1.6 and 2.5;
―	high risk: between 2.6 and 3.5;
―	very high risk: > 3.6.

2.1.1.2 Summary of the main risks

The main risks are identified in the table below. They are grouped into seven categories:

I. Risks linked to the environment in which Covivio operates

II. Risks related to climate change

III. Financial risks

IV. Risks related to Covivio's development

V. Risks related to information systems, data security and cybercrime

VI. Risks related to the legal and regulatory framework in which Covivio operates

VII. HR Risks.

⁽¹⁾ ES MA31-62-1293 FR "Guidance on risk factors in the context of the Prospectus regulation".

Preamble:

The 2023 risk estimate mainly reflects the new geopolitical, economic and financial environment in which Covivio is operating, dominated by continuing high interest rates that increase uncertainties in the real estate market, now marked by a wait-and-see attitude among investors.

			RISK RATING
Risk category	Risks	Name of the risk (see graph)	Impact qualification	Probability qualification	Overall risk qualification (impact and probability)	Trend vs Y-1
I. Risks linked to the environment in which Covivio operates	Unfavorable changes in the real estate market	Real estate market (values)	□□□□	□□□□	Very High	→
	Reduction in demand and risks of vacancy resulting from new practices in the Offices sector (remote working)	Tenant defaults	□□□	□□□	High	→
	Decline/halt in activity resulting from an unfavourable geopolitical environment, terrorism, social unrest or pandemics, etc. (mainly Hotels)	Economic decline in revenue (Hotels)	□□□	□□	Moderate	→
	Default or insolvency of our tenants resulting from a difficult global economic context	Tenant defaults	□□□	□	Moderate	→
II. Risks related to climate change	Financial consequences of climate change: "transition" risk (cost of adaptation to existing and future environmental constraints) and "active" risk	Climate change	□□	□□□□	High	↑
III. Financial risks	Unfavorable change in borrowing rates: increase in financial expenses on the share of unhedged debt, hindering the ability to refinance existing debt and finance real estate development	Rate	□□□	□□□	High	→
	Liquidity risk and risk of non-compliance with banking covenants (LTV, ICR) related to decreases in value and/or fall in revenues	Covenants and liquidity	□□□	□□	Moderate	↑
IV. Risks related to Covivio's growth	Risks related to construction, property development or development operations: supply disruption, delivery delays, non-compliance with budget forecasts (construction costs, vacancy on blank operation), risks related to safety on construction sites	Construction	□□	□□□	High	→
V. Risks related to information systems, data security and cybercrime	Failure of information systems, consequences of "cyber" attacks, theft and/or alteration of data, particularly personal data	Cybercrime/ Data	□□□	□□□	High	→
VI. Risks related to the legal and regulatory framework in which Covivio operates	Unfavourable change in tax regulations	Tax regulations	□□□	□□	High	↑
	Unfavourable change in real estate regulations	Real estate regulations	□□□	□□	Moderate	→
	Risk of fraud, corruption (and related offences), money laundering and related legal and image risks	Fraud, Corruption, money laundering	□□	□□	Moderate	→
	Compliance with health and safety regulations (mainly hotels)	Health/ safety regulations	□	□□	Low	→
VII. HR Risks	Organisational risks related to the non-retention of the most sought-after employees in the labour market	Talent retention and development	□	□□	Moderate	→

2.1.2 Description of the main risks, impacts and control

I. Risks linked to the environment in which Covivio operates

Risk	See graph	Level	Chg./N-1
Unfavourable changes in the real estate market	Real estate market (values)	Very high	→

Description

―

Covivio's total assets at the end of 2023 (€225 billion at 100%) mainly consisted of the appraisal value of the buildings, which amounted to €23.1 billion (€15.1 billion Group share). Thus, any change in the value of real estate assets will have a direct impact on the balance sheet total.

―

The value of Covivio's asset portfolio is contingent upon the performance of the real estate markets in which it operates. Both rents and market prices (and consequently the yield rates used as comparable by property experts) may be subject to fluctuations due to the economic and financial environment. Covivio recognises its investment properties at fair value in accordance with the option offered by IAS 40.

―

In 2023, the value of the portfolio Group Share, changed on a like-for-like scope by -10.2% over the year (compared to -0.1% in 2022); this annual change is essentially due to the fact that the values for 2023 take into account the sharp deterioration in the economic and financial environment in 2022, characterised by a rise in borrowing rates and a strong wait-and-see attitude among investors.

―

The sensitivity of asset values to yield rates (corresponding to the rent/appraisal value excluding duties) is presented in Section 4.2.5.1.5 of this Document.

―

Thus, a decrease in appraisal values is likely to affect the value of Covivio's net asset value and, possibly, the valuation of its share price.

―

Finally, Covivio may not always be able to implement its rental, disposal and investment strategy at favourable market conditions, due to fluctuations in the real estate markets.

Control mechanism

―	Covivio is committed to maintaining a solid rental base characterised by long-term rental partnerships (occupancy rate of 96.7% at the end of 2023, firm residual lease term of 7.0 years, stable vs. 2022).
―	The Group favours development projects for the benefit of key accounts, pre-let before launch or delivery (the pre-letting rate for offices projects undertaken at the end of 2023 was 67.2%).
―	Covivio is improving the quality of its portfolio through the development of assets with very good environmental performance and the implementation of targeted work plans.
―	At 31 December 2023, 95.3% of our portfolio is certified, with 67.2% of the office portfolio certified HQE/BREEAM Very Good or above. Covivio is targeting a 40% reduction in its emissions (between 2010 and 2030). Actions taken so far, which help make Covivio buildings more attractive to tenants, have been welcomed by the main rating agencies.
―	At the same time, Covivio is pursuing an ongoing asset management strategy to protect the value of its existing portfolio, including an arbitrage policy aimed at maintaining its locations in European capital city-centres and the main business and leisure districts.
―	The diversification of Covivio's activities in terms of products and geography also significantly helps to reduce the impact of market risk.
―	Lastly, an Innovation Department and a Transformation Department were created to strengthen the competitive positioning of Covivio's portfolio through the implementation of an expanded service offering (digitisation, co-working spaces, etc.).

Summary of potential impacts

―	Decrease in balance sheet value, NAV and, in certain cases, the share price.
―	Impediment to the implementation of Covivio's strategy: acquisitions, disposals, leases.

Risk	See graph	Level	Chg./N-1
Reduction in demand and risk in vacancy resulting from new practices in the Offices scope (remote working)	New offices uses	High	→

Description

―	As of 31 December 2023, offices assets represented 52% of the Group's portfolio and 49% of revenues; their vacancy rate was 5.5% (compared to 0.8% for German Residential and 0% for Hotels in Europe).
―	Remote working, which was rare before the Covid-19 health crisis, increased significantly during the lockdown periods beginning in the spring of 2020.
―	Given the high level of employee satisfaction for those working remotely, this phenomenon is expected to be continued in the coming years. This trend will likely be reinforced by the fact that companies may see remote working as an opportunity to significantly reduce their operating costs (in particular by deploying workstation-to-employee ratios of < 1), a significant lever for savings in an inflationary context.
―	However, it should be noted that this phenomenon, which has already reached a certain level of maturity, is likely to stabilise in the medium term; the use of full remote, being fairly marginal, is not currently a preferred solution for companies.
―	With a constant asset allocation strategy, Covivio expects an increase of office vacancy rate over the coming years in France, Germany and Italy, which will then stabilise over time. For example, a one-point increase in the office vacancy rate is likely to lead to a decrease in rental income of €3.9 million.
―	This unfavourable change in demand could thus affect both Covivio's revenues and the valuation of its portfolio.

Control mechanism

―	Covivio has opted for a demanding asset allocation strategy characterised by a long-term rental base and high real estate quality, favouring assets with excellent locations.
―	The maintenance of a high firm residual lease term, the staggering of tenant vacations and ongoing discussions with them enable Covivio to secure its income over the long term. Thus, at the end of 2023, the firm residual duration of leases was 7.0 years.
―	With its integrated Property Management teams, Covivio places customer satisfaction at the heart of its priorities. The Group intends to differentiate itself from its competitors by strengthening its service offering and by pursuing its environmental ambitions through the certification of its assets.
―	All the measures aimed at strengthening the attractiveness and competitiveness of its portfolio are also detailed in the risk section "Unfavourable changes in the real estate market" above.

Summary of potential impacts

―	Increase in vacancies and decrease in rental income.
―	Decrease in portfolio value.

Risk	See graph	Level	Chg./N-1
Decline/halt in activity resulting from an unfavourable geopolitical environment, terrorism, social unrest or pandemics, etc. (mainly hotels)...	Economic decline in revenues	Moderate	→

Description

―	In the event of a deterioration or instability of the political, geopolitical, health (pandemics) or social context in Europe, Covivio could experience a decrease in demand for its business property projects and, consequently, a drop in its occupancy rate and rental income.

Hotel activity

―

This risk is the most significant for Covivio's hotel business (operated via its 43.9%-owned subsidiary Covivio Hotels). This activity is in fact partially liable to suffer from a rapid decline or even a total absence of revenue:

―	on its variable-rent assets indexed on hotel revenues;
―	on its operating income from the portfolio run as "operating properties".

―

The hotel portfolio represents 17% of Covivio's portfolio in Group Share; Covivio's share of variable income was 8.8%.

―

At the height of the Covid-19 crisis, only 22% (in number of rooms) of Covivio's hotel portfolio was open.

―

Similarly, in 2018, the "Gilets jaunes" movement had an unfavourable impact on hotel occupancy resulting in a -0.5 point drop in the average occupancy rate including -3.6 points in Paris.

―

The risk of an attack also has a direct impact on hotel occupancy in major cities. Thus, during the attacks of 2015, the hotel located at Brussels Airport saw its occupancy decrease by 14.4 points.

―

The Russo-Ukrainian conflict did not have an adverse impact on the number of visitors to Covivio Hotel's portfolio. Nevertheless, the resulting uncertainties mean that future consequences for international tourism cannot be ruled out.

―

Lastly, the increased weighting of "operating properties" in the hotel portfolio once ongoing discussions with AccorInvest come to fruition will make Covivio's portfolio more sensitive to changes in the geopolitical context with an increase in the variable share of income post-deal.

Other activities

―	The Group's other activities were to a much lesser extent affected by the pandemic and are less sensitive to changes in the geopolitical context, the health situation, etc.
―	As of 31 December 2023, the total amount of expenses net of irrecoverable loans corresponds to a controlled level of 0.3% of rents.

Control mechanism

―

The risk reduction measures put in place by Covivio consist of:

―	developing a solid, long-term rental base by maintaining a high residual lease term (7.0 firm years at the end of 2023), including 12.2 years in the hotel scope;
―	putting in place prudential rules applied to development projects (monitoring of the pre-letting ratio on the development portfolio, limitation of equity exposed to vacancy risk, etc.);
―	maintaining the diversification of its activities in terms of products and geographical locations.

―

In its hotel business, Covivio has chosen to forge partnerships with major hotel groups (AccorInvest, NH hotels, IHG, Marriott, B&B, RHG, Barcelo, Hotusa, etc.) benefiting from a solid financial base, enabling them to cope with a significant decline in their revenues in the short/medium term.

―

At the same time, the Group is working to diversify its rental base and its hotel establishments. For several years, Covivio Hotels has been able to expand the number of its operator partners (16 in total). Covivio Hotels has hotels in 12 countries and operates 67% in the economic/midscale segment and 33% in the upscale segment.

―

This diversification has enabled it to take full advantage of the "post-Covid" recovery in the tourism business on its portfolio in variable revenues.

―

The risk management system is also described in the developments dedicated to risk "Default or insolvency of our tenants resulting from a difficult global economic context".

Summary of potential impacts

―	Decrease in variable revenues: variable rental income and hotel operating revenues (EBITDA).
―	Financial fragility of tenants, which can go as far as bankruptcy (vacancy and unpaid rents).

Risk	See graph	Level	Chg./N-1
Default or insolvency of our tenants resulting from a difficult global economic context	Tenant defaults	Moderate	→

Description

―	Covivio and its subsidiaries are subject to the risk of a deterioration in the financial soundness of their tenants, which may go as far as their insolvency.
―	As a reminder, in 2019, Covivio was faced with the default of one of its tenants (Sequana) who had vacated 5,900 m ² in a building located in Boulogne. The financial loss was minimised to six months' rent because the security deposit could be retained.
―	In 2020, faced with WeWork's financial difficulties, Covivio had to reach an agreement resulting in the release of 21,600 m ² in Dusseldorf, representing a loss of earnings of €7 million.
―	In the hotel scope, the risk of insolvency of Covivio Hotels tenants is mainly related to exogenous factors that may affect hotel footfall: adverse geopolitical environment, terrorism, social unrest or pandemics, etc. (see "Decline/halt in activity resulting from an unfavourable geopolitical environment, terrorism, social unrest or pandemics, etc. [mainly Hotels]").

Control mechanism

―	Covivio has made the strategic choice to develop rental partnerships with key accounts and large companies, while ensuring the diversification of its rental base.
―	As such, for several years now, the weight of some key account tenants, such as Orange in France, Telecom Italia in Italy and AccorInvest in the hotel segment, has decreased considerably.
―	The weight of the top three tenants in revenues fell from 41% in 2014 to 13% by the end of 2023.
―	The "Partnership Committees" allow the company to monitor changes in the business activities of its tenants more closely.
―	Rental guarantees, rental deposits and the use of an external service to carry out tenant financial strength studies allow Covivio to monitor its tenants' risk of insolvency.
―	The majority of rent in the German Residential portfolio is paid by automatic transfer. A national register of payment defaults that can be consulted by lessors and financial institutions also ensures better management of the risk of payment default.

Summary of potential impacts

―	Decrease in revenues resulting from increased rents and/or vacancies.

II. Risks related to climate change

Risk	See graph	Level	Chg./N-1
Financial consequences of climate change: "transition" risk (cost of adaptation to existing and future environmental constraints) and "asset" risk	Climate change	High	↗

Description

―	Since 2020, Covivio has commissioned MSCI to conduct an MSCI Real Estate Climate-Value-at-Risk® review on its office portfolio in Europe. In 2022 this analysis was extended to offices, hotel and residential assets in Europe. Details of this risk as well as the results of the analysis are presented in Section 3.3 of this Document.
―	In a context of climate change, this risk is broken down into two sub-categories of risks likely to have financial consequences on the Group's portfolio or revenues: physical risk and risks of transition.

Physical risks

―	Physical risk consists of the potential direct financial impact of climate change on Covivio's portfolio: coastal and river flooding, extreme cold and heat, violent winds from tropical storms and cyclones, forest fires, etc. MSCI's model allows for a range of more or less pessimistic scenarios.
―	The financial impacts can thus be multiple both in terms of asset value and income: loss of assets, repair or replacement costs, construction delays, costs of resizing heating/cooling facilities, increase in operating costs, decrease in occupancy rates, lower rents, etc.
―	Under the 5 °C scenario - RCP 8.5 ⁽¹⁾ according to which there would be no reduction in carbon emissions achieved at global level, physical risks would represent 0.58% of the value of the assets analysed by 2100. This risk falls to 0.19% under a scenario in which public policies would limit global warming to 1.5 °C. The main risks identified for Covivio are coastal and river flooding and extreme heat.

Risks of transition

―

The challenge for the portfolio held by Covivio lies more in the risks transition inherent in the need to reduce greenhouse gas emissions.

―

The impacts of this risk can be modelled according to different scenarios of alignment with a carbon trajectory, taking into account expected changes in terms of demographics, energy mix and carbon cost. For its portfolio, Covivio has selected an alignment with a 1.5 °C trajectory:

―

According to the REMIND Orderly model (model used by the NGFS ⁽²⁾ ), the risk of transition represents 3.48% of the value of the portfolio assets, due to the efforts to be made to align with a 1.5 °C trajectory (93% reduction in the carbon intensity of the portfolio by 2050) and the assumption of an increase in the price of carbon over time.

―

According to the CRREM ⁽³⁾ model, the transition risk represents 1.95% of the value of the portfolio's assets (reduction of 94% in the portfolio's carbon intensity by 2050).

Control mechanism

―

In order to bring its portfolio into line with its low-carbon objectives and control its transition risk, Covivio expects to invest €254 million in investment work ("green" Capex) by the end of 2030. The impact of this work is not included in the analyses opposite, but will make it possible to reduce the average carbon intensity of Covivio's portfolio and thus reduce this level of value at risk.

―

Covivio's sustainable development strategy, in particular its most significant climate-related issues and its plan of action implemented, are described in Chapter 3 of this Universal Registration Document (URD) and the Group's climate report.

Summary of potential impacts

―	Loss of attractiveness of the portfolio that may result in a decrease in its value and the rental income it generates.
―	Increase in costs and charges.
―	Weakening of the rental property base.
―	Physical destruction of assets (limited).

⁽¹⁾ RCP 8.5 is the most pessimistic scenario for radiative forcing over the period 2006-2300.

⁽²⁾ Network for Greening the Financial System.

⁽³⁾ Carbon Risk Real Estate Monitor.

III. Financial risks

Risk	See graph	Level	Chg./N-1
Unfavourable change in borrowing rates: increase in financial expenses for the share of unhedged debt, hampering the ability to refinance existing debts as well as real estate development	Rate	Moderate	→

Description

―	The ECB's sequence of policy rate increases, intended to rein in inflation, continued in 2023 until the third quarter of the year.
―	According to the Central Bank, inflation has slowed significantly in recent months but is expected to rise temporarily in the short term. The latest Eurosystem staff projections for the euro zone foresee a gradual decline over the next year to the target rate of 2% which should be achieved in 2025-2026.
―	While this favourable outlook is good for the expected direction of interest rates, Covivio's needs to raise new finance and refinance maturing debt make results sensitive to both past and future interest rate increases.
―	With €7.7 billion in long-term and short-term borrowings (Group Share) at the end of 2023 (i.e. a net debt of €6.9 billion compared with €7.6 billion at the end of 2022), Covivio is exposed to the risk of an increase in its financial expenses in coming years. In 2023, the cost of financial debt thus stood at €97.4 million compared to €87.2 million in 2022, an increase of more than €10 million, despite the success of action plans to reduce the Group's overall debt.
―	Sensitivity to increases in the interest rate is described in Section 4.2.2.3 of this Document.

Control mechanism

―	Covivio uses hedging instruments to manage its interest rate risk.
―	The average interest rate on Covivio's debt was 1.50% at the end of 2023 (compared with 1.24% at the end of 2022).
―	Average debt maturity is 4.9 years at 31 December 2023 (compared to 4.8 years at end-2022).
―	The Group's companies use derivatives to hedge against their interest rate risk, primarily via cap and swap contracts. They carry out market transactions solely for the purpose of hedging their interest rate risk.
―	At the end of 2023, Covivio's debt is hedged at 92% with an average maturity for hedging instruments of 5.9 years.

Summary of potential impacts

―	Increase in financial expenses on the portion of unhedged debt.
―	A brake on development capacity.

Risk	See graph	Level	Chg./N-1
Liquidity risk and risk of non-compliance with banking covenants (LTV, ICR) related to decreases in value and/or fall in revenues	Covenants and liquidity	High	↗

Description

Liquidity

―	The amount of long-term and short-term borrowings on Covivio's balance sheet (in full) at the end of 2023 amounted to €7.7 billion (Group Share). The debt due in 2024 stands at €0.8 billion and €4.2 billion between 2025 and 2028 (inclusive).
―	Covivio has €2.4 billion in available liquidity enabling it to cover the maturities of its debts until May 2026.
―	The Group is therefore exposed to the risk of insufficient liquidity to service its debt or to refinance debts that have reached maturity.
―	Such a shortfall could lead to early repayment and, if the debt were secured, the re-possession by the lending institution of the assets concerned.
―	The maturity schedule of Covivio's debts (at 100%) is presented in Section 4.2.2.2 of this Document.

Control mechanism

―	Covivio's policy of paying down debt, instituted several years ago, has minimised this risk. Thus, the ratio of net debt to asset value including taxes remained under control at 40.8% at the end of 2023 (compared with 39.5% at the end of 2022). The Bank LTV and EPRA LTV ratios were 43.8% and 44.6% respectively.
―	In absolute terms, Covivio succeeded in reducing its net debt by €0.7 billion and doubling its available liquidity to €2.4 billion.
―	These risks are managed by tracking multi-year cash management plans and, in the short term, by using confirmed and undrawn lines of credit.
―	18-month liquidity forecasts are analysed every month by the Finance Department and are submitted to General Management.
―	Covivio's Investment Grade BBB+ rating, stable outlook, from Standard & Poor's demonstrates that this risk is properly managed.

Covenants

―

The risks related to changes in values and rents are detailed in the section dedicated to risk "Unfavourable changes in the real estate market".

―

In the event of non-compliance with a covenant, Covivio would theoretically have to repay all of its drawn debt. In practice, however, this risk appears unlikely, as banks generally prefer to renegotiate the existing financial terms of the borrowers concerned.

―

The systems for managing the risk of non-compliance with banking covenants (LTV, ICR) are essentially linked to the management of the following other risks:

―	"Unfavourable changes in the real estate market";
―	"Unfavourable change in borrowing rates".

―

At the end of 2023, Covivio's most restrictive LTV (Loan to Value) covenant stands at 60% for an effective ratio of 43.8% (bank LTV). As a result, the company could suffer a decrease in value of its assets of 27% before reaching its LTV covenant.

―

At the end of 2023, Covivio's most restrictive ICR covenant was based on 2x for an effective ratio of 6.4x.

―

For more information, please refer to Section 4.2.2 of this Document.

Summary of potential impacts

―	Inability to service the debt: immediate repayment, seizure of assets.
―	Increase in financial expenses.

IV. Risks related to Covivio's development

Risk	See graph	Level	Chg./N-1
Risks related to construction, property development or development operations: delivery delays, non-compliance with budget forecasts (construction costs, vacancy on blank operation), risks related to safety on construction sites	Construction	High	→

Description

―

The total Offices development pipeline at the end of 2023 was €1.7 billion (compared to €2.0 billion), corresponding to 10 projects in France, Germany and Italy. As a result, Covivio is exposed to the risks related to the development of real estate assets:

―	construction cost of an operation higher than the initial estimate for the project;
―	construction period longer than the estimated one (technical difficulties or delay in execution due to a failure to obtain administrative authorisations, construction site delays resulting from a shortage of materials, etc.) which could lead to a delay in the collection of rents and, in certain cases, the payment of penalties to the future buyer in the context of development operations or to the future tenant (or even the lapse of the lease if the delay goes beyond a predetermined period);
―	risk related to the letting of assets in the event of a market downturn before project delivery;
―	significant Health/Safety risk on all construction sites.

Increase in construction costs and shortage of construction materials.

―	The production stoppages by construction materials suppliers during the pandemic, combined with long steady demand driven by a stronger than expected economic recovery, particularly in the United States and Asia, contributed to the gap between the recovery in demand and the supply capacity.
―	The trend observed since 2021 (price increases and delays or even cancellations of orders from suppliers aggravated by the Ukraine war) slowed down significantly in 2023. In France, the ICC thus increased by +3.8% between Q3 2022 and Q3 2023 compared to +8.0% a year earlier over the same period.
―	On a more structural basis and in the longer term, mismanagement of the resources required for construction (particularly natural resources) could lead to a shortage and, consequently, a significant and continuous increase in real estate development costs.

Control mechanism

―	Developments, based on thresholds set in the rules of governance, are presented for approval to the Executive Committee after review by the Risk Management, then to the Strategy and Investment Committee, and finally to the Board of Directors. The risks, obstacles and opportunities are reviewed in detail during the validation procedure.
―	Of the €1.7 billion in the offices pipeline, 53% are pre-let. In addition, costs are 94% secured.
―	A procedure specifies all of the studies to be carried out prior to the launch of any project, including a selection process for service providers, the monitoring of the period ranging from construction to the delivery of the asset and the market launch of "on spec" projects (with no pre-letting).
―	In recent years, the development team made up of experts in their line of business has been strengthened to ensure a better management of projects, including worksite safety for which Covivio systematically uses specialist service providers.
―	Lastly, commitments in terms of prices and delivery deadlines are made with construction companies, including late-payment penalties.

Summary of potential impacts

―	Additional construction costs.
―	Delivery delays.
―	Non-compliance with commitments made to tenants (BEFA) or buyers (development) and associated penalties if applicable.
―	Health and safety impacts and non-compliance with real estate and environmental regulations.

V. Risks related to information systems, data security and cybercrime

Risk	See graph	Level	Chg./N-1
Failure of information systems as a result of cyberattacks, theft and/or alteration of data, particularly personal data	Cybercrime/ data	High	→

Description

Cyberattacks

―	The amount of cash flows that Covivio may be required to disburse exposes it to the risk of cyberattacks and attempted fraud by clever engineering for the purposes of extortion, theft, and alteration or deletion of data, which may lead to an interruption of business.
―	Over the last four years, Covivio has seen an increase in attempted fraud, through clever engineering and phishing operations. These attempts could intensify with the Russian-Ukrainian conflict. Depending on their extent, interruptions, violations or faulty information systems are likely to cause, in addition to significant damage to computer hardware, an image risk and significant financial consequences: expenses incurred to restore systems and reconstitute data, expert and legal fees, and, where applicable, fines for non-compliance with regulations on the protection of personal data.
―	At the beginning of 2022, Covivio was the target of a ransomware cyberattack via the encryption of data located on some of its servers. The latter, which hosted only a small part of Covivio's data and applications, were able to be restarted without significant damage or impact on the company's activity. In 2023, despite frequent phishing attempts and attacks on Covivio's websites, the Group's information systems were not affected.

Theft and/or alteration of data, particularly personal data

―	Given its residential activity in Germany (almost 40,000 tenants), as a hotel operator through its subsidiary Covivio Hotels and as a co-working service provider, the company is particularly concerned with the management of personal data.
―	In addition, the increasing digitalisation of its activities aimed at deploying an attractive range of services in its buildings means that Covivio uses multiple data subcontractors.
―	Thus, in addition to financial, operational or image damage that could result from theft or alteration of its data (processed in its own systems or those of its subcontractors), Covivio could be liable to fines from the competent data protection supervisory authorities, which, in accordance with European regulation No. 2016/679, known as the General Data Protection Regulation (GDPR), could affect 4% of its global revenue.
―	More generally, Covivio could be subject to penalties for non-compliance with the other principles of the regulation: purpose, proportionality and relevance, limited retention period, security and confidentiality, respect for data subjects' rights, including information about how their data is processed.

Control mechanism

―

The measures put in place to reduce this risk are further described in Section 2.2.2.1.2 of this Document:

―	contingency plan;
―	business continuity plan;
―	intrusion tests;
―	training and awareness of cyber risks;
―	cyber risk mapping;
―	cyber insurance policy;
―	introduction of an ISSP (Information Systems Security Policy) and a CISO (Chief Information Security Officer).

―

More generally, Covivio has initiated a project to secure its data and systems by hosting its strategic applications in a network of cloud servers, using a reputable supplier with the highest security standards.

―

Covivio has deployed an organisation dedicated to the protection of personal data at the European level, as detailed in paragraph 3.6.3.2 of this Document. This is led by country Data Protection Officers and a Group Data Protection Officer, guaranteeing the compliance of data processing with regulations.

Summary of potential impacts

―	Unavailability of systems that could seriously hamper Covivio's business in the longer or shorter term and associated image risks.
―	Consulting and expert fees for data recovery.
―	Sanctions related to non-compliance with the regulations on the protection of personal data.

V I. Risks related to the legal and regulatory framework in which Covivio operates

Risk	See graph	Level	Chg./N-1
Unfavourable change in tax regulations	Tax regulations	High	↗

Description

―	Covivio benefits, for some of its activities, from the SIIC regime (for real estate investment companies). As a consequence of this tax relief plan, the company is required to distribute most of its profits, and its shareholders are subsequently taxed.
―	A SIIC must be a public company and must not be 60% or more owned by a majority shareholder, alone or acting in concert. The REIT activities (SIIC activities) must represent more than 80% of its activity.
―	Thus, if the SIIC regime were called into question, Covivio would be subject to corporate income tax on the portion of its income that had hitherto been exempt.
―	Stemming from a project by the OECD and the European Commission, the "PILLAR 2" international tax reform seeks to impose a minimum effective tax rate of 15% on all groups with revenue of at least €750 million, and will be applicable from 2024. The reform provides a specific exclusion for "ultimate parent entity REITs" and their subsidiaries subject to certain ownership conditions. Given a number of uncertainties on application of the rules, particularly regarding scope and calculation methods, the texts do not allow any estimate with reasonable assurance to be made as to the impacts of this reform for the Group as of 31 December 2023.
―	Aside from this reform, any other change in tax rules applicable in the real estate sector or any failure to comply with the resulting obligations could have an adverse impact on the Group's financial results.

Control mechanism

―	The Group's Tax department, which is made up of dedicated professionals, is responsible for managing tax risks. They constantly monitor regulations and case law, both local and European, with the help of specialised external consultants.

Summary of potential impacts

―	Tax penalties.
―	Tax increase.

Risk	See graph	Level	Chg./N-1
Unfavourable change in real estate regulations	Real estate regulations	Moderate	→

Description

―	Legal and regulatory changes in commercial or residential leases, particularly in terms of duration, indexation or recoverable rental charges, are likely to have negative financial consequences for Covivio.
―	For example, in order to limit the sharp rise in rents in recent years, the city of Berlin passed a law in February 2020 ‒ since overturned by the German Constitutional Court ‒ which provided for a freeze and a cap on rents in the city for five years. The impact of this regulation on Covivio's rental income for 2020 had been estimated at around -1%.
―	Urban planning policies in favour of Residential could also, in the event of mandatory reconversion of offices assets into residential assets, affect the value of Covivio's commercial real estate portfolio.
―	Finally, the new construction constraints are also likely to lead to a significant increase in building construction and renovation costs, which would significantly affect the profitability of Covivio's portfolio in the least strained areas.
―	The other specific risks related to environmental issues are detailed in Section 3.2.4 et seq. of this Document.

Control mechanism

―	Covivio has integrated legal teams that closely monitor changes in property regulations.
―	Covivio's Sustainable Development Department is responsible for tracking any changes in environmental regulations. It manages and disseminates any information required by Covivio's real estate teams to implement objectives and associated action plans needed to anticipate future regulations.

Summary of potential impacts

―	Unfavourable change in rents and expenses.
―	Asset obsolescence: decline in values and rents.
―	Increased construction and renovation costs.

Risk	See graph	Level	Chg./N-1
Risk of fraud, corruption (and related offences), money laundering and related legal and image risks	Fraud, corruption, money laundering	Moderate	→

Description

―	Covivio's activities, including sales, acquisition, leasing and development activities, involve significant capital movements as well as regular contact between Covivio employees and service providers, intermediaries and/or public officials.

Fraud

―

Covivio could be the victim of internal or external fraud: use of privileged access, identity theft of an employee, manager or service provider to arrange a transfer to a third-party account for a real or fictitious transaction, etc. In 2023, Covivio was the subject of several identity thefts, in particular through the creation of fake websites aimed at extorting funds from third parties though none had any legal or financial consequences for the Group.

Corruption and influence peddling

―	Covivio employees (employees, corporate officers), directly or via intermediaries, could be liable to commit these offences, in their own interest, that of a third party or that of Covivio.
―	For example, employees could grant donations, subsidies, gifts or other miscellaneous benefits (recruitment of a relative, etc.) with a view to obtaining a contract, any other favourable decision by a public official, a company officer or other decision-maker in connection with a sale, acquisition or lease.
―	Similarly, Covivio employees could be granted these same benefits in order to encourage the use of a service provider.
―	In the event of proven corruption or influence peddling, in addition to the penalties provided for by law, Covivio could be criticised for the weakness of its risk prevention system as defined by law No. 2016-1691 of 9 December 2016 relating to transparency, the fight against corruption and the modernisation of the economy, and be subject to sanctions in this respect.

Money laundering

―

Covivio could participate in or carry out transactions involving a violation of French or European laws and regulations relating to the freezing of assets or restrictive measures (embargoes). Likewise, Covivio could be penalised for failing to comply with the provisions of the French Monetary and Financial Code on anti-money laundering and terrorist financing obligations, for example by failing to carry out due diligence appropriate to the type of business operations.

Image

―

In addition to the penalties (administrative, civil, criminal, etc.) and their financial impact, Covivio could, in the event of proven fraud, corruption or money laundering, see its image damaged, which would have the effect of limiting its ability to form business relationships, and consequently, to implement its strategy of disposal of acquisitions, development or leasing.

Control mechanism

―	Covivio has a structured Internal Control Management System which is described in Section 2.2.
―	Measures to prevent specific risks of fraud, corruption and money laundering are detailed in Section 3.6.2 of this Document. This system is coordinated at the European level by the Group Compliance Officer.
―	The mandatory training provided regularly to all employees at the European level as well as all the tools made available to them (Ethical Charter, whistleblowing system, procedures, etc.) fully contribute to increasing control of these risks.

Summary of potential impacts

―	Financial losses.
―	Sanctions imposed by administrative or legal authorities.
―	Damage to Covivio's image, hindering its ability to forge business relationships.

Risk	See graph	Level	Chg./N-1
Compliance with health and safety regulations (mainly hotels)	Health/safety regulations	Low	→

Description

―	Through its activity, Covivio is exposed to health risks (asbestos, legionella) and environmental risks (particularly soil and subsoil pollution). These risks may incur significant remediation costs and lengthy additional delays associated with the search for and removal of toxic substances or materials when undertaking development or asset-renovation projects and lead to the civil and, potentially, the criminal liability of the company.
―	Moreover, given its significant construction activity (see above), Covivio is exposed to risks related to safety on its construction sites.
―	Likewise, in its hotel scope, the diversification of Covivio's accommodation offering (with alternative solutions between traditional hotels and youth hostels) as well as catering services, mainly in its capacity as an operator, imposes on the company various obligations and responsibilities related to the health and safety of its customers, which were reinforced during the Covid-19 pandemic.

Control mechanism

―	Covivio has integrated legal teams that closely monitor changes in health and safety regulations.
―	Covivio and its partners endeavour to implement appropriate measures to guarantee the health and safety of employees on construction sites in an environment that exposes them to risks of all kinds: falls, electric shocks, exposure to chemical products, noise, vibrations, etc.
―	More generally, in each country, the environmental unit of each Technical Department applies a rigorous policy, in particular by monitoring environmental diagnostics (lead, asbestos, soil pollution), monitoring safety commissions for hotels and Group high-rise buildings, monitoring of environmental performance certifications for assets (HQE operation, Bream In Use) as well as new certifications regarding well-being and connectivity in buildings.
―	Lastly, Covivio has removed the cooling towers likely to lead to a risk of legionella or limited and closely monitored them, when necessary.

Summary of potential impacts

―	Additional compliance costs.
―	Sanctions of the competent authorities.
―	Damage to Covivio's image, hindering its ability to forge business relationships.

VII. HR risks

Risk		See graph	Level	Chg./N-1
Organisational risks related to the non-retention of the most sought-after employees in the labour market		Talent retention and development	Moderate	→
Description	Control mechanism

Description

―	2022 was characterised by post-Covid recovery and an upsurge in hires at European level. The labour market has now returned to its pre-Covid situation in most European countries: in September 2023, the euro zone's seasonally adjusted unemployment rate was 6.5%, slightly below the 6.7% recorded in September 2022, but with significant disparities between countries and sectors of activity ⁽¹⁾.
―	The activities carried out within the Group, both in operational areas and in so-called "support" functions, require a high degree of employee qualification and/or concern particularly dynamic business sectors.
―	Covivio is therefore competing in the job market with many other real estate operators (developers, construction companies, marketers, etc.) and also with financial groups (e.g. asset managers, investment funds, etc.).
―	In addition to the temporary organisational difficulties likely to result from an excessive number of departures (loss of know-how, reallocation of workload and associated psycho-social risks, etc.), Covivio could, if such tension were to persist, find it difficult to implement its strategy optimally due to a lack of qualified personnel and/or be faced with a significant increase in its payroll.
―	Nevertheless, while some sectors are suffering from structural shortages, others, due in particular to the slowdown in construction activity, are experiencing a significant easing of labour market tensions. Covivio therefore has little exposure to this risk in its real estate functions, but remains exposed in its corporate functions.

Control mechanism

―

The challenges relating to skills and the attractiveness of Covivio as an employer were identified as part of the CSR risk mapping as major issues for the company.

―

The measures deployed by the Human Resources Department in each country are detailed in Section 3.5.1.4 of this Document.

―

These include, in particular:

―	regular monitoring of HR indicators to analyse trends and anticipate employee issues (departures, absenteeism, etc.);
―	systems aimed at promoting employer-employee dialogue, preventing psychosocial risks, reconciling personal and professional life (workload monitoring interviews, teleworking agreements, etc.);
―	training and development plans (coaching, mentoring, sponsorship of new arrivals, etc.);
―	a performance-based remuneration system incorporating a variable portion allocation policy;
―	attention paid to employee development, notably through internal promotion.

―

Identification actions (people review, succession plans) and initiatives regarding loyalty of key employees (Covivio long-term incentive plans) are also being rolled out at the European level.

―

Covivio has also developed its visibility on the job market by launching its employer brand in September 2019. The Group's 27 ambassadors (in France, Germany and Italy) are its cornerstone: participation in the Grandes Écoles forums, proposing profiles of people to be recruited, involvement in the various networks to promote Covivio (LinkedIn, JobTeaser, advertising campaigns, etc.).

Summary of potential impacts

―	Temporary organisational risks (loss of know-how) and associated psychosocial risks.
―	Impediment to the deployment of Covivio's strategy.
―	Increase in payroll.

2 .1.3 Financial risks linked to climate change

Covivio's sustainable development strategy, in particular its most significant climate-related issues, are described in the earlier Section 2.1.2 as well as in Chapter 3 of this Universal Registration Document (URD).

It constitutes Covivio's Statement of Extra-Financial Performance. This report complies in particular with the requirements of the decree of 9 August 2017 adopted for the application of the ordinance of 19 July 2017 on the publication of non-financial information, as well as the provisions of Article 173 of the French law of energy transition for green growth and its decree of 29 December 2015.

This year it also includes the first obligations related to the entry into force of the Taxonomy regulation (EU) No. 2020/852 and its delegated acts concerning the first two environmental objectives of the text related to climate change (adaptation and mitigation) and Article 8 specifying the methodology for the indicators to be published in this context.

This report details the objectives and actions that bring Covivio's low-carbon strategy into line with a trajectory of 1.5 °C for its direct activities and well-below 2 °C for all of its activities in Europe in line with the principles of the 2015 Paris Agreement and the climate reporting framework launched by the Task Force on Climate-related Financial Disclosures (TCFD).

⁽¹⁾ Source: Eurostat.

2.2 Internal control, risk management and compliance policies

2.2.1 Objectives, scope and guidelines

2.2.1.1 Objectives and limits

To respond to the risks, including those outlined in this section, Covivio has implemented an internal control and risk management system adapted to its activity in France, Germany and Italy. This system supports the efficiency of its activities and improves team efficiency and the reliability of reporting.

In particular, it seeks to ensure that:

―	activities comply with laws, regulations and internal procedures;
―	management acts correspond to the guidelines set by the corporate bodies;
―	assets, in particular buildings, are adequately protected;
―	the risks arising from the business are correctly evaluated and sufficiently controlled;
―	internal systems, which contribute to the establishment of financial information, are reliable.

Although this internal control system cannot, by definition, provide an absolute guarantee that all types of risks will be completely eliminated, it provides the company with a comprehensive tool that effectively protects against the major risks identified and their potential effects.

2.2.1.2 Scope under review

The internal control and risk management system applies, without exclusion of scope, to all activities covered by Covivio and its subsidiaries, in France and abroad, as well as to all controlled subsidiaries.

2.2.1.3 Standards

Covivio abides by the reference framework recommended by the French Financial Markets Authority (Autorité des Marchés Financiers - AMF). This AMF reference framework is based on that of COSO (Committee of Sponsoring Organizations of the Treadway Commission). It includes a set of methods, procedures and measures that should enable the company to:

―	contribute to the management and efficiency of its business activities and the efficient use of its resources;
―	appropriately take into account significant operational, financial and compliance risks.

2.2.2 System components

2.2.2.1 Structured organisation

In accordance with AMF recommendations, Covivio's internal control system is based, among other things, on known objectives, shared responsibility, and appropriate management of resources and skills.

2.2.2.1.1 Delegations of powers and responsibilities

Delegations and sub-delegations of powers have been put in place. They ensure better organisation of the company and a stronger correlation between the responsibilities of operational entities and the responsibilities of the executive. They are subject to regular reviews and audits.

2.2.2.1.2 Securing information systems

The features of the software applications used by Covivio employees are tailored to their various activities.

The security of the financial transactions conducted using the information systems is ensured by:

―	separation of payment authorisation and the execution of payment transactions;
―	limits on the disbursements allowed for each employee and a dual-signature requirement when limits are exceeded.

These measures are updated in keeping with organisational changes.

The security of the Information System and its infrastructure is ensured by:

1. a contingency plan to mitigate any physical or electronic attack on the information systems. Daily back-ups are stored outside the building in which the main servers operate;

2. a business continuity plan has been operational since June 2013. This plan was drawn up jointly by teams from the Covivio Information Systems and Risk, Compliance, Audit and Internal Control Departments, with the help of the global leader in business continuity solutions. The business continuity plan is described in a special procedure. In particular, it covers IT back-up in the event of an IT incident causing IT to fail to function for employees. Tests are performed annually with the service provider to ensure the efficiency of the system;

3. regular intrusion tests are performed by a specialist services provider to ensure that the information system is secure. All recommendations resulting from these tests are regularly monitored until their implementation;

4. a cyber-risk mapping exercise performed with the assistance of a service provider specialised in this domain. This highlighted that many management strategies were in place within the Group, and implementation recommendations are being taken into account;

5. all Group employees attend training on cyber risks, and awareness-raising sessions on the issue, to remind them of best practice and the conduct to adopt;

6. a Computer Charter, disseminated throughout the Group and attached to Covivio's internal rules:

―	this charter is first and foremost a Code of Conduct laying down the principles for the proper use of IT and digital resources. It also outlines the penalties applicable in the event of any infringements,
―	it defines the scope of responsibility for users and for the company, in accordance with legislation, to ensure the correct use of the company's IT resources and Internet services,
―	it helps to protect the integrity of the IT system, particularly with regard to data security and confidentiality, as well as the security of technical equipment;

7. the appointment of an external CISO (Chief Information Security Officer) in 2018;

8. the development in 2019 of an ISSP: Information System Security Policy.

2.2.2.1.3 Updated, validated and distributed procedures

In France, Germany and Italy, the procedures are drawn up by the Risk, Compliance, Audit and Internal Control Department, in close collaboration with operational staff.

The procedures describe the risks and control points of the sensitive and manageable processes.

The procedures are presented as flowcharts that highlight:

―	the risks identified and the resources employed to control such risks;
―	the roles and responsibilities of each individual (processing, monitoring, validating, information, archiving);
―	the control points exercised.

Any procedure (creation, update, repeal) is presented to an ad hoc Committee composed of members representing the Group's various business lines (operational and support staff) chosen on the basis of their expertise and knowledge of the company's operations. The procedures are then approved by the Management Committee.

To strengthen their validity and relevance, procedures are also approved by the Risk, Compliance, Audit and Internal Control Department and by the member of the Management Committee responsible for the procedure.

The validated procedures can be accessed by employees on the company's Intranet in France, Germany and Italy.

2.2.2.1.4 Employee training

The Risk, Compliance, Audit and Internal Control Department organises training sessions called "Les Matinales du process". They are aimed at all employees in order to raise their awareness of:

―	the risks inherent in their activity;
―	new applicable regulations;
―	procedures specific to each department or business line;
―	the components of the internal control system, including internal charters (in particular, the Ethical Charter);
―	the role of the Ethics Officer.

In 2023, these training courses focused on the fight against fraud, cybercrime, corruption and the protection of personal data.

In addition, during their induction course all new employees of the Group meet the Risk, Compliance, Audit and Internal Control Department, which presents the department's role and the Group's procedures.

2.2.2.1.5 An established ethics and compliance system

Covivio has placed among its values not only compliance with regulations and internal procedures, but also compliance with rules of professional conduct and ethics, the proper implementation of which is ensured by the Group Compliance Officer and the Ethics Officer. The company uses a complete Europe-wide procedure that provides guidance on the regulations and proper conduct to be adhered to by the company, its managers and corporate officers, as well as all employees and partners.

This system is described in more detail in Section 3.6.2 of this Document.

2.2.2.2 Structured organisation

2.2.2.2.1 Risk mapping

For over ten years, Covivio has been mapping risks to better understand the events which could have an adverse impact on the company's results, monitoring changes to these risks and improving the way they are managed. Significant risks are presented in Sections 2.1 et seq. of this Document. In addition to the general risk mapping, a corruption risk mapping is also carried out and updated in accordance with the Sapin 2 law.

2.2.2.2.2 Incident database

Incident databases have been set up in France, Germany and Italy. They make the mechanisms for managing risks more efficient, by recording past incidents, to prevent their re-occurrence and limit their consequences.

This incident database provides Covivio's employees with the means to assess risks in a quantitative and qualitative manner, by setting the following objectives:

―	supporting employees in incident management, notably regarding incidents that have never been reported;
―	characterising these incidents by assessing their financial impact;
―	producing analysis and summary reports;
―	proposing solutions to contain these risks and any occurrences or repeated occurrences;
―	allocating the necessary resources to do so.

2.2.2.2.3 Internal control manual

The internal control manual aims to improve the governance of internal control and risk management.

The manual highlights recent changes in the internal control system in terms of monitoring recommendations, implementing procedures and standards set by the AMF relating to governance, risk management and key information system elements.

2.2.2.3 Control activities proportionate to risks

The control activities in France and abroad are designed to mitigate the risks that could affect the achievement of the company's goals. The frequency of controls is adapted to the scale and nature of the risks.

2.2.2.3.1 Control of risks on investments, disposals and financing

In accordance with the rules of governance, decisions relating to the highest risks are placed, in excess of certain amounts, under the control of the Board of Directors and its specialised Committees. This concerns in particular:

―	acquisitions and disposals;
―	medium- and long-term financing;
―	business plans and budget objectives;
―	principal strategic decisions.

Other risks fall under the control of the Chief Executive Officer. Once a month, the Directors concerned present their projects, developments and activity reports to the Chief Executive Officer.

In 2020, Covivio appointed a Group Risk Manager, a member of the Covivio Executive Committee, whose mission is to provide General Management, in addition to a detailed risk analysis, an independent insight into the risks inherent in the Group's operations prior to their presentation to Governance bodies.

2.2.2.3.2 Control of Group activities

Control of proprietary companies, management companies and functional departments.

Control points relative to operating activities concern actions needed to:

―	deliver the budgeted receipts:
―	control operating expenses related to assets;
―	control direct operating expenses (personnel costs, appraisals, asset management, etc.).

Group Management Control is responsible for controlling compliance with the budgets.

The functional departments are controlled on a monthly basis with regard to cost management and budget compliance.

2.2.2.3.3 Compliance Committee in Italy

To ensure its permanent establishment in Italy, Covivio has complied with the provisions of Legislative Decree 231 of 2001, "Modello 231", and as such relies on a Compliance Committee composed of two members appointed by the Board of Directors. It ensures that updates to the Modello 231 are applied and it monitors "sensitive activities" (corruption, insider trading, money laundering, employee health and safety, etc.). In this regard, it is mandated by all of the company's stakeholders regarding actual or suspected violations of provisions set out in the Ethical Charter.

2.2.2.4 Control levels and stakeholders

This system is based on the three lines of control set out in the diagram below:

2.2.3 Internal control of accounting and financial information

The internal control of the accounting and financial information of Covivio and its subsidiaries is one of the major elements of the internal control system. It is designed to ensure:

―	the reliability of the published statements and the information communicated to the market;
―	their compliance with regulations;
―	the application of the instructions laid down by General Management;
―	the prevention and detection of fraud and accounting irregularities.

2.2.3.1 Scope

For the production of the Group's consolidated financial statements, Covivio's scope of the internal accounting and financial control includes all the consolidated subsidiaries.

2.2.3.2 Actors and governance

As the consolidating company, Covivio defines and supervises the process of preparing the accounting and financial information published. The Accounting Department is responsible for the management of this process, under the responsibility of the Chief Financial Officer. Responsibility for the production of the consolidated and parent company's financial statements of the subsidiaries is assumed by Covivio's Accounting Department, under the control of the relevant executive corporate officers.

Two persons are particularly involved:

―

the Chief Executive Officer of Covivio is responsible for the organisation and implementation of the accounting and financial internal control and the preparation of the financial statements:

―	he/she presents the accounts to the Audit Committee and to the Board of Directors for its approval,
―	he/she ensures that the process of preparing the accounting and financial information produces reliable data and gives a fair picture of the company's results and financial position;

―

the Audit Committee, as the representative of the Board of Directors, conducts the verifications and controls it deems appropriate. It presents its findings to the Board of Directors before the closing of the financial statements.

2.2.3.3 Production of accounting and financial information

In France, as abroad, the quality of the process of producing the financial statements is the result of, in particular:

―	formalisation of accounting procedures;
―	a consolidation manual, adapted to the functionalities of the consolidation software;
―	the validation and updating of accounting schemes;
―	the justification of the balances and the usual reconciliations of validation and controls, in conjunction with the work of Management Control;
―	analytical reviews to validate changes in the principal balance sheet entries and the income statement with operations staff;
―	separation of tasks between commitment powers and accounting activities;
―	review of consolidation reporting for each subsidiary;
―	review of the impact of taxes and disputes.

For every decisive event, a specific note is drawn up analysing its impacts on the financial statements of the entities and on the consolidated financial statements.

The reliability of processes enables Covivio teams to devote more time to control activities.

2.2.3.4 Production of the consolidated financial statements

For the preparation of the consolidated financial statements, the Accounting Department of Covivio has written a detailed consolidation manual that contains specific instructions for French and foreign subsidiaries.

The consolidated financial statements are prepared using a software package accessible to all of Covivio's accountants. This manual is updated regularly to comply with IFRS requirements and the specific characteristics of the various operational and financial activities of Covivio and its subsidiaries. The consolidated entities have a single accounting plan. The processed data is uploaded in the programme in data packages.

At each half-yearly and annual closing, the accountants of the various consolidation sub-levels receive detailed instructions prepared by the Accounting Department.

2.2.3.5 Control of the communication of financial and accounting information

The Chief Executive Officer coordinates the closing of the financial statements and conveys them to the Board of Directors, which also reads the report from the Chairman of the Audit Committee.

The Chief Executive Officer defines the financial communications strategy. The press releases about the financial and accounting information require approval from the Audit Committee and Board of Directors.

Covivio applies the EPRA Best Practice Recommendations, notably when presenting the financial statements and performance indicators. This presentation enhances readability and enables comparisons with real estate investment trusts (REITs) which publish in the same format.

2.2.4 Insurance system

2.2.4.1 General policy

Covivio has an insurance policy covering the Group's operating risks. The aim of this policy is to obtain complete cover on the insurance market appropriate to the activities carried out and the risks incurred by the company. These guarantees are taken out with leading insurers, all of which have a good financial strength rating and are part of the Group's risk management policy, which is actively and dynamically managed by the Covivio's Insurance Department. The main risks covered are property damage and acts of terrorism/attacks that could affect the Group's real estate portfolio, as well as civil liability that the company could incur in the course of its activities as a real estate professional, property owner and manager, as a co-working services provider, and also in the context of construction and real estate development operations.

Covivio has also taken out an insurance policy against cyber-risks that supplements its insurance cover against the risks of fraud and cyber-attacks.

In 2023, policies were generally renewed with cover levels maintained.

Covivio's insurance partners include leading insurance companies such as Allianz, Chubb, Zurich, MMA, Liberty Mutual, XL/Axa, Generali and AIG.

2.2.4.2 Description of levels of cover

2.2.4.2.1 Real estate portfolio insurance

The real estate portfolios are insured for their reconstruction value, with extended cover for "indirect losses" and "loss of rental income/operations". The contractual cover limitations on the policies taken out are all adapted to the specific features and value of the insured portfolio.

In addition, the company receives advice and support from its insurers' engineering prevention services each year. Covivio makes every effort to comply with the recommendations of its insurers and thus maintain its assets in a constant state of safety with respect to fire hazards and insurability on the market. Covivio's insurance programmes comply with the directive concerning the freedom to provide services, thus covering Covivio's assets located in the European Economic Area and the UK.

Covivio systematically takes out legal insurance coverage for all its real estate restructuring or new construction projects. Kinds of insurance include "works damage" and "property developer", "constructors all risk", "operating losses/rental losses" and "civil liability of the project owner/developer", in order to financially secure all its development operations at each stage.

2.2.4.2.2 Liability insurance

The financial consequences of any legal disputes arising from personal injury, damage to property and other types of damage suffered by third parties and attributable to misconduct in the performance of the company's activities, and the activities of its subsidiaries including Wellio, or arising from its real estate portfolio and all the equipment pertaining thereto, are insured under a specific insurance policy which provides a high level of cover in line with the scope of the portfolio and the activities carried out.

The personal civil liability of corporate officers and de jure or de facto executives of the company is covered in amounts appropriate to the financial importance of the Group as well as to all of its activities and subsidiaries.

2.2.4.2.3 Insurance of other risks

Covivio has taken the necessary measures to protect its interests and those of its shareholders with regard to exposure to financial risks resulting from acts of fraud, malfeasance or computer malpractice, by subscribing to a specific insurance programme offering the company a high level of guarantee. In response to heightened cyber-risks, Covivio has also taken out an insurance policy with an insurer enabling it to benefit from cover against cyber-risks.

In addition, in the event of events likely to affect Covivio's image and reputation, insurance coverage for certain incidents has been taken out, enabling it to finance the intervention of a communications firm specialising in crisis management. This financial solution is part of the plan established by Covivio in the event of its crisis response unit being activated.

2.2.4.2.4 Professional portfolio insurance (offices, IT, vehicles)

Covivio's business assets, which include the walls of the offices the company operates, as well as their contents (furniture, fittings) and IT equipment, are insured under specific policies offering Covivio extended coverage for various events. The specific insurance contract for damage that could affect Covivio's information systems includes additional coverage that has been adapted to the conditions and particularities of the company's "Business Continuity Plan". Company vehicles are covered for all risks by a "car fleet" policy, the insurance characteristics of which are reviewed annually, and the personal vehicles used by employees on an occasional basis in the course of their duties are covered by a "Mission Car" policy.

2.3 Trends and outlook for 2024

As a follow-up to the actions rolled out in 2023, the Risk, Compliance, Audit and Internal Control Department will ensure the full and in-depth implementation of the year's audit plan in 2024. It also plans to improve the management, identification, understanding and hedging of risks within the Group. The management of cyber risks, as well as compliance with regulations on the protection of personal data as part of the Group's digital transformation and its growing exposure to "operating properties" in the hotel sector, will also constitute major challenges for the Group in 2024.

3 2023 Statement of Non-Financial Performance

Sustainable Development at Covivio in a few key dates

2023 HIGHLIGHTS

New European Directive on non-financial reporting (CSRD)		Publication of the other four objectives of the taxonomy
Formalisation of the biodiversity strategy	Extension of the responsible procurements policy to all Group activities	Publication of a Green Bond framework for Covivio Hotels		Deployment of C4C (Covivio 4 Climate)
Greening of 100% of Covivio Hotels' bond debt and issue of new €500 million green bond	Experiments with BiodiverCity Life, BBCA Exploitation, LCBI (low carbon building initiative) labels		Launch of the Ecowater programme to reduce water consumption in the offices portfolio

Statement of Non-Financial Performance

Every year, the CSR chapter (Chapter 3) of the Covivio Universal Registration Document (URD) sets out the Company's sustainable development strategy. This chapter constitutes the Covivio group's Statement of Non-Financial Performance (SNFP) for the year 2022 and presents all the information required by Articles L. 225-102-1, R. 225-104, R. 225-105, R. 225-105-1 and R. 223-105-2 of the French Commercial Code. It takes into account the first provisions published as part of the European regulation on European "Green" Taxonomy.

This SNFP was prepared with support from the Group's functional and operational departments and presented at various levels within the company. The Board of Directors, with the support of the CSR Committee, is particularly attentive to social and environmental issues related to the company's activity and its Purpose. The inclusion of the latter in the Articles of Association will be subject to shareholder approval at the Combined General Meeting of 17 April 2024.

Chapter 3 also explains how Covivio's low-carbon strategy and objectives and initiatives align with the goal of limiting global warming to 2°C as enshrined in the Paris Agreement of December 2015. In particular, it presents energy consumption and CO ₂ emissions related to building use corrected for climate conditions. The reporting scope and methodology for the information in this chapter are presented in Section 3.7.1. Unless otherwise specified, the data presented in the SNFP is provided on a current basis. Every year, Covivio presents an accurate report on greenhouse gas emissions for each activity, by describing the challenges associated with climate, in compliance with the provisions of Article 173 of the Energy Transition and Green Growth Act and its Decree of 29 December 2015.

Since 2017, this reporting has been aligned with the 17 Sustainable Development Goals (including SDG 13 "Climate action") defined by the United Nations. It gathers information on the company's consideration of the social and environmental consequences of its activity, as well as the analysis of the consequences of this activity on climate change. The financial risks inherent in the effects of climate change seem limited in the short term for the Group (3.3). However, since 2017, Covivio has conducted various specific and more in-depth evaluations to this subject. The action already taken, in coordination with key account tenants, associations, initiatives (Orée, Sekoya, etc.), and organisations such as the Building Scientific and Technical Centre (CSTB) or MSCI, aims to control these risks. In accordance with the GRI Standards framework, the SASB ⁽¹⁾ framework and the EPRA's Best Practices Recommendations on Sustainability Reporting, two reporting controls are carried out by an independent third party (3.8): the first relating to Green Bonds issues, and the second relating to other aspects addressed in Chapter 3. This information is also contained in Covivio's Annual Report on Sustainable Performance (www.covivio.eu/fr). In 2022 and June 2023, Covivio published a climate report, also available on its website (CSR commitments - Covivio).

Global reporting

	UNIVERSAL REGISTRATION DOCUMENT	CLIMATE REPORT	COVIVIO ONLINE	THE MAGAZINE	ETHICAL CHARTER	RESPONSIBLE PURCHASING CHARTER
Targets/ Stakeholders	Investors/Banks/ SRI analysts/AMF/ Individual shareholders/ NGOs	Investors/Banks/ SRI analysts/AMF/ Individual shareholders/ NGOs	Investors/SRI/ Clients and partners/ Suppliers/NGOs/ Employees/Civil society	Investors/SRI/ Clients and partners/Banks/ Suppliers/ Shareholders/ Employees/Civil society/NGOs	Employees/Civil society/ Shareholders/ NGOs/Rating agencies	Suppliers/ Certifiers/Clients and partners/ Employees/Civil society
Where can I find the information?	Financial information section	CSR section	Website and social networks	Publications section	Governance section	CSR section

⁽¹⁾ Sustainability Accounting Standards Board.

3.1 Editorial by the Chief Executive Officer

The year 2023 marks a new turning point in collective awareness of climate issues. It began in the context of an energy crisis and continued with historic heat levels, making the year the hottest on record.

The energy crisis, which started in the autumn of 2022 due to a tense geopolitical context and the shutdown of half of the French nuclear reactors due to heavy maintenance, led to a sharp increase in energy prices, and a risk of power cuts during the winter of 2022/2023. Covivio, which has been working for many years to constantly improve the energy and carbon performance of its assets and to gradually phase out fossil fuels, took part in the national sobriety plan launched to counter the crisis. In this context, we have set up new initiatives based on a strengthened dialogue with suppliers, operators and tenants. An action plan that we are pursuing during the winter of 2023/2024, with the aim of constantly improving the performance of our assets and achieving our carbon trajectory.

2023 was not only a record year in terms of temperatures but also in terms of extreme weather events. Worldwide, people had to suffer droughts, heat waves, and giant fires over the summer. While Covivio's building portfolios are only slightly exposed to physical and climate change risks, as shown by the analyses conducted with MSCI, we are nevertheless committed to developing resilient real estate. We are deploying operational actions to reduce greenhouse gas emissions, control water consumption ("EcoWater" programme), promote the circular economy and preserve biodiversity.

In order to go further in raising employee awareness and involvement in the Group's climate strategy, we launched the "Covivio 4 Climate - C4C" project in 2022. After carrying out a comprehensive carbon assessment of our "corporate" emissions, we conducted various actions in 2023 to raise awareness and engage our employees in order to reduce our direct carbon footprint. We now have an action plan at European level. At our General Meeting of 20 April 2023, we presented a "Say on climate" resolution asking our shareholders to vote on our ambitions and our action plan. It met with broad approval (94%).

2023 was also marked by awareness of the extent of biodiversity erosion, with the Kunming-Montreal Agreement at COP15 for biodiversity in December 2022. In accordance with our long-term strategy to make each site a biodiversity driver, in 2022 we conducted a comprehensive assessment of the impacts of Covivio's economic activities on biodiversity throughout the value chain, using the Global Biodiversity Score (GBS). This work will result in the definition of a biodiversity strategy for mid-2024. They are part of a broader approach, governed by the approach adopted by the future European regulation on non-financial reporting (CSRD) ⁽¹⁾. In view of its application, in 2023 we carried out a double materiality analysis and launched a gap analysis between our ESG reporting and the framework set by the CSRD. The results of this work will be presented next year. In the interests of transparency, we also published our second climate report, in line with the recommendations issued by the climate-related expert group, the Task Force on Climate-related Financial Disclosures (TCFD).

In addition, during the past year, our Foundation also continued to grow. It is now a partner of around twenty charities in Germany, France and Italy. It supports actions based on a common focus: the promotion of equal opportunities. This includes promoting access to education, training, work and the integration of vulnerable groups.

With the support of our Board of Directors and its CSR Committee, and with the strong commitment of our teams, Covivio is leading the way in a transition that is both environmental and social, ambitious and on a human scale. It involves continuing the transformation of the company, its products, services and know-how, with agility and a long-term vision that all contribute to the Group's success and resilience.

Christophe Kullmann, Chief Executive Officer, CEO

⁽¹⁾ CSRD: the final text of the Corporate Sustainability Reporting Directive (CSRD) was published on 16 December 2022 in the Official Journal of the European Union.

With a portfolio of €23 billion (€15 billion Group Share), Covivio's strategy is based on a choice that sets it apart: developing simultaneously in several countries and on several products, all while maintaining the agility that has enabled it to seize development opportunities since its creation in the early 2000s. Active across the entire value chain, Covivio has evolved by cultivating its specificities and values, capitalising on both its financial and real estate expertise. This dual expertise enables it to anticipate changes in its customers and markets, in order to constantly adapt its buildings, services and know-how.

3.2 A long-term strategic vision

Covivio's activity consists of investing to hold real estate assets over the long term, while developing and renovating buildings to constantly improve the performance (technical, environmental, service-related, financial) of its portfolio. Covivio's business model is based on a long-term vision, which is organised along three main lines:

―	Centrality: a stronger presence in the heart of major European capitals and major business and leisure centres offering good market depth and attractive economic outlook;
―	Hospitality: assets and an offering inspired by hospitality, to support the transformation of cities and new customer expectations, expressed in the exercise of its three business lines: hotel business by promoting new concepts, offices by integrating new working methods, and residential (a pioneer in co-living);
―	Sustainability: a commitment to the climate transition for a sustainable and resilient city, by placing CSR at the heart of the business model to accelerate the transformation of the company.

Covivio's unique profile is particularly relevant at a time when flexibility in real estate is a priority, with offerings such as flexible offices, teleworking and nomadic work, coworking, co-living and new "home-style" hotel concepts. By placing people, health and safety, the service dimension and well-being at the centre of our projects, Covivio is supporting the implementation of all transitions (energy, climate, environmental, digital, etc.).

3.2.1 Assert a role of responsible real estate operator

Covivio has established itself as the trusted partner of key accounts that it supports in their real estate strategy. As well as buying portfolios of buildings from major players (Orange, Telecom Italia, EDF, AccorHotels, etc.) under sale and lease back transactions, Covivio has successfully begun the development and refurbishment of buildings. Starting with its very first project in 2008, the Dassault Systèmes headquarters in Vélizy (Yvelines), Covivio has opted for eco-friendly and responsible real estate, a choice that was pioneering at the time, obtaining the HQE (Haute Qualité Environnementale) certification. Covivio occupies a unique position among major REITs, both in terms of its geographical allocation and European coverage and its positioning on three products: offices, hotel real estate and residential. Thanks to its integrated expertise, Covivio is able to control the entire value creation chain.

Covivio's Purpose, "Build sustainable relationships and well-being", expressed at the end of 2019, is part of this long-term vision. This vision is driven by the Group's mission, namely to build on strong know-how in long-term partnerships, and on its ability to create unique living spaces and to contribute to the emergence of more sustainable, resilient and inclusive real estate and cities.

3.2.1.1 Covivio: 3 activities, 12 European countries

Covivio's strategic plan strengthens its European ambitions and its diversification, both in terms of "countries" and "products", with a leading position in:

―	Offices in France, Italy and more recently in Germany, deep markets in which Covivio is developing real estate with the highest international environmental and social standards (52% of portfolio);
―	Residential in Germany, via Covivio Immobilien, as well as in France, through a property development activity mainly focused on the conversion of commercial buildings into housing (31% of portfolio);
―	Hotels in Europe, via Covivio Hotels, which supports the European development of leading players in the sector (17% of the portfolio).

This broad range of products is accompanied by an increasingly diversified range of services: in offices, the development of an innovative pro-working solution under the Wellio brand; in residential, the implementation of a co-living solution; and in hotels, support for new concepts with brands such as NH Hotel Group, Meininger, etc. Its areas of expertise in these three sectors complement each other and are driven by changes in lifestyles and work patterns, and the convergence of services offered in these three categories of assets. As a major player in each of these three segments, Covivio benefits from a geographic diversification that allows it to depend upon complementary economic cycles and markets to optimise the balance of investments, reduce risks and support clients to expand internationally.

3.2.1.2 A business model that creates value in a sustainable way

Since it was created, Covivio has invented a robust business model and occupies a pioneering position in how it develops its business lines. The Group has a recognised ability, among others, to build strong links with companies and local authorities which it supports in their real estate strategies (sales and lease back, modernisation, management, development, etc.). The quality of the partnerships established with key account tenants in Europe, combined with long-term leases, distinguishes Covivio from its peers.

Chapter 4 of the URD provides comprehensive and transparent information on the company's economic and portfolio situation.

The Covivio business model is a creator of value at every stage of the real estate cycle: acquisition or development, management and arbitrage. Profitable for stakeholders, this value creation takes place responsibly and is part of a long-term strategy. Its value chain is made up of solid foundations: strong commitment with its suppliers, qualified human capital, solid governance, innovation strategy, etc. The illustration below summarises Covivio's model with the Group's three strategic pillars at the heart of its business model. The geographical breakdown of activities as well as the revenues generated by activity are presented in Chapter 1 of the Universal Registration Document.

Covivio's Business Model

SUPPORT/CAPITAL ACTIVITIES

Financial stability Investment Liquidity	FINANCIAL €23.1 billion of assets under management, more than 94% in city-centre locations at the heart of major European cities €366 million for Capex and R&D aligned with the EU taxonomy 100% green bonds (€3.9bn) Debt ratio under control at 40.8%
Talent retention Skills Flexibility	HUMAN RESOURCES 1,036 employees with 93.2% on permanent contracts 50% male/female split 22.1 hours of training per employee Maintaining quality of life at work
Asset management Infrastructure Equipment	INDUSTRIAL €1.7 billion Office pipeline/€225 million Residential pipeline 100% of projects delivered and ongoing in 2023 2023 deliveries: - 5 Office projects delivered in 2023 in France and Germany - 528 residential units (238 in Germany and 290 in France) Development of a comprehensive offer: work, travel, live in Europe
Sustainable relationships Responsible procurements Partnerships	RELATIONSHIPS 7-year Weight Average Lease Break 186 suppliers rated by Ecovadis Long-term relationships with partners Partnerships with local authorities and organisations
Climate strategy Biodiversity Resilience	NATURAL Improving the environmental performance of the portfolio (energy, carbon, water) Commitment to combat artificialisation of soils and make every site a driver of biodiversity
Innovation Research Expertise	INTELLECTUAL Property, financial and technical expertise Combating obsolescence Innovation and smart building (digital strategy) Participation in working groups on low-carbon innovations

VALUE CREATION

ECONOMIC VALUE

€1,010 million rental income (€648 million Group Share) in 2023

Dividend paid: -€351.9 million, part-offset by the scrip option with a +€279.1 million take-up

130,900 m ² of leases signed or renewed in 2023 in the Offices portfolio

Ethical relationships (45% of expenses covered by the responsible purchasing policy)

Taxonomy: 36% of net revenue aligned with taxonomy (Operational definition)

SOCIAL AND SOCIETAL VALUE

3 .75% of payroll allocated to skills development (training - France)

€1.7 million over 5 years allocated to the foundation

15,100 jobs sustained in Europe

22 associations backed by the Foundation to fight for equal opportunities

ENVIRONMENTAL CONTRIBUTION

95% of buildings certified, 67% of offices labelled "Very Good" or better

21% cut in tertiary portfolio consumption between 2019 and 2023

-12% reduction in water consumption over the same period

A LONG-TERM VISION

Revenue up 6% on a like-for-like basis

Carbon trajectory: -40% emissions between 2010 and 2030 across all activities

3.2.1.3 A model that accelerates the mobilisation and transformation of its value chain

Covivio's activities related to its three products (office/residential/hotel) are represented in the business model. They are also levers of value creation for the Group and its stakeholders.

CSR is integrated at the heart of Covivio's activity, taking into account the interests of stakeholders and mobilising the value chain on the three real estate products, throughout the life of the buildings:

Business activity	INVEST/DEVELOP	OPERATE/OPTIMISE	NEGOTIATE/SELL
Integration of CSR	Consideration of social and environmental criteria from the acquisition or design phase of a building to ensure consistency with the Group's strategy (3.3.1).	Implementation of an ambitious work plan in terms of environmental performance, supported by strong partnerships with our customers (3.4.3).	Identification of non-strategic assets to finance Covivio's investment plan and disposal of mature assets, sometimes developed by Covivio, benefiting from a good environmental performance.
Main external players concerned	Suppliers (construction and consulting firms in particular), sellers, investors	Customers, Facility Managers	Buyers, investors

To go further in this approach, Covivio also endeavours to create living spaces for its customers by offering innovative offers: such as the "operated office" (3.3.1.1), co-living, of which it has one of the pioneers in Germany, or the creation of shared proworking spaces via the Wellio offer. Covivio's service offering is broken down into five areas detailed in Chapter 3.4.3.1:

―	Well-being, comfort and health: the health crisis has raised the level of tenant expectations. The measures adopted by Covivio have strengthened its trust capital;
―	Mobility and accessibility: a significant criterion for users in their choice of location, both for the facilities offered to their employees and with regard to the positive impacts on their own carbon footprint;
―	Catering: this service, to which many employees are attached, offers Covivio the possibility of presenting a qualitative offer which makes it stand out;
―	Biophilia: this is the interest of humans in living things. Covivio strives to reconnect the occupant with nature, a well appreciated factor that is expressed through the development of green spaces (gardens/green terraces, etc.) and the promotion of biodiversity (3.4.1.4.1) in all of the Group's developments;
―	Smart building: Covivio's digital strategy for the operation of its buildings is also a differentiating factor. Covivio relies on the skills of its technical teams, the R2S and WiredScore labels, the use of connected objects (sensors, presence detectors, etc.) and metrology to optimise the management of facilities and tenant satisfaction, while ensuring better cost control.

3.2.1.4 The UN's 17 Sustainable Development Goals for 2030

Signatory of the Global Compact in 2011 and having reached the GC Advanced level in 2018, Covivio has explicitly referred to the 17 UN SDGs since 2016, in particular in its various CSR publications that can be found on its website or on the UN's dedicated website. Covivio's multi-year CSR objectives presented in this document are consistent with the UN SDGs to which they contribute, the 10 principles of the Global Compact, and the 2°C trajectory of the December 2015 Paris Agreement.

Covivio also adheres to the OECD Guidelines for Multinationals and the eight fundamental conventions of the International Labour Organization (3.3.4.1).

The study conducted internally in 2017 and added to in 2018 and again in 2020, based on an analysis matrix, made it possible to characterise the nine major SDGs for Covivio, given its targets:

The challenges represented by each of these objectives occupy an important place in Covivio's CSR policy and its business model. Each refers to the actions carried out within the portfolios of buildings developed and held by Covivio as well as internally, within the corporate scope of the company, as an employer.

Appropriation of the nine major SDGs by Covivio

The following pages show how the actions carried out by Covivio contribute positively to these nine SDGs as well as the eight others, with variable impacts.

3 - Good health and well-being: provide the occupants of Covivio buildings and its own employees with premises that prioritise comfort, health and safety, as well as well-being, based in particular on the choice of materials, layout and optimisation of spaces, which have a positive impact on well-being, work capacity, the ability to attract talent, and ultimately, health. Example target: 3.9 - By 2030, significantly reduce the number of deaths and illnesses due to hazardous chemicals, pollution and contamination of air, water and soil (3.3.3.3) as well as concrete actions to fight Covid, for example.

5 - Gender equality: achieve gender equality and pay equity. Example of target: 5.5 Ensure that women participate fully and effectively in management positions at all levels of decision-making, in political, economic and public life, and have access to these positions on an equal footing (3.5.1.5).

7 - Affordable and clean energy: implement an ambitious policy of reducing energy consumption (building certifications, green electricity contracts, etc.) and participate in working groups to gradually integrate concrete solutions in buildings to meet the challenges of the energy transition. Example of target: 7.2 - By 2030, significantly increase the share of renewable energy (3.3.2.3.3).

8 - Decent work and economic growth: contribute to the dynamism and economic growth of the regions by supporting several thousand jobs in Europe, through its various business lines. Example target: 8.5 - Achieve full and productive employment by 2030 and ensure decent work and equal pay for work of equivalent value for all women and men, including young people and people with disabilities (3.5.1.5).

9 - Industry, innovation and infrastructure: be part of a more sustainable and resilient city approach, by designing and renovating its buildings in the most circular and socially acceptable way possible, while taking into account the environment and stakeholders and supporting innovation within the value chain. Example target: 9.1 - Build quality, reliable, sustainable and resilient infrastructure, including regional and cross-border infrastructure, to support economic development and human well-being, with a focus on universal access, at an affordable cost and under conditions of equity (3.3.1).

11 - Sustainable cities and communities: creating responsible real estate and promoting a more resilient and inclusive city by being a player in the construction and growth of major European cities. Example of target: 11.6 - By 2030, reduce the negative environmental impact of cities per capita, including by paying particular attention to air quality and management of waste, particularly by municipalities (3.4.1).

12 - Responsible consumption and production: commit, via development and asset management activities, as well as via the supplier chain, to responsible production and consumption. Example target: 12.6 - Encourage companies, especially large and transnational companies, to adopt sustainable practices and to include sustainability information in their reports (3.4.1.1).

13 - Climate action: adopt a global vision to reduce the carbon footprint and that of buildings, at each stage of their life cycle. Example target: 13.2 - Incorporate climate change actions into national policies, strategies and planning (3.3.3.1).

15 - Life on land: commit to the fight against urban sprawl, the preservation of biodiversity, the emergence of the circular economy, etc., based on an action plan shared at European level. Example of target: 15.5 - Take urgent action to reduce the degradation of the natural environment, halt the loss of biodiversity and, by 2020, protect endangered species and prevent their extinction (3.4.1.4).

3.2.2 A performance built jointly with stakeholders

To reach high levels of financial and non-financial performance, Covivio is attentive to its stakeholders and works in close collaboration with them to develop the most appropriate real estate solutions together. In 2012, Covivio carried out a materiality analysis, which has been regularly updated to take into account the challenges faced by each of the stakeholders.

3.2.2.1 A driving force at the heart of the sector

The building and real estate sector brings together extremely diverse business lines and expertise, benefiting the activity of each of them: architects, technical design offices, communities, surveyors, bankers, suppliers, marketeers, legal professionals, client users, investors, associations, media - and of course employees and tenants.

Covivio is located at the heart of this relationship network. Aware of its economic weight and leadership role, the Group wants to be exemplary in the management of its activities and its relationship with its various stakeholders.

Positioning of Covivio in the building/real estate sector

Covivio relies on the complementarity of its traditional lease and flexible contract offers, as well as on its service culture to provide ever more tailored solutions to its customers. Customer surveys, satisfaction surveys and design thinking workshops enable the Group to go further and involve its stakeholders in the design of the spaces and services of tomorrow that it develops.

3.2.2.2 Meeting stakeholder expectations

Since 2010, a mapping of the Group's stakeholders has made it possible to improve how their expectations are taken into account and create a materiality matrix. The main stakeholders were first selected from among the commercial community (key account tenants, suppliers), the financial community (shareholders), Human Resources (managers, employees), public authorities (local governments), and civil society (associations, media). Interviews with internal and external stakeholders have identified their CSR expectations, constraints and priorities. These stakeholder groups were then ranked according to their interest and impact on the company's business, resulting in the mapping shown below as well as the introduction of appropriate tools for dialogue. They were reviewed when the Group's Purpose was announced.

Identification and involvement of stakeholders throughout the value chain

Given the diverse range of main stakeholders identified and their expectations, Covivio has gradually introduced communication tailored to each stakeholder. To do this, the Group has used both internal and external communication methods, notably social media apps such as tenant extranets, Twitter, LinkedIn, Yammer, etc.

On the occasion of the expression of its Purpose, Covivio decided to create a Stakeholders Committee to ensure more regular and structured consideration of the interests of stakeholders by the Group's governance bodies.

Its missions: to carry out a long-term reflection on Covivio's future challenges and take them into account in the strategy.

Its objectives: to involve stakeholders in the reflection on the Covivio product; to monitor major disruptions and long-term trends; to review the views of stakeholders to ensure that these disruptions are taken into account in the Group's development projects and strategy.

The Committee met twice in 2023. Its work focused on the erosion of social cohesion, ways of making room for the most vulnerable people in a city, concrete ways to create diversity and a collective vibe, and allow city dwellers the opportunity to slow down. A new report on the work of this Committee will be provided to Covivio's Board of Directors (5.3.2.3.3).

Tailored communication methods

Main stakeholders	Expectations of stakeholders	Communication method	Chapter
Clients	Co-construction of innovative, tailored solutions to support each stakeholder's real estate strategy in the best possible way	Partnership Committees and Sustainable Development Committees	3.4.3
Shareholders	Visibility and longevity of the business model and profitability	Letter to shareholders, press releases, financial releases, road shows, investor days, website, etc.	3.6.1.5
Rating agencies	Transparency of financial and non-financial communications	Universal Registration Document, report on sustainable performance, climate report	3.6.1.1
Employees	Follow-up support for professional development and training	Intranet site and internal communications tools	3.5
Local authorities and non-profit organisations	Awareness of their socio-economic challenges	Sustainable performance report, climate report Involvement in various collaborative projects, conferences, etc.	3.4.1.1
Suppliers	Fair business practices	Responsible Purchasing Charter Assessment via EcoVadis system	3.4.2

3.2.2.3 Covivio's material CSR challenges

The CSR issues identified by external stakeholders were ranked and cross-referenced with those of Covivio, to create the materiality matrix shown below. Reassessed each year to ensure that results remain relevant over time, this study enables Covivio to focus concrete actions on the most significant challenges for Covivio and its main stakeholders. This approach is taken with a view to continuously improving upon our ability to respond to stakeholders. It has enabled policies and relevant performance indicators to be established based on GRI, IIRC and SNFP guidelines.

Covivio materiality matrix

This matrix is gradually evolving with the transitions underway: digital, new services, resilience, inclusive and sustainable city, etc. Covivio's CSR policy covers all issues present in this matrix, with greater emphasis on the most significant ones. The challenges identified here are consistent with the major CSR risks identified during the risk map created in 2018 (3.2.4), demonstrating the alignment of the most material issues with the Group's business and strategy.

The creation of a dual materiality matrix was launched in 2023, with a view to the implementation of the CSRD (Corporate Sustainability Reporting Directive), the application of which will be effective next year, for the 2024 fiscal year. Based on interviews conducted and working groups led at the European level to collect the considerations of the various stakeholders, this analysis of double materiality and identification of ESG issues consisted in particular in carrying out a rating of the severity of the financial materiality and impact. Simple materiality analyses the impact of ESG issues on the company's financial performance, business continuity and reputation. The double materiality adds to the impact of the company on these same issues, whether positive or negative. The results of this matrix will be presented in next year's report. This work is supplemented by an analysis of the differences between the ESG data and information already available in the Group's various publications, starting with this SNFP, and the requirements of the CSRD.

Double materiality analysis methodology

As for Human Rights, Covivio is a signatory of the Global Compact (GC Advanced), respects its 10 principles and applies the eight fundamental conventions of the International Labour Organization (3.3.4). In addition, the Group operates in countries with very protective laws in this area ⁽¹⁾. This issue is therefore moderate in the performance of its activities, but Covivio remains, of course, very attentive to these subjects. In addition, Covivio implements an active policy in terms of philanthropy and skills-based sponsorship via its Corporate Foundation (3.4.1.3.2).

The priorities in the matrix are cross-referenced with the GRI Standards in an attached section (3.7.5).

3.2.3 Inventing new uses for real estate

While innovation refers to the introduction into the market of new products, services or processes, this is only meaningful for Covivio if it succeeds in sustainably transforming the way people work, travel and live. For several years, Covivio's innovation strategy has been constant and has been based on three areas: developing new uses, improving the quality of its portfolio and finally focusing on open innovation.

3.2.3.1 Innovate to anticipate new uses

Enriched square meters

While, during health crises, many employees experienced the benefits of remote working, the time has come to realise that collective work remains essential to the collective dynamic, the sense of belonging and the corporate culture. The challenge is to offer corporate customers workspaces that adapt to their new needs. In 2023, Covivio strengthened its "operated office" offering. In addition to the rental of space, Covivio is a unique partner able to manage each real estate project from "A to Z". From feasibility studies, connectivity consulting to the implementation of services (concierge, catering, IT, etc.), the "All-in-One" approach offers increased value in the way the office building is used.

Opening up to the city

With a portfolio of 325 hotels, 89% of which are located in the main European capitals, Covivio is one of the main hotel owners in Europe, with 44,700 rooms. To integrate the city into the life of the hotel, our establishments innovate by inviting in residents of the neighbourhoods where our hotels are located: restaurants, bars, spas, bakeries, co-working spaces, etc. The hotels are open to local residents and visitors. A fundamental trend intended to make these places hybrid spaces in which to work or relax.

Reinventing the customer journey

Digital transformation has led to a virtualisation of the customer journey. For the benefit of users, greater autonomy and extended customisation. To rise to these new challenges, Covivio has continued to roll out its building application by adding new services for Covivio and Wellio customers. To date, more than forty buildings benefit from this service application for services related to catering, workspace reservation, access control, comfort and well-being data, and more.

⁽¹⁾ https://www.echr.coe.int/documents/d/echr/convention_ENG

3.2.3.2 Innovate to improve the quality of the portfolio

Monitoring indoor air quality and optimising energy consumption are based on technological innovations that make buildings more virtuous.

For nearly five years, Covivio has been operating several technological solutions based on the Internet of Things and the collection and processing of multiple kinds of data. Whether these data concern indoor air quality (partnership with Octopus Lab) or the optimisation of energy consumption in buildings (Powerbat digital platform), 2023 has made it possible to develop innovation in line with the company's sustainable development strategy. In detail, these include:

Saving water

Based on an inventory carried out on the entire office portfolio, EcoWater (3.3.2.4.3), an internal programme intended to control the water consumption of buildings, develops actions around four pillars: day-to-day economy, leak detection, real-time monitoring and mobilisation of the ecosystem. This programme, which is intended to be replicated across the entire office portfolio in Europe, aims to exceed the objective of the government Water Plan of reducing water withdrawals by 10% by 2030. The innovation component of the EcoWater programme concerns the implementation of new solutions led by start-ups or industrial groups.

Focus on innovative construction materials and processes

In France, the CR 2020 framework has dual performance demands, in the areas of energy + carbon and life cycle analyses, and encourages the implementation of new materials and equipment in favour of low-carbon buildings. In this regard, and for both new construction and renovation projects, Covivio teams have implemented several initiatives using new materials or new construction processes (3.1).

Developing new energies

In a context of rising energy prices, new energy sources must be studied in order to achieve a diversified and innovative energy mix. Whether geothermal, photovoltaic or biomass, Covivio innovates by installing these alternative energy sources (3.3.2.3.3).

3.2.3.3 Innovate to open up to new partnerships

Developing an innovation ecosystem including collaboration with numerous start-ups allows Covivio to test new solutions to offer to our customers or to implement in buildings. Thus, at the European level, Covivio works directly with around fifty innovative companies in areas as varied as automated space management, improving building comfort, urban mobility and new catering offerings.

As part of this open innovation approach, Covivio regularly calls on its long-standing partner, Impulse Partners. Covivio is a partner of Sekoya, co-founded by Impulse Partners and Eiffage, a carbon & climate platform bringing together large groups, SMEs and start-ups with low-carbon technical solutions.

The innovation challenge also consists of studying the potential of new technologies by imagining concrete outlets that will lead to productivity gains or service improvements. This is how the Innovation Department is at the forefront of studying use cases, for example, in terms of artificial intelligence and new energy sources.

Lastly, and to support all of these objectives, Covivio relies on specific innovation governance designed to identify new trends. An Innovation Committee brings together the company's main operational departments every two months. This body defines, prioritises and implements the innovation strategy.

Three examples of Covivio - start-up partnerships

Circouleur	Octopus Lab	SofiaLocks
Circouleur (acquired in 2024 by Unikalo) manufactures recycled paints. These are then reformulated to create a new premium quality paint.	Octopus Lab is a developer of indoor air quality forecasting software, which also makes it possible to limit the energy consumption of buildings.	Founded in 2015 in Milan, SofiaLocks develops an innovative system for the management and access control of office buildings. Based on IoT and Cloud technologies, it automates building access authorisations, space reservations and payment systems. In 2019, SofiaLocks was selected by Covivio as the access solution for several of its Wellio pro-working spaces.
Covivio has chosen to use these virtuous paints, in particular as part of the So Pop project in Paris/ Saint-Ouen, delivered in 2021	In 2020, Octopus Lab won the "Air Quality Challenge" launched by Covivio in partnership with EDF and Impulse Partners. At the end of 2023, around ten buildings owned and managed by Covivio were benefiting from the Octopus Lab technology.
(30,000 m ² ).

3.2.4 Identifying risks and seizing opportunities

Chapter 2 of this Universal Registration Document describes the risk factors which may have a significant effect on the financial and non-financial position of Covivio or on its results. These risks are mapped according to their potential impact and probability of occurrence. They are explained along with their potential impacts and the control mechanisms put in place by the Group to prevent them. The corresponding action plans are periodically followed up on by General Management, the Audit Committee and the Board of Directors. In 2020 and 2021, the implementation of health measures was facilitated by the implementation of an already operational continuity plan, the practice of teleworking, which is already widespread within the Group, the flexibility of IT tools and the strong commitment of teams and management.

Dedicated mappings are also carried out to cover specific families of risks. Thus, in 2018, a specific mapping of CSR risks was carried out internally at Covivio. A study on cyber risks was carried out in 2022 on the France Offices portfolio. This enabled the company to characterise the solutions to be prioritised in order to reduce the risk for building management networks and equipment. This audit also confirmed the quality of connectivity services offered to occupants in these buildings. In addition, over and above the regulatory aspect, a risk mapping related to purchases was carried out within the Group for the first time in 2020, with the support of an independent specialist advisor; it is presented in Chapter 3.4.2.4. Covivio remains attentive to regulatory changes, in particular concerning the future Corporate Sustainability Reporting Directive (CSRD), which will replace the current regulations on transparency in CSR reporting.

Corporate risk monitoring process

3.2.4.1 Methodology for selecting and ranking the main CSR risks

A study on CSR risks was conducted by the Sustainable Development Department in coordination with the Audit and Internal Control and Risk Management Department to ensure, in particular, the compliance of its SNFP with the framework defined on this point. This study was conducted with a panel of French, German and Italian Covivio managers in charge of operational or functional departments exposed to the identified risks. The first stage consisted of a series of interviews conducted internally with the panel to define the universe of CSR risks on a European scale. The second stage focused on the rating of the risks identified, according to three parameters: reputation, frequency and level of control. The CSR mapping therefore distinguishes between:

―	inherent risks, considered in absolute terms given Covivio's industry and activities;
―	residual risks, assessed after consideration of the actions conducted by Covivio to control those risks.

This mapping was validated by the Executive Committee and reported to the Board of Directors. Since it failed to reveal any major deficiencies in controlling inherent risks, the study did not result in immediate corrective measures. In accordance with the requirements of the SNFP, specific interviews are conducted between the independent third party as part of its annual audit and the employees most affected by the nine risks identified.

3.2.4.2 List and description of the main CSR risks and opportunities

The risk mapping study revealed nine major CSR risks. Issues such as resilience and well-being and health are included in several of these nine risks, which is why they do not appear as such.

Summary of Covivio CSR risks

The Task Force on Climate-related Financial Disclosures (TCFD) recommends the quantification, financial or otherwise, of certain carbon-related risks. Reporting based on the TCFD is presented in the introduction to Chapter 3.3 and gives rise to the publication of Covivio's climate report, available on its website.

Main impacts/risks/opportunities

Risk	Summary of potential impacts	Main control mechanisms	Main risk management costs	Main financial opportunities
Asset obsolescence/ Green value/Products anticipating societal changes	Ownership of assets with low potential for value creation, loss of attractiveness of the portfolio or additional cost of work, competitive disadvantage due to the absence of certification or unattractive location.	• Building flexibility	• Cost of certification and adoption of the best environmental standards
3.3.1		• Environmental certifications and performance
Managing operating expenses	Risk on the attractiveness of buildings related to the increase in expenses for customers and risk on the liquidity of the asset in a regulatory context encouraging the energy efficiency of buildings.	• Carbon trajectory and annual environmental reporting	• Capex plan of €254 million Group Share to achieve the objectives of the carbon trajectory	• Liquidity of assets
3.3.2	Pressure on available resources (energy, water), particularly in certain areas.	• Multi-year work plan including environmental improvement of the portfolio		• Competitiveness of buildings
		• Raising customer awareness of environmental issues		• Attractiveness of Covivio for its partners
				• Added value for customers
Security/ Environmental safety/Regulatory compliance	Lack of security on buildings or resilience of assets leading to the inability to manage major crises that could cause a claim, an accident, a health risk, or even engage the company's liability.	• Environmental and health risk control and management system	• An estimated 0.2 to 0.5% of the Group's portfolio value at risk (MSCI - physical climate risks)
3.3.3		• Portfolio resilience studies
Integration within the sustainable city	Issue of integrating the company into its region and ecosystem, necessary for business continuity, particularly in the context of development projects. Risk of obsolescence of buildings in the event of non-accessibility (PRM and public transport).	• Strong partnership relations with local authorities	• Study costs	• Development of projects in attractive areas
3.4.1		• Promotion of local purchases as part of developments	• Compliance of buildings
		• Societal commitment via the Foundation	• Budget of €1.7 million over 5 years for the Foundation
		• Biodiversity strategy
Responsible supply chain	Responsibility of the company due to insufficient diligence with respect to its partners to ensure compliance with ethical, social and environmental principles.	• Implementation of the responsible purchasing policy, strengthened by the deployment of the system implemented with EcoVadis at the European level	• Monitoring and reporting costs	• Trusted relationships with suppliers
3.4.2		• CSR clauses in contracts		• Reputation
Quality of relations with external stakeholders (clients)	Inability of the company to develop relationships of trust with its clients or to appear as an actor attentive to the concerns of its external stakeholders.	• Partnership relationship integrated at the heart of the business model	• Budget dedicated to customer relations	• Long-term financial stability
3.4.3		• Measurement of customer satisfaction and associated action plans where applicable
Skills/ Attractiveness/ Diversity	Potential loss of skills and know-how in the event of high turnover or low capacity to attract, retain and develop talent; potential psychosocial disorders; or discriminatory practices, inducing a high reputational risk.	• Skills development policy	• 4% of payroll dedicated to training	• Business continuity
3.5.1		• Awareness and specific training on PSRs, diversity and harassment		• Employer brand
Fraud/ Corruption/ Ethics	A breach of professional ethics and the Group's internal procedures, or insufficient control of commercial and financial processes could lead to a negative reputational impact, loss of stakeholder confidence, financial losses, or hindrance to the development of activities.	• Group Ethics Charter	• Costs related to the implementation of procedures	• Identification of Covivio as a reliable player
3.6.2		• Internal procedures and dedicated team		• Structuring of activities
Data protection/ Smart building	Exposure to the risks of cyberattacks, loss, damage or theft of data in the exercise of its business. Risk of asset obsolescence in the event of failure to meet customer expectations in terms of connectivity.	• Business continuity plan	• Technological costs	• Reputation
3.6.3		• Internal procedures (in particular for the GDPR)		• Competitive advantage related to smart aspects
		• Smart Building Team

The main financial opportunities mentioned above are to be considered in terms of the Group's value creation in financial, environmental and social terms.

The Task Force on Climate-related Financial Disclosures (TCFD) recommends the quantification, financial or otherwise, of certain climate change-related risks. They are detailed in the dedicated reporting (3.3) as well as in the section dedicated to the Group's carbon trajectory. Since 2022, Covivio has published a climate report drafted following the TCFD recommendations as closely as possible. This document is available on its website.

3.2.5 A global and integrated sustainable development strategy

By communicating its Purpose statement at the end of 2019, Covivio confirmed the importance placed on social and environmental issues at the core of its corporate and portfolio strategies. By developing its economic model, Covivio goes beyond the mere search for profit, considering that this objective must form part of a broader mission including all those participating in the success of the company.

Covivio's sustainable development strategy covers all its activities in Europe and all levels of the company. Built on the experience from the analysis of material issues and CSR risks, this strategy sets out an action plan (3.2.6) that echoes the various objectives conveyed by Covivio's Purpose.

The four components of this CSR strategy are common to each of the activities: Sustainable buildings, Societal, Social and Governance.

SUSTAINABLE BUILDINGS	SOCIETAL	SOCIAL	GOVERNANCE
UPDATE THE PORTFOLIO TO INCLUDE THE CHANGES THAT AFFECT SUSTAINABLE BUILDINGS, USES AND HEALTH	BUILD A SMARTER, MORE INCLUSIVE AND SUSTAINABLE CITY	DEVELOP, DIVERSIFY AND RETAIN HUMAN CAPITAL	GUARANTEE ETHICAL PRACTICES
Promote responsible and high-performing real estate in the areas of energy, the environment and society and which creates long-term value for the Company and the community	Encourage eco-responsible practices and innovation in transport, biodiversity and waste, and take part in sharing knowledge alongside local stakeholders	Enhance employees' skills through innovative policies and encourage their mobility, diversity and ability to adapt to change	Guarantee an ethical and transparent framework that ensures exemplary practices at all levels of the Company

3.2.5.1 European planning and coordination of Covivio's CSR strategy

The definition, monitoring and operational deployment of the CSR policy are based on several mechanisms at all levels of the company.

The Sustainable Development Department

It drives and coordinates initiatives within the various levels of the Group's activities, in direct contact with General Management and the Board of Directors via the CSR Committee. This dedicated, interdisciplinary team engages with all of the Group's business lines, providing technical expertise to their various departments, and playing an instrumental role in terms of innovation, raising awareness and reporting.

Country Green Committees and operational committees

In each country, "Green Committees" enable actions and achievements to be noted by the CEO and local managers, in coordination with the business lines and support functions, and with the support of awareness-raising actions (e.g. Green Meetings) and training (led by HR). In order to apply the strategy at the operational level, the Sustainable Development Director is in charge of a network of nearly thirty representatives within the Group. In France, in connection with the environmental annexes, he or she jointly heads the Sustainable Development Partnership Committees with the asset manager and technical manager of the asset, as well as the representatives of the key account tenants involved.

The Sustainable Development Committee

It brings together monthly meetings including Christophe Kullmann (Chief Executive Officer), Yves Marque (Chief Operating Officer) and Jean-Éric Fournier (Sustainable Development Director). It makes it possible to review the progress of the CSR action plan, to take note of the measures to be taken to implement the sustainable development strategy and to give these decisions the necessary echo from the Executive Committee and the Board of Directors.

The Board of Directors and the CSR Committee

Each year, the Board of Directors reviews the Group's CSR strategy and approves this Statement of Non-Financial Performance. In order to formalise the Board of Directors' commitment to the Group's sustainable development strategy, a CSR Committee was created in July 2021. The first meeting made it possible to define its main missions: validation of the CSR strategy and monitoring of its implementation, to have a forward-looking role on major social and environmental trends, to provide expertise to the Board and the other Board Committees. To this end, the CSR Committee interacts with the Audit Committee to review ESG risks and with the Appointments and Remunerations Committee concerning CSR criteria in executive remuneration. Chaired by Alix d'Ocagne, the CSR Committee will take into account the expectations of stakeholders and the alignment of the strategy with Covivio's Purpose (3.6.1). 71% of Directors have CSR skills.

Cross-functional and external committees involved in the CSR strategy

The purpose of the Innovation-Transformation Committee is to share information on innovation topics and to validate certain operational choices and tools, particularly with regard to sustainable development (carbon trajectory, etc.), digital technology (BIM, BOS, etc.) or services (implementation of solutions). This Committee brings together Olivier Estève (Deputy CEO), the managers of Development, Asset Management, DSI, Wellio, Innovation and Sustainable Development as well as Laurie Goudallier, Chief Transformation Officer.

In addition this organisation, 2020 saw the creation of a Stakeholders Committee, chaired by Bertrand de Feydeau, and the Covivio Foundation, whose Board of Directors has eight members, including five internal members: Alix d'Ocagne (Chairwoman - independent Director), Géraldine Lemoine (Vice-Chairwoman, Chief Communication Officer), Yves Marque (Chief Operating Officer), Tugdual Millet (CEO Hotels in Europe), Giovanna Ruda (Chief Corporate Officer Italy), and three qualified external persons: Nathalie Blum (Chief Executive Officer of Don en Confiance), Bruno Derville (Senior Advisor) and Anne Lhuillier (independent consultant in sponsorship and philanthropy). In France, Germany and Italy, Local Committees guarantee a strong local presence, good responsiveness and long-term leadership. Each is composed of four employees from different Covivio business lines and has a wide variety of profiles: expertise, seniority, diversity, length of service, etc.

Organisation of sustainable development at Covivio, from strategy development to deployment

3.2.5.2 A calibrated and reliable performance

The tables presented in Chapter 3.7 provide an overview of the indicators used by Covivio to measure its environmental and social performance, particularly with respect to the targets that have been set. These indicators were chosen based on international standards: GRI Standards and the CRESD ⁽¹⁾ sector supplement, EPRA Best Practices Recommendations on Sustainability reporting (EPRA sBPR), and annual studies such as CDP and GRESB. The reporting scope for each business activity is detailed in Chapter 3.7. Covivio's CSR reporting is audited by an independent external third party (EY) in order to ensure the alignment of Covivio's reporting with regulations (Decree of 9 August 2017), EPRA recommendations (sBPR), as well as the GRI Standards and SASB. The Statutory Auditors also issue an opinion on the alignment of green emissions with the Sustainable Bond Framework of 2022 for offices and that of 2023 for hotels (3.8).

⁽¹⁾ CRESD: Construction

3.2.5.3 A CSR strategy recognised by the non-financial rating agencies

For many years, Covivio's sustainable development policy has been recognised internationally by non-financial rating agencies. The gradual greening of Covivio's debt (3.3.4) provides another example of the value of this policy and its results.

Covivio ranks well in the DJSI World and Europe, Ethibel Sustainability Index, FTSE4Good, Gaïa de Ethifinance, MSCI, STOXX Europe Sustainability and Global ESG Impact, and the Vigeo-Eiris 20 France, 120 Europe, 120 Eurozone and 120 World indices.

In addition, Covivio regularly receives trophies and awards in the various CSR compartments, such as the Grand Prix Compliance in 2020 at the AGEFI Corporate Governance Grand Prix, several awards to recognise the restructuring of the Silex 2 tower in Lyon (Living Environment Trophy of the FimbACTE 2021 Festival, Grand Prix SIMI 2021 in the category "Office towers" 2021, etc.), the construction of the So Pop building in Saint-Ouen (93) (Grand Prix SIMI 2022 "New office building + 10,000 m ² "), the energy performance of its buildings (CB 21 Tower winner in 2022 in the "Building of the La Défense Paris Cube league" category of the CUBE 2020 trophy) or the recognition of the actions carried out by its Foundation at SIMI 2023 (SIMI 2023 "Philanthropy and Solidarity in the city" award, "Societal commitment" category). The Stream Building received The Plan Award in the Mixed-use category, competing against 33 international projects, and the prize awarded by the Urban Land Institute (ULI) for best practices and the most remarkable projects in the area of urban development.

Covivio's ratings increase in 2023 with most ESG agencies. These recognise the relevance and performance of certain key areas of its strategy. This is particularly the case for its climate policy and its environmental certification programme for assets, recognised by agencies such as CDP and GRESB. In a spirit of transparency and dialogue, Covivio also responds to direct requests from its partners and investors wishing to complete their analysis on ESG issues.

Change in non-financial ratings 2022-2023

	2022		2023
CDP	B	↑	A
Participant since 2012
ISS-ESG	B-	→	B-
Prime rating since 2015
GRESB	88/100	↑	90/100
Green Star since 2013	(5-stars)		(5-stars)
CSA S&P (Former DJSI)	69/100	↑	70/100
World index since 2013, World index since 2016	(Percentile 96)		(Percentile 98)
Gaïa RATING	79/100	↑	82/100
Included in the index since 2013
Ecovadis	81/100	↓	70/100
Gold since the first participation in 2018			(change of category)
MSCI	AAA	→	AAA
Sustainanalytics ESG Risk Rating	7,9	↑	5,9
(scale reversed from 0 to 100, where 0 qualifies as zero risk)	Sector rank: 27/1,031 World: 98/15,605		Sector rank: 6/1,048 World: 24/15,922
Moody's Analytics (Former VE)		↓	68/100
New methodology in 2023			Sector Leader

3.2.6 An ambitious European CSR action plan

The CSR Europe 2020/2025/2030 action plan for Covivio's various activities is presented below. It is based on the major risks revealed by the CSR risk mapping conducted in accordance with the SNFP framework. The actions performed for risks deemed a lower priority but still important are also traced.

This action plan details the main multi-year objectives and their progress by activity. The various objectives are reported internally and are monitored at all levels of Governance of the Group.

This action plan is based on different time-frames depending on the various issues considered:

―	Short-term: 0 to 3 years (or permanent);
―	Medium-term: 3 to 5 years;
―	Long-term: 5 to 10 years.

In addition, given the scope of certain subjects, Covivio may consider longer time-frames (> 10 years) in its analyses, as is done on the climate in which a 2050 scenario may be relevant.

RISK FAMILY	RISK	COMMITMENT	OBJECTIVES		SCOPE	DELIVERY DATE
SUSTAINABLE BUILDING	AREA 1 - REDUCE PROPERTIES' ENVIRONMENTAL FOOTPRINT, MAINTAINING THEIR ATTRACTIVENESS AND RETAINING THEIR VALUE
Obsolescence of stock, energy and carbon transitions, and resilient city	Asset obsolescence/Green value/Products anticipating societal changes	Obtain certification for the portfolio 8 Decent work and economic growth 9 Industry, Innovation and Infrastructure 11 Sustainable cities and communities 13 Climate action	Hold environmentally certified assets at:	100% R	Core European assets	2025
			Develop and restore environmentally certified assets at:	100%	Commercial portfolio	2025
				N/A	German Residential	2025
		Guarantee customer well-being 3 Good health and well-being 12 Responsible consumption and production	Develop assets labelled for well-being	100% R	Offices	2020/2030
	Managing operating expenses (energy, waste, certifications)	Improve energy performance and reduce CO ₂ emissions 7 Affordable and clean energy 13 Climate action	Reduce energy consumption in the portfolio as a whole	-25%	Tertiary Group	2019/2030
			Objective: 270 kWhpe/m ² /year	-50%	France Offices	2010/2030
			Objective: 137 kWhpe/m ² /year	-30%	Italy Offices (Operational control)	2015/2030
			Objective: 194 kWhpe/m ² /year	-15% (new objective)	German Offices (Operational control)	2022/2023
			Objective: 308 kWhpe/m ² /year	2010/2030 -50% (hotels)	Hotels in Europe	2010/2030
			Reduce CO ₂ emissions:	2010/2030 -40% R	Group: construction, operation, renovation	2030
			Objective: 7.9 kgCO ₂ e/m ² /year (operational carbon trajectory)	-70%	France Offices	2010/2030
			Objective: 13.4 kgCO ₂ e/m ² /year (operational carbon trajectory)	-68%	Italy Offices (Operational control)	2015/2030
			Objective: 15.4 kgCO ₂ e/m ² /year (operational carbon trajectory)	-66%	Germany Offices	2020/2030
			Objective: 29 kgCO ₂ e/m ² /year (representative reporting panel)	-30%	German Residential ^*	2017/2025
			Objective: 14.6 kgCO ₂ e/m ² /year (Operation carbon trajectory)	-60%	Hotels in Europe	2010/2030

RISK FAMILY	2023 COMPLETIONS	PROGRESS	REFERENCE
SUSTAINABLE BUILDING
Obsolescence of stock, energy and carbon transitions, and resilient city	• Portfolio total: 95.3% of buildings certified at the end of 2023 (compared to 93.2% in 2022).	♦♦	3.3.1.3.1
	• France Offices: 100% of buildings certified at the end of 2023 (compared to 100% at the end of 2022).	♦♦♦
	• Italy Offices: 100% of buildings certified at the end of 2023 (compared to 98% in 2022).	♦♦♦
	• Germany Offices: 61.9% of buildings certified at the end of 2023 (compared to 46.1% in 2022).	♦
	• German Residential: 100% of buildings certified HQE Exploitation by the end of 2019 (target 100% achieved).	♦♦♦
	• Hotels: 91.2% of buildings certified at the end of 2023 (compared to 87.5% in 2022).	♦♦
	• 100% of the buildings delivered or renovated in 2023 had HQE or BREEAM or LEED certification higher than Excellent/Gold.	♦♦♦	3.3.1.3.2
	• Implementation of a pilot project for a project to develop 106 housing units in Berlin (HQE certification obtained in 2022) and certification commitment for all future projects (excluding development).	♦♦	3.3.1.3.1
	• Covivio is testing the WELL, Osmoz and Fitwel labels on several projects, 344,000 m ² were concerned at the end of 2023, and 60% of the development pipeline.	♦♦	3.3.2.2
	• 255 kWhpe/m ² in 2023 (-21% compared to 2019)	♦♦
	• Consumption data related to the German Residential portfolio now covers the entire portfolio and shows a level of 148 kWhfe/m ² in 2022. A target will be set after the second year of reporting
	• 222 kWhpe/m ² in 2023 (-56% compared to 2010)	♦♦
	• 114 kWhpe/m ² in 2023 (-42% compared to 2015)	♦♦
	• 122 kWhpe/m ² in 2023 (-14% compared to 2022)	♦♦
	• 277 kWhpe/m ² in 2023 (-55% compared to 2010)	♦♦
	• Carbon trajectory (Scope 1, 2, 3) updated in 2021	♦♦	3.3.2.3
	• Carbon intensity of operations: 24.8 kgCO ₂ e/m ²
	• Group carbon intensity including emissions related to existing buildings: 56.6 kgCO ₂ e/m ² , i.e. -26%
	• 9.9 kgCO ₂ e/m ² in 2023 (-60% compared to 2010)	♦♦
	• 5.5 kgCO ₂ e/m ² in 2023 (-87% compared with 2015) 28.5 kgCO ₂ e/m ² /year on total scope	♦♦
	• 5.9 kgeqCO ₂ /m2 on Operational scope	♦
	• 18.7 kgCO ₂ e/m ² on total scope
	• 29.7 kgCO ₂ e/m ² in 2023 (-13% compared to 2017)	♦♦
	• 24.9 kgCO ₂ e/m ² in 2023 (-49% compared to 2010)	♦♦

RISK FAMILY	RISK	COMMITMENT	OBJECTIVES		SCOPE	DELIVERY DATE
Obsolescence of stock, energy and carbon transitions, and resilient city	Managing operating expenses (energy, waste, certifications)	Lead the eco-transition 9 Industry, Innovation and Infrastructure 11 Sustainable cities and communities	Keep water consumption below:	≤0.5m ³ /m ² /year	France Offices	2025
				≤1m ³ /m ² /year	Italy Offices (Operational control)	2025
				≤0.5m ³ / m ² / year	Germany Offices	2025
				≤1.5m ³ /m ² /year	German Residential ^*	2025
				≤2m ³ /m ² /year	Hotels in Europe	2025
			Reduce the production of waste from directly managed assets	2019/2030 -15%	Group	2030
			Cut waste and promote recycling across 100% of the portfolio and 100% of development and refurbishment projects	100%	Group	Permanent
Health, safety, well-being	Security/Environmental safety/Regulatory compliance	Control health and safety related risks 3 Good health and well-being 9 Industry, Innovation and Infrastructure 9 Industry, Innovation and Infrastructure 11 Sustainable cities and communities	Manage health and environmental risks	N/A	Group	Permanent
			Health and safety	N/A	Directly managed and corporate buildings	Permanent
			Hold assets accessible to people with reduced mobility at:	80%	France Offices	Permanent
					Italy Offices	Permanent

RISK FAMILY	2023 ACHIEVEMENTS	PROGRESS	REFERENCE
Obsolescence of stock, energy and carbon transitions, and resilient city	• 0.34 m ³ /m ² in 2023	♦♦♦	3.3.2.4
	• -18% compared to 2008
	• 0.72 m ³ /m ² in 2023	♦♦♦
	• -22% compared to 2015
	• 0.21 m ³ /m ² in 2023	♦♦♦
	• 1.12 m ³ /m ² in 2023	♦♦
	• -14% compared to 2016
	• 1.41 m ³ /m ² in 2023	♦♦♦
	• -39% compared to 2008
	• 85% of buildings under direct management benefit from waste reporting	♦♦	3.3.2.5
	• (4.4 kg/m ² /year in 2023, compared to 7.2 kg in 2020)
	• 100% of assets are fitted with selective waste collection systems	♦♦
Health, safety, well-being	• 100% of sites are monitored and checked	♦♦♦	3.3.3
	• Carrying out resilience audits to understand the various impacts of climate change on our portfolio
	• Air Quality Challenge in 2020 to identify and test innovative indoor air quality solutions; POC in 2021 for the Octopus Lab solution on three office buildings located in the Paris region. In 2022/2023, roll-out to seven new French sites	♦♦	3.3.3.3.3
	• Care Programme certified by Bureau Veritas guaranteeing compliance with a health protocol in buildings under direct management
	• Compliance within the framework of each restructuring operation	♦♦♦
	• 85% (in Group Share value) of offices accessible at the end of 2023
	(82% in 2022)
	• Bringing into compliance as part of each restructuring operation 100% (in Group Share value) of the offices directly managed by Covivio in Italy were accessible at the end of 2023	♦♦♦

^* Representative panel

R	Objective linked to Covivio's Purpose (see Appendices)

♦ Challenge

♦♦ Objective in progress

♦♦♦ Target met or exceeded

RISK FAMILY	RISK	COMMITMENT	OBJECTIVES	SCOPE	DELIVERY DATE	2023 ACHIEVEMENTS
SOCIETAL	AREA 2 - CONTRIBUTE TO THE DISSEMINATION OF ECO-FRIENDLY PRACTICES AND TAKE AN ACTIVE ROLE IN CITY LIFE IN PARTNERSHIP WITH STAKEHOLDERS
Sustainable and inclusive city	Responsible supply chain	Communication with suppliers and clients	Obtain signatures on Responsible Purchasing Charter our key suppliers	Group	2025	• Responsible purchasing policy launched in France in 2010/2011;
		8 Decent work and economic growth				• New system launched in 2022 based on the EcoVadis solution;
		12 Responsible consumption and production				• Completion of a European procurement risk map at the end of 2020.
			Innovate with our suppliers on Group values	France Offices	Permanent	• Participation in various working groups in conjunction with our suppliers: energy flexibility, carbon, circular economy, etc.
						• Completion of the Air Quality Challenge in partnership with EDF and Impulse Partner in 2020.
	Quality of relations with external stakeholders (customers, suppliers, etc.)		Optimise tenant satisfaction	Group	Permanent	• Launch of a new programme to measure the satisfaction of office tenants at the European level;
			R			• Covivio Immobilien again given the "Fairest Landlord" award by Focus Money magazine.
			Innovate with our clients	Group	Permanent	• Development of new service concepts;
			R			• Continued development of Wellio;
						• Covivio Immobilien smartphone app in Germany;
						• Launch of the MonBuilding application on multi-tenant office buildings.
	Integration within the sustainable city	Action for a sustainable city	Getting involved in regional revitalisation initiatives		Permanent	• Study on socio-economic impacts for all Group activities in Europe.
		9 Industry, Innovation and Infrastructure
		11 Sustainable cities and communities
			Co-construct a coherent and collaborative urban space with our stakeholders	Group		• Making our projects real parts of the city integrating different urban uses: co-working, connectivity, etc.: Symbiosis in Milan, Euratlantique in Bordeaux, Euromed in Marseille;
			R			• Stakeholders Committee - since 2021.
			Promote human rights and equal opportunities			• Adherence to the principles and values of the UN Global Compact: GC Advanced level since 2018;
			R			• Creation of the Covivio Corporate Foundation in 2020 bringing together all equal opportunities.
		Turning each site into a biodiversity driver	Participate in the integration of biodiversity in cities and conduct innovative initiatives on the subject	Group	Permanent	• First European mapping exercise of the Group's business impacts on biodiversity;
		15 Life on land	R			• Calculation of Global Biodiversity score;
						• More than 75% of the sites studied at more than 1 kilometre from areas of ecological interest;
						• In 2021: testing of the CBS calculation on the Majoria site and new operations tested in 2022 and 2023 (multiplication by 3.3 of the CBS on operations analysed before and after the works).
						• 155,000 m ² of offices have the BiodiverCity or EcoJardin label;
						• Since 2020, all new development projects have green spaces (terraces, patios, rooftops, urban agriculture).
		Own assets with good accessibility	100% of assets located within a 10-minutes walk from public transports	Group	2025	• 97.8% of the portfolio within a 5-minute walk of public transport, and 99.8% within a 10-minute walk of public transport;
		3 Good health and well-being				• In the office portfolio in Europe, 95.9% of assets have at least one means of transport by rail (metro or RER) within a radius of 1 km and 85.7% within a radius of 500 m.
		9 Industry, Innovation and Infrastructure

RISK FAMILY	PROGRESS	REFERENCE
SOCIETAL
Sustainable and inclusive city	♦♦	3.4.2
	♦♦♦	3.4.1.1
	♦♦	3.4.3.1
	♦♦	3.4.3.2
	♦♦♦	3.4.1.2.1
	♦♦	3.4.1
	♦♦♦	3.2.1.4
	♦♦♦	3.4.1.4
	♦♦♦	3.4.1.5.1

^* Representative panel

R	Objective linked to Covivio's Purpose (see Appendices)

♦ Challenge

♦♦ Objective in progress

♦♦♦ Target met or exceeded

RISK FAMILY	RISK	COMMITMENT	OBJECTIVES	SCOPE	DELIVERY DATE	2023 ACHIEVEMENTS
SOCIAL	AREA 3 - ENRICH, THROUGH INNOVATIVE POLICIES, THE SKILLS OF EMPLOYEES, THEIR MOBILITY, THEIR DIVERSITY AND THEIR CAPACITY TO ADAPT, IN ORDER TO RESPOND TO DIFFERENT CHANGES
Quality of human capital	Skills/Attractiveness/ Diversity	Develop human capital	Attract, develop and retain talent	Group	Permanent	• 1,036 employees (50% women and 50% men) of which 93.4% on permanent contracts;
		3 Good health and well-being				• Sharing know-how and knowledge at Group level and sharp increase in cross-functional projects between the three European entities.
		5 Gender equality
		8 Decent work and economic growth
			Promote diversity and equality			• Ex-aequo programme: raising employee awareness about gender equality; mentoring programme benefiting 26 French, Italian and German female employees.
			Improve the quality of life at work and achieve work-life balance			• Quality of Life at Work Agreement in France, Senior Agreement in 2020;
						• Implementation of teleworking from 2018 - Widespread since the start of the Covid crisis.
			Measure the well-being of teams every two years			• Employee satisfaction survey conducted biannually since 2019 at Group level.
			R
		Be exemplary in the application of our CSR values	Cut CO ₂ emissions generated by our employees	Group	Permanent	• Launch of the Covivio 4 Climate project to raise all employees' awareness of climate issues;
		11 Sustainable cities and communities				• Corporate carbon footprint measured at the European level including not only travel (business travel and commuting) but also areas such as IT, catering and procurement in general;
						• Deployment throughout 2023.
			Make every employee a player in sustainable development	Group	Permanent	• Organisation of green meetings, sustainable development week with a European challenge.
			Involve employees in the Group's commitments	Group	Permanent	• Involve employees in the Group's involvement in different actions: Palladio, Article.1, Passerelle, etc.
			R			• SoCovivio Weeks in 2022 and 2023 with a number of events held for charitable associations.
GOVERNANCE	AREA 4 - ENSURE AN ETHICAL AND TRANSPARENT FRAMEWORK FOR EXEMPLARY PRACTICES AT ALL LEVELS OF THE COMPANY
Effective and ethically-aware governance	Fraud/Corruption/Ethics	Conduct effective governance	Optimise the performance of the Board of Directors	Covivio	Permanent	• Assessment of the members of the Board of Directors annually and, formally, every three years;
		5 Gender equality				• 10 Directors have CSR skills/expertise;
		16 Peace, justice and strong institutions
			Remain the leader in terms of the transparency of our business activities reporting			• Observation of the best international benchmarks: EPRA, Afep-Medef, GRI, SASB;
						• Strong recognition of non-financial rating organisations (Ratings still rising in 2020).
			40% women on the Board of Directors			• 43% female members on the Board of Directors since 2017.
		Promote ethical values	45% of Board of Directors independent members	Covivio	Permanent	• 50% independent members on the Board of Directors since 2017.
		16 Peace, justice and strong institutions
			Disseminate and share ethics/anti-corruption best practices with all employees	Group	Permanent	• In 2019: update and distribution of the Ethical Charter to all Group employees;
						• 100% of employees trained in these principles.
	Data protection/Smart building	Improve the connectivity of buildings	Develop innovation and undertake forward-looking studies with a view to value creation	Group	Permanent	• Studies carried out in partnership with the non-profit organisations SBA, Orée, Alliance HQE-GBC, IFPEB, etc. on various topics: BIM, BOS, biodiversity, AVC, energy flexibility, carbon.
		9 Industry, Innovation and Infrastructure
			Provide a high level of connectivity in our buildings	Group	Permanent	• 41% of the office portfolio certified for its connectivity and 89% of the office pipeline;
						• Wellio Dante, first WiredScore labelled building in Italy.
			Introduction of systems for the remote monitoring of energy consumption (smart metering)	Group	Permanent	• Implementation of the PowerBat Supervision system on core commercial buildings under direct management.

RISK FAMILY	PROGRESS	REFERENCE
SOCIAL
Quality of human capital	♦♦♦	3.5.1.1
	♦♦♦	3.5.1.5
	♦♦♦	3.5.2.1
	♦♦	3.5.1.4
	♦♦	3.5.2.2.1
	♦♦	3.5.2.2.3
	♦♦	3.4.1.3.2
GOVERNANCE
Effective and ethically-aware governance	♦♦♦	3.6.1.2
	♦♦♦	3.6.1.1
	♦♦♦	3.6.1.2.1
	♦♦♦	3.6.1.2.1
	♦♦♦	3.6.2.1
	♦♦	3.3.1
	♦♦	3.6.3.1
	♦♦	3.6.3.1

^* Representative panel

R	Objective linked to Covivio's Purpose (see Appendices)

♦ Challenge

♦♦ Objective in progress

♦♦♦ Target met or exceeded

3.3 Sustainable building: an ambitious environmental policy

Buildings may be confronted with the risk of obsolescence, with a resulting loss of value, if they do not meet the challenges related to the ecological and digital transformation or do not sufficiently take into account societal changes or the need for flexibility and services (3.3.1). In addition to these challenges which affect the appeal and liquidity of buildings, CSR risk mapping carried out at Covivio underscored the importance of properly managing operating expenses (energy, waste, certifications) both in terms of property operating costs (such as reducing the consumption of energy, water) and reducing the asset's environmental footprint (3.3.2). The third risk covered by this section concerns the environmental safety dimension, and in particular regulatory compliance with respect to asbestos, legionella, soil pollution, etc. (3.3.3).

Key performance indicators for sustainable buildings (at 31 December 2023)

"ASSET OBSOLESCENCE/GREEN VALUE/PRODUCTS ANTICIPATING SOCIETAL CHANGES" RISK

100%

OF CORE OFFICES IN FRANCE ARE CERTIFIED

100%

OF CORE OFFICES IN ITALY ARE CERTIFIED

100%

OF GERMAN RESIDENTIAL ASSETS ARE CERTIFIED FOR OPERATIONS

91.2%

OF HOTELS IN EUROPE ARE CERTIFIED

61.9%

OF OFFICES IN GERMANY ARE CERTIFIED

"MANAGING OPERATING EXPENSES" RISK

255kWhpe/m2

AVERAGE INTENSITY -TERTIARY EUROPE

24.8 kgCO ₂ e/m ²

AVERAGE IN-USE GHG INTENSITY - GROUP

100%

OF ASSETS BENEFIT FROM SELECTIVE WASTE COLLECTION

"SECURITY/ENVIRONMENTAL SAFETY/REGULATORY COMPLIANCE" RISK

100 %

OF TERTIARY ASSETS BENEFIT FROM HEALTH AND SAFEY MONTIORING AND CONTROLS

<2 %

OF PROPERTIES AFFECTED BY 1 METRE RISE IN SEA LEVEL

Through the implementation of its committed projects pipeline (amounting to €1.7 billion at the end of 2023), Covivio ensures that its portfolio is evolving on a trajectory compatible with the 2015 Paris Climate Agreement. For this, Covivio has set itself ambitious objectives and action plans consistent with its activities in Europe, which consider the risks related to climate change. Climate risk was the subject of a dedicated report in 2019, presented below in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and detailed in the Group climate report. In 2020 and 2021 various studies accompanied and added to this reflection, in particular to measure the impacts on the portfolio, in quantitative and financial terms, and to anticipate the criteria being defined in the framework of the European taxonomy (3.3.4.1). The climate reports published by Covivio in mid-2022 and then in mid-2023 follow the TCFD recommendations as closely as possible.

Alignment with the recommendations of the TCFD ¹

Governance

Covivio's governance and organisation are structured to strategically address climate issues. The various bodies presented below have clearly defined roles in order to ensure the implementation of Covivio's objectives in this area.

―	The Board of Directors controls the risks and opportunities related to climate change by monitoring the CSR performance of the company, and the strategic policies given to the Group. The Chief Executive Officer himself deals with the issues of sustainable development and climate change on the Board, supported in particular by Directors experienced in CSR issues. In 2021, a work session of the Board's strategic seminar was entirely devoted to climate issues and the update of the Group's carbon trajectory. Subsequently, an additional step was taken to formalise the Board's commitment to sustainable development issues, with the creation in July 2021 of a CSR Committee, whose purpose is to assist the Board in the conduct of its Meetings in the area of CSR in order to enable it to go even further in the analysis of environmental, social and societal issues. The climate naturally occupies an important place in the subjects dealt with by the CSR Committee.
―	The Executive Committee is in charge of the deployment of the Group's strategy, to implement the Group's climate objectives in particular. The members of the Executive Committee have objectives related to this action plan, in particular in their variable remuneration. Following the recommendations of the CSR Committee, the CSR objectives included in the remuneration of the Chief Executive Officer and the Deputy CEO were specified this year, respectively 12% and 15%. The certification rate of the portfolio and the objectives related to the carbon trajectory account for up to 15% of the long-term incentive scheme for corporate officers (Chapter 5).
―	The Sustainable Development Department proposes and coordinates, with the support of General Management and the CSR Committee, initiatives concerning the fight against climate change in the Group's activities. The Sustainable Development Department works in particular, in a continuous liaison with the Executive Committee, on the implementation of the approved plans.

Risk management

In 2021, Covivio updated its risk mapping at the Group level, including all its subsidiaries and activities. The results were presented to, and shared with the Covivio Audit Committee in September 2021. This made it possible to take stock of the improvement in the level of control of risks for which specific action plans had been defined and implemented, and to share the levels of control as well as the action plans put in place to deal with the company's major risks. The Sustainable Development Department, in coordination with the Risks, Compliance, Audit and Internal Control Department, carried out a CSR risk mapping in 2018, validated by the Management Committee, to identify the inherent and residual risks affecting Covivio's activities, then in 2020/2021, a risk mapping attached to purchases (3.4.2.3). These maps are regularly updated.

Of the risks identified by Covivio, the "Asset obsolescence/Green value/Products anticipating societal changes", "Managing operating expenses" and "Safety/Environmental safety/ Regulatory compliance" risks are related to climate risks. The plans to manage these risks are specified in their respective sections.

⁽¹⁾ In March 2021, Covivio became an official supporter of the TCFDs (https://www.fsb-tcfd.org/supporters/).

Strategy

Climate-related risks

	Risks	Description of risks	Potential financial impact
	Extreme (medium-term)
Physical Risks	Climatic phenomena:	Material destruction, including the destruction of assets	Construction:
	• storms	Disruption of transport	• loss of assets
	• hail	Difficulties in the supply of water and power	• costs of repair or replacement
	• fires		• construction delays
	• flood		Operation:
	• drought		• loss of assets
			• loss of value
			• business interruption
	Temperature changes:	Loss of thermal comfort	Construction:
	• heat wave	Risk to the health of tenants	• dimensioning heating/ cooling installations
	• cold wave		• additional costs
			Operation:
			• increase in operational costs
			• drop in occupancy rates
			• drop in rents
	Chronic (long-term)
	Increase in temperatures	Drop in air quality Proliferation of insects Destruction of green spaces	Operation:
			• operating costs

	Rise in water levels	Submersion of assets	Operation:
			• loss of assets
			• business interruption
Transition Risks	Political and legal (medium-term)
	Fossil fuel/carbon taxation	Implementation of carbon taxation on construction, on carbon-emitting buildings and fossil fuels	Construction:
			• increase in costs
			Operation:
			• increase in costs
	Regulatory developments	Risk of non-compliance	Operation:
			• legal risks leading to penalties and excess costs.
	Development of the market (long-term)
	Obsolescence	Loss of attractiveness of the portfolio	Operation:
			• increase in operating costs
			• drop in liquidity
	Economic slowdown	Drop in purchasing power	Operation:
			• Inability to pay rent
	Demand for 'green' buildings	Reputational risk	Operation:
			• loss of attractiveness of assets

	Covivio's strategy	Indicators monitored

Physical Risks	Gradual adaptation of the portfolio	Reporting on environmental risks
	Targeted resilience studies	Share of certified buildings (HQE, BREEAM, LEED, etc.)
	Choice of location	Energy consumption
	Switching assets	CO ₂ emissions




	Analysis of the dimensioning of equipment/ installations
	Regulatory monitoring and anticipation






	Biodiversity Charters	Energy consumption
	BiodiverCity labe	CO ₂ emissions
	l Green spaces objective
	Switching assets	Study on the submersion of the portfolio/statistics
	Choice of location
	Targeted resilience studies
Transition Risks
	Low carbon construction policy	Percentage of certified buildings
	Calculation of the CO ₂ impact of the choice of materials


	Calculation of the CO ₂ impact of energy efficiency actions	Amount of penalties


	Refurbishment policy	Percentage of certified buildings


	Diversification policy	Revenue per activity/ per country, etc.

	Certification of buildings	Percentage of certified buildings

Assessing the potential impact of climate change risks

Covivio carries out an analysis of the impacts of climate change with the MSCI Real Estate Climate Value-at-Risk® solution. This study has been updated every year since 2020.

It measures the potential financial impact of physical and transition risks. To model this impact, it is necessary to refer to scenarios modelling possible climate and temperature changes at the global level. MSCI relies on a series of recognised scientific models (REMIND, CRREM, IPCC). These models incorporate different assumptions about demographic, economic, geopolitical and future carbon price developments.

The 2023 analysis covers Covivio's entire European portfolio: office, hotel and residential assets. The scope includes 5,348 assets with a value of more than €16.3 billion Group Share at the end of 2022.

Data on Covivio's assets (location, surface area, type, energy consumption and CO ₂ emissions) are included in the analysis. This makes it possible to calculate the impacts at the consolidated level and for each asset.

Impact of physical risks

The model analyses the impact of damage linked to the physical risks: coastal and river flooding, extreme cold and heat, violent winds from tropical storms and cyclones, forest fires. Potential damages are analysed until 2100 and transcribed as a percentage of the value of Covivio's portfolio: this is the Climate Value-at-Risk (Climate VaR). Another timeframe may also be chosen to assess the risk in the nearer term (such as 2050).

According to a 3°C I REMIND I Current policies scenario, Covivio's Climate Value-at-Risk is -0.41% for the impact of all physical risks. The main physical climate risks for the portfolio are coastal flooding and extreme heat. Only a few assets are potentially significantly impacted (four assets have a high level of Climate VaR due to the risks of coastal flooding in the scenario used).

This level of physical risk is lower than that of a comparable universe of assets collected by MSCI (more than 26,000 assets located in Europe, with a value of $674 Mn), which has a Climate VaR of -4.9%, including -4.58% for the risk of coastal flooding.

For Covivio's portfolio, the magnitude of the physical risk varies little according to the different temperature increase scenarios: from -0.19% to -0.58%, from a 1.5°C I REMIND I Orderly scenario where the warming would reach 1.5°C thanks to global decarbonisation efforts, to a 5°C I IPPC I SSP 5-8.5 scenario, a pessimistic scenario used by the IPCC.

Impact of transition risks

On the basis of the actual data provided, the cost of the investments required to reduce the portfolio's carbon emissions is also modelled to align with a 1.5°C scenario in 2050 (valued with an assumption of the carbon price that increases until 2050).

Based on the 1.5°C I REMIND I SSP2 I Orderly scenario, the Climate VaR associated with the transition risk represents -3.48% of the value of the portfolio's assets. This result is an improvement compared to the previous year's analysis where the Climate VaR was -4.17% for the same scenario, an increase partly due to the increase in coverage in actual data by Covivio, and also due to investments made.

If we look at another scenario such as the 1.5°C I CRREM I CO ₂ , the Climate VaR for the transition risk represents -1.95% of the value of Covivio's portfolio assets. It is lower than in the previous scenario, mainly due to a more moderate carbon price assumption in this scenario.

By aggregating the data for the two types of risks, Covivio's total Climate VaR is -3.89%. For the comparable universe, it is -10.3%. The Covivio portfolio thus appears to be better positioned than the comparable universe.

Change in the Climate VaR of the physical risks of Covivio's portfolio under different climate scenarios and comparison of the Climate VaR results between Covivio and a comparable universe of assets in Europe

^* Source: MSCI Real Assets MSCI Climate Value-at-Risk model version 30 August 2023.

Physical risk: scenario 3°C I REMIND I Current policies.

Transition risk: 1.5°C scenario I REMIND I SSP2 Orderly.

MSCI comparable universe: 26,000 assets located in Europe (value: $674 Mn), proxies for the calculation of the transition risk.

Focus on the CRREM scenarios

As part of its work with MSCI on climate risk, Covivio selected the 1.5°C CRREM trajectory as its reference scenario. The resulting climate risk value remains fairly limited up to 2100: -1.95% for transition risks.

For each portfolio, Covivio compared the CRREM scenarios to the historical GHG emissions data already published each year and to the data calculated by 2030 as part of its carbon trajectory. This made it possible to validate the consistency of the GHG emissions reduction targets for the commercial portfolios, which are below the "tipping point" levels ⁽¹⁾ identified by CRREM. The scenarios used are those published by CRREM on 11 January 2023 and are at a more ambitious level than the previous ones.

The elements proposed by CRREM concerning residential are still too recent to have the same analysis at this stage.

Reconciliation of CRREM scenarios with the Covivio carbon trajectory on its tertiary portfolios (V2 CRREM of 11 January 2023)

Indicators and objectives

Covivio's various CSR objectives are presented in the CSR action plan (3.2.6). The state of progress of these objectives is detailed in the sections concerned, notably the main indicators related to Covivio's strategy for the fight against climate change:

―	energy intensity of the tertiary portfolio (3.3.2.2): 255 kWhpe/m ² at 31 December 2023 ⁽²⁾ , i.e. -21% compared to 2019 -Objective -25% by 2030 (vs 2019);
―	greenhouse gas emissions generated by the activity (3.3.2.2): 56.6 kgCO ₂ /m ² at 31 December 2023, i.e. -26% compared to 2010 - Objective -40% by 2030 (vs 2010);
―	certification of the European portfolio (3.3.1.3): 95.3% of certified buildings as of 31 December 2023 - Objective 100% by 2025.

Fundamental for the activity of the Group, the work carried out to prepare the 2030 carbon trajectory, updated in 2021, and the objectives arising from it are presented below.

⁽¹⁾ Tipping point: year in which the asset emits more CO ₂ than the level required to comply with a 1.5°C trajectory.

⁽²⁾ On a like-for-like methodology integrating the data from the residential panel as previously, the intensity would be 248 kWhpe/m ² /year

Carbon footprint of the activity

Capitalising on feedback regarding reducing energy consumption and greenhouse gas emissions, Covivio decided in 2021 to accelerate its transition by raising the level of its ambitions across its entire portfolio of assets in the commercial portfolio under direct management, to align with a 1.5°C trajectory (based on the IPCC scenarios) and achieve a "net zero emissions" contribution by 2030 on Scopes 1 and 2.

Less than three years after the publication of its first trajectory for reducing its carbon emissions, whose compatibility with the 2°C scenario of the Paris Agreement had been recognised in the summer of 2018 by the Science Based Target initiative (SBTi), Covivio has thus raised the level of its ambitions and is once again positioning itself as a major player in the low-carbon transition. Covering all of Covivio's activities in Europe, this trajectory, updated at the end of 2021, takes into account the Group's experience in low-carbon construction and additional experiments on materials, the circular economy and biodiversity. These objectives were approved by the SBT initiative in the first weeks of 2022, validating their alignment with a 1.5°C trajectory (Scopes 1 and 2).

Two prospective scenarios for 2030 were constructed, in order to take into account the changes likely to impact Covivio's carbon performance, whether they be internal or external. This was done by modelling in seven large areas: roadways, pipes, conduits and cabling; infrastructure; superstructure; building shell; finishing work; equipment; and local energy production. An innovative approach to modelling carbon intensity has been adopted in order to monitor the Group's carbon performance by comparing it to a composite square meter, and this by integrating all activities (offices, residential, hotels) in Europe, over the entire life cycle of assets: materials, construction, restructuring and operation. These models are based on various scientific scenarios taking into account the decarbonisation rates of the energy mixes in the countries where Covivio operates, as well as the various sectors that impact the business. These scientific models were consolidated by CSTB, which also used its experience in the construction sector to best adapt them to the Group's specificities. The parameters have been defined by taking into account Covivio's current portfolio in Europe as well as projections of this portfolio by 2030. The 2021 update made it possible to integrate the Group's new orientations, in particular following the acquisition of offices in Germany in 2020.

By being involved in initiatives such as the HQE-GBC Alliance, the BBCA association, SEKOYA and the Low-Carbon Specifiers Hub (3.2.1.4), Covivio has strong expertise on the subject, enabling it to consolidate its 10 years vision. The internal carbon tools, developed with the CSTB, will help to inform and guide decisions from the design to the operation of buildings. For example, the "LCA Express", covering construction and renovation makes it possible to estimate the carbon performance upstream of a project and to determine the sensitivities to the impacts of the choice of materials or the shape of the building.

The update of Covivio's carbon trajectory has thus led to the definition of the following objectives:

―	reduce greenhouse gas emissions by 40% between 2010 and 2030 (Scopes 1, 2 and 3) in terms of carbon intensity;
―	make a "Net Zero Carbon" contribution from 2030 and align its directly managed activities on a 1.5°C trajectory, i.e. a 63% reduction in absolute emissions between 2015 and 2030 on Scopes 1 and 2 (operation of common areas of multi-tenant buildings and head offices);
―	aim to align with the "Well-Below 2°C" scenario (between 1.5 and 2°C) on Scope 3 (construction, renovation, operation of private spaces in multi-tenant buildings, single-tenant offices, residential and hotels).

Achieving the carbon trajectory for each activity involves the implementation of various actions, in particular the completion of works (Capex) on the portfolio. In 2023, this work was identified and quantified by portfolio (3.3.2.1).

2030 trajectory of average carbon weight per m (construction + restructuring + operation)

(Summary of Covivio's various activities in Europe, in carbon intensity kgCO e/m ² /year)

Breakdown of the Group's carbon footprint in 2023 and levers for implementing the carbon strategy

3.3.1 A sustainable vision of the building over its entire life cycle

Combating the obsolescence of Covivio's portfolio involves a high level of ambition, as much in the design as in the management of buildings. To this end, Covivio is developing buildings with excellent accessibility and meeting high standards, particularly in terms of connectivity, comfort and well-being. The buildings are designed to offer maximum flexibility to accommodate different types of users and organisations and assist tenants with their changing needs over the long term. Open to the city, their gardens and terraces have been created to act as real drivers of biodiversity and contribute to the occupants' well-being. Eco-designed and then eco-managed, the buildings developed or renovated by Covivio provide solutions tailored to each user, while ensuring greater integration of the building into its environment.

Identified as a major inherent risk as part of the CSR risk mapping exercise (3.2.4.2), the "Asset obsolescence/Green value/Products anticipating societal changes" topic covers a range of challenges that are central to the company's concerns and portfolio strategy. If these challenges are not met, the company could be exposed to myriad adverse impacts, including owning certain assets with little potential for value creation; loss of the portfolio's attractiveness or the need for additional work due to a lack of maintenance and upkeep; and competitive disadvantages due to a lack of certification or poor locations. To respond to the potential risks and better anticipate their impact, Covivio tries to anticipate regulatory changes and commits to the highest international standards in terms of construction and service, with strong long-term partnerships that rely on a good understanding of each and every client and their needs (3.2.3.1). By managing the entire value-creation chain, Covivio ensures that the quality of its buildings meets both client and market expectations. Lastly, Covivio optimises the value of its assets and the company's reputation whilst participating in the transition towards a circular, low-carbon economy and factoring in resilience issues (3.3.3.1) to better adapt its portfolio to climate change.

3.3.1.1 Co-inventing new commercial and residential real estate

In several programmes developed by Covivio, emphasis has been placed on mixed functions: offices, co-working areas, residential, ground-floor shops, hotels and co-living. This new market trend is reflected in Covivio's numerous operations: Stream Building in Paris, Symbiosis in Milan and Alexanderplatz in Berlin. These programmes are designed for the purpose of cooperation with stakeholders and contribute to strengthening the attractiveness and influence of the districts in which they are built. Proximity and personalised customer relations are at the heart of Covivio's culture. To continually meet client expectations and develop the Group's offering, services and processes, Covivio regularly conducts satisfaction surveys on various topics. Action plans are rolled out following these surveys, ensuring that customers are listened to and that their needs are rapidly taken into account. The service offering emphasises a simple and fluid experience as well as flexible and personalised spaces for an ever-changing experience throughout the day.

Towards greater flexibility and service for customised projects

By capitalising on the experience of its subsidiary Wellio, a specialist in flexible pro-working spaces launched in 2017, and on its skills acquired in the hotel industry, Covivio continues to develop its solutions to better meet the needs of its customers.

In 2017, Covivio launched a co-living offer in Germany. Between a hotel and traditional shared flat, the co-living apartments offer a "home-from-home" experience, with a well-equipped kitchen, modern decoration, quality furniture, Wi-Fi, etc. Covivio manages around 250 rooms in Berlin under the "Covivio to share" brand.

The study commissioned by Covivio from Opinion Way in 2020, "Flexibilty First!" ⁽¹⁾ , had highlighted the fact that employees and managers have common expectations and requirements as regards the evolution of the office towards more flexibility, and also concerning the working atmosphere, the provision of varied spaces adapted to changes in working methods. Convinced that flexibility and services will in the future be decisive in the collective performance of organisations, Covivio is combining its leases and service contracts in order to offer mixed offerings. The Group is also adapting its processes in order to involve users as early as possible in the design of projects developed through design thinking workshops or work sessions with innovative partners, particularly in the field of services.

In 2023, Covivio published its vision of the "Operated office" ⁽²⁾ aiming to offer its clients an optimised experience in its buildings, consisting of:

―	unique offices and services that inspire desire and are vectors of transformation, pride, individual and collective efficiency and anticipate uses;
―	hybrid and flexible offers according to needs, while maintaining a single point of contact;
―	an A to Z consulting contribution, the "All in One" approach, offering consulting/programming/design/management of service offices, all the way to the design and management of the smart building;
―	a five-star customer relationship focused on the quality of services and management, reliability, listening, and responsiveness by drawing on customer feedback (3.4.3.1);
―	a pragmatic CSR approach to serve the customer experience, the environment and society, combining innovation and concrete performance, with long-term monitoring.

⁽¹⁾ https://www.covivio.eu/wp-content/uploads/sites/6/2023/08/5.-Tomorrows-offices-flexibility-first.pdf

⁽²⁾ https://www.covivio.eu/wp-content/uploads/sites/6/2023/08/PR-Operated-Office.pdf

3.3.1.2 Exceed construction standards

For many key account tenants, energy and environmental performance has become a prerequisite that impacts on their choice of location. In addition, criteria contributing to the well-being of their employees are becoming increasingly important to their choice of location (user-friendliness, services, connectivity, accessibility, etc.). Covivio incorporates these new expectations into the buildings it develops, manages and renovates by exceeding construction standards, with the use of certifications and labels (3.3.1), as well as innovative solutions that go beyond legal obligations and anticipate changes in regulations.

For Covivio, the building of tomorrow is both sustainable and smart and must simultaneously display the following five features:

THE BUILDING OF TOMORROW

FLEXIBLE: in novative construction choices fostering fluidity, mixed uses and flexible spaces

SERVICIEL: menu of à la carte services based on the tenant's needs and accessible through a special app

OPEN TO THE REGION in terms of architecture as well as dialogue with local authorities

CONNECTED: "ready for" real estate in terms of building management (BMS, BIM, supervision etc.)

ENVIRONMENTALLY EFFICIENT: comprehensive eco-design approach, use of new materials, biophilia, renewable energy, etc.

These characteristics have been defined by a dedicated internal working group composed of representatives of the Technical, Innovation, Sustainable Development, Asset and Property Management Departments. A grid showing the innovation criteria constituting the building of tomorrow was created. Each renovation or development project is compared with these standards by the Investment Committee, to ensure compliance with the strategic and essential criteria defined by Covivio and to incorporate, where appropriate, additional features in terms of sustainability.

In 2020/2021, CSR specifications were drafted in coordination with the European teams, in order to define the types and levels of labels and certifications used for Covivio's developments and renovations; this framework is intended to be shared internally with the technical teams (and management given its educational nature) and externally with architects and engineering consultants, in order to inform them of the company's standards.

As a developer, Covivio engages its stakeholders in its construction projects through a strong partnership-focused relationship and detailed procedures. For each certified project: four key documents detail technical and environmental performance: environmental notice, management system of the operation, assessment of the environmental quality of the building (HQE or BREEAM), low-nuisance construction site charter. The latter commits all those involved in the project and details the environmental principles to be followed as well as specific objectives for each project. It draws up a list of recommendations on the following subjects (at a minimum): waste, acoustics, consumption of resources, communication with local residents, materials, social aspects (comfort, safety, well-being). The charter explains each person's roles and sets specific objectives: for example, aiming for an 85% recovery of construction waste, limiting the maximum noise level on the construction site to 80 dB (A), using 80% PEFC- or FSC-certified wood, etc.

Commitment to the well-being of clients

People in the northern hemisphere spend around 90% of their time in an interior environment. A building has an impact on the health and well-being of its occupants, due to its temperature, indoor air quality, the quality of its lighting, noise and the amount of vegetation. By aiming for the best construction standards, Covivio seeks to optimise the comfort and well-being of the users of its buildings. In the framework of its Purpose, Covivio has been committed to having a well-being-related label for all new development projects.

In total, at the end of 2023, 25% (in Group Share value) of the Group's office assets were certified on well-being. For the development pipeline, the figure was 60% (in Group Share value).

These labels make it possible to measure and improve the consideration of comfort, health and well-being issues in the construction (WELL, OsmoZ) and management (Fitwel) of a building.

In addition to building and/or operation certifications, the international health crisis linked to the Coronavirus has led Covivio to strengthen prevention and hygiene practices in its office buildings under direct management (multi-tenant). The certification developed with Bureau Veritas, as part of Covivio's CARE programme, includes the drafting of a strict health protocol and the performance of audits to ensure its proper deployment on site. It also takes into account the training of operational teams. The health protocol is shared with the tenants of the sites as well as all service providers working on the buildings.

Promoting a culture of inclusion in the workplace

The result of a study carried out with the support of the design agency Total Tool and Professor Giulio Ceppi of Politecnico di Milano, Covivio has established scenarios and guidelines to design more inclusive workspaces. This document, available online ⁽¹⁾ , also details the principles to be followed in the design and layout, to promote diversity and inclusion. It includes an evaluation questionnaire to identify the main areas for improvement. This involves integrating the building into the urban fabric and the region, linking it to the city by ensuring the permeability of spaces, the presence of services and access to outdoor green spaces. As for design and furniture, it is mainly furniture that is targeted. It must be ergonomic and comfortable for all, offering the freedom to work in a flexible, collaborative and autonomous way. Finally, an important element of Covivio's strategy, the service component is fundamental and the building must offer services that simplify the daily lives of employees while improving their well-being.

Accelerating the transition to the circular economy

The design and management of Covivio's buildings address the challenges posed by the circular economy as ways to consistently implement its CSR policy. This approach aims to separate economic growth from the depletion of natural resources by creating innovative products, services, business models and public policies. According to the French Circular Economy Institute ⁽²⁾ , this includes "extending the life of materials (reuse, recycling) and products (eco-design without in-built obsolescence) throughout the life of a product or service".

Awareness-raising actions are carried out with the teams, in order to integrate the challenges of the circular economy into the activities and day-to-day operations of the company. The use of sustainable and more easily recyclable materials is now widespread in Covivio's practices, in line with the environmental certifications targeted by the Group. For example, as part of Covivio renovation projects in Germany, glass wool and other recyclable materials are systematically used to insulate façades and roofs of housing. In addition, all of these priorities are covered by targets set out in the certifications Covivio hopes to obtain for its development projects, such as HQE Target 3: "Low-impact work site", with respect to optimising waste management, minimising on-site noise and other forms of pollution and reducing on-site resource consumption.

As another example, as part of the So Pop project in Saint-Ouen, a precise audit of all equipment likely to be reused or recycled was carried out prior to cleaning. The list of equipment was uploaded to a dedicated online platform (Cycle Up) to be sold, in order to give it a second life. This prevented equipment that was still in working order from being thrown away and promoted employment through local structures (associations, start-ups and local authorities). During the construction phase 3,000 m ² of used suspended ceiling came from the circular economy sector, i.e. 10% of the total covering. Likewise, the site used recycled acrylic paint, which made it possible to divide by 12 the carbon impact on this item. On the cleaning site of a Paris asset, Covivio used the services of a company specialising in reuse, to give a second life to certain pieces of equipment on site. Following a resource assessment, the company was able to identify 740 kg of equipment to reuse.

Low-nuisance construction site charters drafted by Covivio for all its certified developments in France cover these circular economy aspects. Targets in this area are set to ensure that all stakeholders on the site comply with a high level of environmental performance. For example, for the IRO project in Châtillon, the target for recycling site waste was set at 85%, including 50% material recovery. Precise monitoring of waste by stream is also specified in these charters, recalling the best practices to be adopted.

An exemplary deconstruction: the B2/B3 buildings of the Majoria park in Montpellier

As part of the deconstruction of these two buildings built in the 1960s and 1970s with a total surface area of 26,000 m ² , Covivio paid particular attention to the reuse and repurposing of materials on site:

―	Site waste management: 839 tonnes of recycled materials and 94 tonnes of recovered materials, i.e. 84% of total waste;
―	Reuse: 237 tonnes of materials were also reused, mainly floors, fittings and insulation;
―	Low-carbon deconstruction: the on-site crushing of 23,000 tonnes of concrete made it possible to avoid 11,660 journeys to the nearest quarry, i.e. 32.5 tCO ₂ e;
―	A socially responsible project: 789 hours of workplace integration as part of this project and four associations benefiting from reused materials.

In Italy, a partnership with Politecnico di Milano (3.4.1.3) has resulted in the creation of a database that contains a wide range of sustainable building materials. Available on the University's Intranet site, the database is constantly updated with new sustainable materials, bringing them to the attention of the technical teams.

To continue to make progress towards a circular economy, Covivio takes part in projects with organisations (Orée, IFPEB, etc.), suppliers and universities. It was therefore in 2020 that Covivio's So Pop project took part in the HQE Circular Economy Performance test organised by the HQE-GBC Alliance, which tested the analysis of material flows (Building MFA), which calculates circularity indicators over the entire life of a building.

Innovation for the environment: some examples used in development projects

―	Timber frame of the "Stream Building" in Paris: 1,820 m ³ ;
―	Smart variable-tint glazing: renovated building rue Jean Goujon in Paris;
―	Timber-concrete slab: solution implemented for a housing project in Bobigny (93). The challenge consisted of lightening the structure of the building due to the site constraints;
―	Low-carbon concrete: in Antony (92), construction of low-carbon concrete foundations.

In addition, there are many other initiatives that aim to focus on the circular economy through reuse (technical floors, etc.), the use of recycled materials (Circouleur paint, etc.) or the recycling of materials and equipment.

⁽¹⁾ https://www.calameo.com/covivio/read/005608009013f6890843c?authid=JffGBcdxlLPR.

⁽²⁾ https://institut-economie-circulaire.fr/economie-circulaire/.

Giving a second life to office buildings

As the owner of a diversified portfolio, Covivio has for several years identified buildings that could be converted into residential buildings when residential use becomes more relevant than commercial use, in view of the expectations of the city and the market. This strategy makes it possible to combat the additional artificialisation of land and give a second lease of life to an urban area, by developing housing in line with new ways of living and working. In line with its sustainable development strategy, Covivio integrates the issue at several levels, for example:

―	from the design stage, with housing benefiting from a double or even triple exposure, naturally ventilated to offer maximised summer comfort. Covivio also systematically includes outdoor spaces;
―	during construction, focusing on bio-sourced materials and taking into account the most stringent air quality standards.

To go further, Covivio has decided to set targets for 2025 for this residential development activity, and the transformation of offices into housing, in particular:

―	aim for full alignment with the taxonomy (including the DNSH);
―	environmentally certify 100% of projects;
―	create green spaces on 100% of projects and install rainwater harvesting systems

Optimising the management of development and operation through BIM (Building Information Modelling)

BIM builds a comprehensive and consistent 3D building database and maintains it throughout the lifetime of a real estate project: design, completion, operation, and deconstruction. BIM also improves operational management of the building by facilitating interior design and access to fixtures (geolocation of equipment). As part of a circular economy approach, BIM is also a tool that enables traceability of materials and equipment so they can be reused. Covivio already owns buildings constructed using BIM and most of its recent development projects now use this technology. On the strength of its experience in this area, Covivio won the Silver BIM in 2021 for the Stream building project in Paris. The digital model made it possible to anticipate the technical constraints related to the project's environment and to involve all project stakeholders in a collaborative approach.

At the end of 2023, 100% (by surface area) of new commercial development operations in France, Germany and Italy were implemented with the help of BIM i.e. three operations representing more than 140,000 m ².

In 2020/2021, with the help of an external consultant and in conjunction with the various technical, asset and property management teams, a European BIM/BOS ⁽¹⁾ technical specification was drawn up in order to better characterise Covivio's needs in this area and the profile of BIM environments that will be created as part of future projects in France, Germany and Italy. This document also aims to better link BIM in the design phase and BOS in the operational phase in order to optimise the services provided. On this basis, testing of a BOS solution was launched in 2022 on the Silex 2 building and then on the l'Atelier site, Covivio's future headquarters in the 8th district, in order to test the functionalities offered by the BOS. The BOS makes it possible to collect, enhance and distribute data from various tools and equipment in order to optimise management processes, implement services and enhance the appeal of assets.

Laying the groundwork for the "Smart City" of the future

Gradually, buildings will become part of the energy distribution network: sometimes producers and sometimes consumers, smart buildings will be an integral part of smart grids managed at the scale of neighbourhoods, cities, themselves elements of larger entities. Covivio is actively involved in energy flexibility studies, in particular FlexEner, in partnership with IFPEB ⁽²⁾ , RTE and Enedis, in order to lay the groundwork for the smart city of the future.

In 2020, Covivio tested R2S-4Grids, a label created by the Smart Building Alliance (SBA) and supported by Certivea, as part of its Toulouse office building "21 Marquette" (since sold), the first building to be given the R2S label (2018). This same building was used to test the new R2S-4Grids label, which promotes energy management and energy demand response. To qualify the performance in terms of connectivity of a certain number of sites under development or renovation, in particular on 100% of its Wellio sites, Covivio uses dedicated labels: R2S for example in Paris on Jean Goujon, So Pop and l'Atelier, Covivio's future Paris headquarters, WiredScore on Flow in Montrouge, Wellio Dante and Wellio Duomo in Milan, SmartScore as part of the Alexanderplatz project in Berlin.

⁽¹⁾ BOS: Building Operating System.

⁽²⁾ French Institute for Environmental Performance in Construction.

3.3.1.3 Towards 100% certified buildings

Since its first development project, the Dassault Systèmes headquarters completed in 2008, Covivio has chosen to measure the performance of its new buildings through global, internationally recognised certifications, such as HQE, BREEAM or LEED. Likewise, in order to improve the performance of its assets already in operation, Covivio has the HQE Exploitation, BREEAM In-Use and ISO 50001 certifications to highlight the quality of its energy management. Furthermore, certain tenants use labels that are particularly suited to their activities, particularly in the hotel sector.

As a partner in the development of certain labels, Covivio is also a pioneer in testing new standards such as R2S, BiodiverCity or even more recently by committing to the creation of a pan-European low-carbon label with the support of the BBCA association.

The Low Carbon Building Initiative, to promote low-carbon buildings in Europe

Launched at MIPIM in 2022, the Low Carbon Building Initiative (LCBI) brings together major European real estate players to promote low-carbon buildings and halve the sector's CO ₂ emissions, based on the Life Cycle Analysis. After a year of collaborative work and comparative data analysis between experts and project owners ⁽¹⁾ , LCBI launched the method on 25 January 2024, as well as the associated label, in eight countries - Germany, Belgium, Spain, France, Italy, Luxembourg, the Netherlands and the United Kingdom. This method is aligned with the main existing tools and standards (Taxonomy, Level(s), CRREM, RICS). Available publicly on the LCBI website, this European method simplifies the comparison of carbon footprints across Europe. It primarily targets new buildings in the office, residential and hotel categories. Its broader objective is to eventually encompass all new, renovated and existing buildings.

Covivio is one of the few players who have experimented with Level(s), launched by the European Commission to promote sustainable construction and the transition to the circular economy. It is a label covered by the European "green" taxonomy. This system, based on various indicators (energy, water, carbon, etc.), aims to define a common language. Level(s) is cited several times in the first texts organising the European Taxonomy.

For Covivio, the reliance on certifications and labels meets a dual requirement of transparency and accountability. For Covivio, these markers are part of its global and sustainable vision of for buildings.

⁽¹⁾ https://www.bureauveritas.fr/sites/g/files/zypfnx146/files/media/document/2024_01_25%20LCBI%20Press%20Release%20ENG_0.pdf

3.3.1.3.1 Environmental certifications of the portfolio at 31 December 2023

The certification rate is the proportion of buildings certified for their construction (HQE, BREEAM, LEED) and/or their operation (BREEAM In-Use, HQE Exploitation, etc.).

Covivio has set itself the target of having 100% of its core assets certified by the end of 2025. At the end of 2023, this rate was 95.3% (93.2% at the end of 2022). By exceeding regulatory standards, Covivio is helping to create an offer that meets new market expectations. These global certifications are recognised by the chain of players in the sector: builders, consultants, real estate companies, tenants, bankers, shareholders. The framework for defining green products is set to evolve under the impetus of the European Green Taxonomy (3.3.4.1).

In addition to these global certifications, new labels have been created that focus on a building's performance in terms of specific issues, namely energy with BBC renovation, Effinergie+, E+C-; carbon footprint with BBCA (3.3.2.3); biodiversity with BiodiverCity (3.4.1.4); connectivity with R2S or WiredScore (3.3.1.3); and well-being and health with Well, OsmoZ or Fitwell, etc. Covivio is regularly a pioneer in the experimentation of these labels, even collaborating in the drafting of some of them.

Covivio experiments with the Effinergie Patrimoine label

Launched in 2020, the Effinergie Patrimoine experiment aimed to "encourage the completion of demonstration projects, promote feedback and the emergence of best practices and thus remove existing obstacles to the efficient energy rehabilitation of heritage buildings ⁽¹⁾ ". Two Covivio renovation projects are among the nine winners of this experiment with the Paris operation: the Paris-Monceau project and L'Atelier, Covivio's European headquarters in the 8 ^th district.

Change in environmental certification rates for the various portfolios

Performance against this indicator is monitored as part of monthly internal CSR reporting and plays a decisive role in development, upgrade and asset replacement policies. This indicator is also used in calculating the long-term incentive/ variable remuneration of the corporate officers and managers concerned.

Offices

Share of certified buildings and distribution by type of certification (Group Share value)

France

Italy

Germany

The portfolio of offices acquired in Germany in 2020 is subject to a certification programme aimed at having 100% of the buildings certified by the end of 2025. Several of them are operationally certified (BREEAM In Use). At the end of 2023, 61.9% of assets were certified, a rate that will be improved with the launch of the renovation of the Icon in Düsseldorf, aiming for DGNB Gold certification.

⁽¹⁾ https://www.effinergie.org/web/labels/patrimoine.

Operation Plano in Berlin - Schöneberg

This new construction project of 14,150 m ² , to be delivered in 2024 is banking on reversibility and was designed as an innovative and sustainable ecosystem, focusing on warm and bright spaces and offering large green terraces:

―	use of geothermal energy for heating and cooling, thanks to heat pumps and radiant ceilings which operate at low temperatures and are therefore more energy-efficient;
―	1,200 m ² of photovoltaic panels with a capacity of 100 kW (i.e. 125 MWh/year);
―	a fully planted and permeable terrace with retention and drainage trenches, and green spaces designed with an ecologist/ ornithologist;
―	up to 80% recycled concrete with the CSC label (certified sustainable concrete label);
―	direct access to public transport and 50% of spaces are for charging electric vehicles.

The project is also aiming for DGNB Platinum, KFW Efficiency Building 40 + Renewable energy and WiredScore Gold certifications and labels.

German Residential

In 2018, Covivio began a process of certification of the whole of its residential portfolio in Germany according to the NF Habitat HQETM standard which certifies the environmental performance of assets. This approach establishes a management system that is regularly assessed and based on four commitments: Responsible management relating to the project owner's organisation; Quality of life; Respect for the environment; Economic performance. Certification of the entire portfolio was achieved in December 2019 following 481 site visits and a management audit which revealed very good quality of the portfolio and its management.

The sustainable management system monitoring audit, which took place in 2022, highlighted the dynamic of continuous improvement driven by Covivio since the first year of certification. After implementing Cerway's first recommendations in 2020 by modifying its framework contracts with its suppliers to use more sustainable products, this year Covivio presented its smart consumption metering project for nearly 5,000 homes in the portfolio, and the installation of charging stations for electric vehicles in its fleet.

Covivio also successfully tested the HQE Sustainable Building certification in the Berlin Biesdorf development. With very good access to public transport and numerous green spaces nearby, this project involves the development of 106 housing units over four new buildings with ground floor and two or three floors in a residential zone where Covivio already owns eight buildings. The building delivered in 2022 obtained the "Exceptional" level. On the strength of this first experience, Covivio Immobilien has undertaken to have all of its development projects intended to be retained for rent certified (HQE, NaWoh or equivalent).

Hotels in Europe

The environmental certification of the hotel portfolio benefits from the environmental commitment of tenants, major operators developing their own sustainable development strategies. Some use labels specific to hotels (Green Key, GSTC ⁽¹⁾ , Green Hotel) and leisure (Green Globe), or have established systems equivalent to environmental operation certifications, like Planet 21 for Accor or Green Engage for IHG. 72% of the portfolio held such a label at the end of 2023 and Covivio Hotels has initiated a Green Key certification process for its entire portfolio held as operating properties. Moreover, and without this being taken into account in the calculation of the certification rate of Covivio's assets, it should be noted that 26% of the hotels owned have the Green Leader status of TripAdvisor.

Share of certified buildings and distribution by type of certification (Group Share value)

⁽¹⁾ Global Sustainable Tourism Council: has developed an internationally recognised standard.

3.3.1.3.2 Profile of environmental certifications obtained and targeted for the tertiary portfolio

The table below presents the various levels of certification obtained or targeted for the projects developed by Covivio. The certifications used for the construction or renovation phase are mainly HQE, LEED and BREEAM. An Italian asset was also certified ITACA, level Good. These certifications cover various themes concerning integrating environmental and social issues into development projects.

In Group Share value, 52.7% of commercial assets (67.2% for offices) have HQE/LEED/BREEAM certification with a level greater than or equal to Very Good (the best level is given in the event of dual Operations/Construction certification). In 2015, this share was only 18%.

Summary of certifications obtained and targeted for the Group's tertiary assets or projects

^* Restated for assets certified for operation and construction

Certifications obtained:

―	HQE: 525,000 m ² (of which 70,000 m ² on operations) exclusively in France, plus the entire German Residential portfolio, i.e. 2.9 million m ² ;
―	BREEAM: 1.6 million m ² (of which 1.1 on operations) in our various locations;
―	LEED: 300,000 m ² mainly in Italy and more recently in Germany;
―	DGNB: 60,000 m ² exclusively in Germany.

3.3.2 Managing operating expenses

The CSR risk mapping carried out by Covivio underscored the importance of managing operating expenses, especially owing to the implications in terms of client satisfaction. The expenses relate to energy, water, waste and certifications for buildings in operation. This subject took on a particular importance from mid-2022 and during the winter of 2022/2023, with the very sharp increases in energy prices. Prices have since eased but have not returned to the previous situation.

As Covivio is both the owner/lessor and usually the developer of its own buildings, issues concerning operating expenses are addressed from the beginning of the project, and then for any asset replacement which is carried out during its construction and, of course, during the management phase. Obtaining environmental certification (HQE, BREEAM, LEED) for 100% of projects under development enables high levels of performance to be achieved, notably in terms of consumption of energy and water. Covivio also often chooses to supplement these certifications with specific labels, notably on energy with Effinergie+, or ISO 50001 for buildings in operation. In addition, these initiatives reduce the financial consequences that might arise if a carbon tax is introduced. The costs generated by certifications in the form of property and facility management fees and auditing and certification fees (certification body, support services) are offset by the reduction in consumption, particularly in light of the current rise in energy and water prices. In addition to energy, carbon and water performance, the operational certifications (HQE Exploitation or BREEAM In-Use) cover many other subjects: quality of life, environment, responsible management, etc. As of 2010, Covivio has considered that these certifications constitute a relevant tool to monitor and improve the environmental performance of its portfolio. The feedback is very positive, in terms of the momentum created with tenants and suppliers, recognition from analysts and the world of finance, and, of course, the improvement of the CSR performance of buildings.

Extend the sobriety efforts made during the winter of 2022/2023

In response to the energy and climate crisis, in 2022 the French government required energy consumption to be reduced by 10% by 2024. Companies were thus called upon to identify and activate all the levers at their disposal to reduce consumption.

Covivio had already implemented a number of levers, in particular through client awareness (environmental Committees, technical meetings on the tertiary eco-energy system (tertiary decree) and building maintenance, environmental certification), its work plan and development by integrating energy performance or the implementation of supervision and an energy management contract.

In September 2022, Covivio sent a letter to the tenants of the tertiary buildings it manages directly concerning the energy efficiency plan. This approach was part of the awareness-raising process carried out on the implementation of the provisions of the tertiary decree. This letter recalls the main eco-friendly actions to be implemented in the office to reduce and optimise energy consumption in three areas:

―	adaptation of set points (heating and air conditioning): during working hours, the heating set point will be at 19°C and that of the air conditioning at 26°C, with the possibility of a remote control amplitude of +/- 1.5°C. When the building is unoccupied (non-working hours, weekends, and public holidays), the heating setpoint will be at 18°C and the air conditioning suspended (or modulated). Air conditioning must be turned off when windows are open;
―	lighting: switching off of lighting in common areas (except security lighting) and illuminated signs from 9 p.m. to 7 a.m. Switching off lights in shared meeting rooms outside periods of use and installation of presence detectors. If necessary, shutdown of façade lighting;
―	office: switching off office equipment including digital screens (rather than putting it on standby).

Clients are also invited to share any suggestions that could help achieve this energy efficiency objective.

Covivio is a signatory of the Energy efficiency charter for tertiary buildings:

The national energy sobriety plan launched in the autumn of 2022 has made it possible to reduce France's annual electricity and gas consumption by 12%, taking into account the effects of weather;

In order to continue this momentum, two charters were proposed: one in favour of professional federations and associations, which promoted it among their members; the other for private companies in our sector;

On 18 October 2023, 80 players signed these two charters, in particular the FEI (Fédération des Entreprises Immobilières) and Covivio, in the presence of the Minister for the Energy Transition, Agnès Pannier-Runacher.

3.3.2.1 Improve the portfolio's environmental performance

Improving the portfolio's environmental performance aims to reduce its footprint in terms of energy (3.3.2.2), carbon (3.3.2.3), water (3.3.2.4), and waste (3.3.2.5), as well as to increase its occupants' comfort and well-being, through the choice of materials, the quality of space and air in the building and the care given to issues such as proximity to nature and services.

For each portfolio, Covivio's multi-year work plan includes the energy and carbon performance, and more generally, the environmental performance as a priority objective. The installation, maintenance or replacement of more efficient equipment contributes directly to the reduction of greenhouse gas emissions from assets. The strong partnership dynamic at the heart of the Group's strategy is also an important lever for achieving its objectives. In order to better characterise the risks and opportunities related to its carbon trajectory, Covivio calculated the investments necessary to achieve its GHG emissions reduction targets in 2022.

Methodology used

―

Review of portfolio performance based on historical data and via interviews with operational staff, and energy audits (Hotels in Europe, Italy Offices, Germany Offices).

―	Special case France: work concomitant with the implementation of the tertiary decree and the study carried out on the portfolio by E-nergy to verify the compliance of the assets with the objectives of the tertiary decree.
―	Special case Germany: work with an external service provider to set up a platform to monitor consumption and determine green Capex per asset.

―

Consolidation and extrapolation of the measures to be implemented to achieve the carbon targets by portfolio. All assets were included in the study's scope, some benefited from in-depth energy audits, which were extrapolated to other assets. The measures identified were broken down as follows, in order to best guide the multi-year work plans:

―	quickwins (ROI < 2 years): optimisation of BMS, tenant awareness, sub-metering, equipment maintenance, occupancy sensors, automatic temperature adjustment according to the weather;
―	medium-term (ROI 2-9 years): deployment of LEDs, heat pumps, more efficient heating equipment, installation of solar panels, solar protection systems;
―	long-term (ROI > 9 years): thermal insulation, replacement and modernisation of windows, installation of building management systems, installation or replacement of various kinds of equipment;
―	the study also identifies the purchase of green electricity as an additional lever for reducing emissions.

The study resulted in the costing of a works plan of €254 million (Group Share) in Capex to achieve the carbon targets that the Group set for itself, i.e. €32 million per year, making it possible to reduce the carbon intensity on the operation phase between 2020 and 2030 by 44% (year of study: 2019 for hotels and 2021 for the France and Italy Offices).

In 2023, €362 million were invested in the environmental improvement of our portfolio in Europe by including developments (taxonomy definition).

An ambitious multi-year work plan

Given the number of residential assets held in Germany, the energy renovation programmes for buildings are spread over several years in line with the Group's targets for reducing energy consumption and greenhouse gas emissions. In 2023, the value of renovations improving the environmental performance of assets reached €18 million (€13 million in 2022). In concrete terms, this work plan resulted in the replacement of energy-intensive equipment, the installation of double or even triple glazed windows, or even the insulation through façades or roofs and of course the switch to LED to light the common areas. In line with previous years, Covivio replaced old boilers with modern ones, enabling a reduction in the capacity of the equipment installed by an average of 15%.

3.3.2.2 Energy trajectory

The energy and environmental mapping study of the portfolio, carried out with the CSTB in 2009/2010, was based on around twenty indicators. This mapping allowed Covivio to set out its multi-year objectives in terms of its portfolio's energy and carbon performance (3.2.6).

3.3.2.2.1 Main indicators at Group level

Reporting scope: 5,575,674 m ²

Energy intensity of tertiary assets: 171.8 kWhfe/m ²

Energy intensity of residential assets: 147.6 kWhfe/m ²

Energy mix of assets

3.3.2.2.2 Change in the energy consumption of the various portfolios

In France, the tertiary eco-energy system (attached to the so-called "tertiary" decree), in line with the ÉLAN law (1) requires, for any building, part of a building or real estate complex of at least 1,000 m ² of floor area, a reduction in energy consumption of 40% by 2030, 50% by 2040 and 60% by 2050. This decree was supplemented by the "method" and "absolute values" orders from 2020, defining energy consumption thresholds (depending on the type, geographical area, etc.), expressed in absolute value (kWh/m ² /year). These thresholds may be chosen as alternative targets to the -40% target, particularly for already high performing buildings. Covivio has anticipated these measures in the context of discussions with tenants, in particular within the framework of the related environmental Committees. At the end of 2020/beginning of 2021, a first newsletter was distributed to more than 300 tenants to inform them of the implementation of this system, which plans for the introduction of an obligation to annually report energy consumption on the OPERAT platform (Observatory of Energy Performance, Renovation and Tertiary Actions). This will involve both lessor (common charges) and lessee (tenant areas). More than 130 tenant meetings were conducted in 2021 on this subject, covering 100% of office and hotel customers in France. In 2022, an audit of office buildings was carried out to check the conditions under which the objectives of the decree and its instructions could be achieved. For hotels, the thresholds expressed in absolute value were only published at the end of 2023, which pushes back an analysis identical to that carried out for offices until 2024.

Since 2019, Covivio has had a monitoring platform, PowerBat, enabling it to collect real-time consumption data. Their analysis is carried out with the assistance of a single energy manager for the portfolio. This makes it possible to optimise the energy management of the sites, identify any deviations, and ensure the achievement of the objectives set. The first buildings in the German Residential portfolio were also equipped with smart metering systems in 2023 and Covivio has begun a pilot phase to test connected boiler rooms.

As part of its work to quantify the investments necessary to achieve the CO ₂ reduction targets, Covivio had 133 new energy audits carried out on its commercial portfolios. These audits made it possible to gain knowledge about the assets and to identify the most appropriate measures to reduce the consumption of buildings.

The graphs below show the energy consumption history of the four portfolios analysed.

Covivio has expanded its reporting scope since 2021, by collecting the consumption data of single-tenant buildings in Italy (3.7.1.3) and the portfolio of offices in Germany acquired in 2020 (3.7.1.4). In 2023, the scope of reporting on energy and water consumption increased significantly, from a representative sample to almost the entire portfolio held by Covivio Immobilien (3.7.1.5) making most of the historical record non-comparable in terms of reporting scope.

France Offices

2010/2030 objective: -50%, ie 270 kWhpe/m ² /year

Achieved: -59% at 31/12/2023

Collection rate: 90%

Germany Offices (0perational control)

2020/2030 objective: -15%, ie 194 kWhpe/m ²

Achieved: -4.5% at 31/12/2023

Collection rate: 100%

Italy Offices (Operational control)

2015/2030 objective: -30%, ie 137 kWhpe/m ² /year

Achieved: -42% at 31/12/2023

Collection rate: 100%

Hotels in Europe

2010/2030 objective: -50%, ie 308 kWhpe/m ² /year

Achieved: -55% at 31/12/2023

Collection rate: 91%

Change in the energy consumption of the portfolio on a like-for-like basis (in kWhfe/m ² )

France Offices

Italy Offices (Operational control)

Germany Offices (Operational control)

Hotels in Europe

3.3.2.2.3 Energy performance diagnostics

In accordance with the European Directive on the energy performance of buildings and its transposition into national law in the countries where Covivio operates, the Group ensures that energy performance diagnostics are carried out on its buildings (Energieausweis in Germany, Attestato di Prestazione Energetica in Italy). As the methodologies adopted by each country are different, it is difficult to make comparisons between performance levels. Particular attention has been paid to the change in the score obtained following a renovation, to assess the gain in energy performance.

Rate of diagnostics performed per activity

France Offices: 100% by value/100% by surface area.

Italy Offices: 100% by value/100% by surface area

Germany Offices: 97.1% by value/94.7% by surface area.

German Residential: 90.9% by value/93.4% by surface area.

Hotels in Europe: 84.3% by value/81.7% by surface area.

Breakdown of energy performance diagnostics across the portfolio (in value)

	A	B	C	D	i.e. ≥ D	<D
Offices	12.8%	17.6%	20%	21.2%	71.6%	28%
Hotels	1.5%	4.3%	24.7%	14.7%	45.2%	39.1%
Residential	2%	10.1%	13.8%	26%	51.9%	39.1%

	Without EPC
Offices	0.4%
Hotels	15.7%
Residential	9.1%

In accordance with the regulations in force at the date of the EPCs, some of the blank diagnoses are included in the rates presented above (3.7% for offices and 1.8% for hotels).

3.3.2.3 Low-carbon transition

The greenhouse gas emissions presented below are directly related to energy consumption in the operation of buildings, while the data used to calculate the Group's carbon trajectory cover the entire life cycle and therefore include building and materials.

3.3.2.3.1 Main indicators at Group level

Reporting scope (actual data):	5,575,674 m ²
Reporting scope (extrapolated):	6,354,856 m ²
Total GHG emissions	157,876 teqCO ₂
Scope 1	1,771 teqCO ₂
Scope 2	3,012 teqCO ₂
Scope 3	125,642 teqCO ₂
Carbon intensity of the assets	24.8 ^* kgCO ₂ e/m ²

^* after reintegrating emissions from energy generation

By breaking down the intensity of CO ₂ = 22.52; CH4 = 1.98; NO2 = 0.13; HFC = 0.001; PFC = 0; SF6 = 0.005; NF3 = 0; Other GHGs = 0.179.

3.3.2.3.2 Change in the greenhouse gas emissions of the various portfolios

The ratios set out below have been calculated using energy consumption data collected for Covivio's various portfolios. These calculations include greenhouse gas emission ratios specific to each country and climate adjustments to allow data to be compared between years (3.7.1). Reporting scopes for each portfolio are the same as those referred to in the section on energy (3.3.2.2). Greenhouse gas emissions are down overall on the operational scope (from 8.8 to 7.4 kgCO ₂ e/m ² this year) while they are fairly stable in the other portfolios despite the recovery in energy consumption.

France Offices

2010/2030 target: -70% (i.e. 7.9 kgCO ₂ e/m2)

Achieved 12/31/2023: -60.3%

Collection rate: 90%

Italy Offices (Operational control)

2015/2030 target: -68% (i.e. 13.4 kgCO ₂ e/m2)

Achieved 12/31/2023: 86.5%

Collection rate: 100%

German Offices (Operational control)

2020/2030 target: -25% (i.e. 6.7 kgCO ₂ e/m2)

(provisional target given the high vacancy rates at some portfolio assets)

Achieved 12/31/2023: -33%

Collection rate: 100%

Hotels in Europe

2010/2030 target: -70% (14.6 kgCO ₂ e/m2)

Achieved 12/31/2023: -49%

Collection rate: 91%

Change in GHG emissions on a like-for-like basis for the portfolios (in kgCO2e/m ² )

France Offices

Italy Offices (Operational control)

Germany Offices (Operational control)

Hotels in Europe

3.3.2.3.3 Harnessing renewable energy

Renewable energy has great potential to reduce the carbon footprint of a building. In the various development and renovation projects conducted by Covivio, the use of renewable energies is systematically studied in order to determine the possibilities offered by taking into account the specificities of the environment and the regulatory context: geothermal, photovoltaic, etc.

Many Covivio buildings benefit from a green electricity contract, a choice made in conjunction with the tenants or by themselves in the case of multi-tenant buildings. In Italy, Covivio has chosen green electricity for all its assets under direct management since December 2015. At the end of 2023, the share of green electricity in total electricity consumption was 29.7% (26.5% at the end of 2022) of the total portfolio (data from environmental reporting) and 80% of the directly managed portfolio, up compared to 2022 (at 79%). The Group has set itself a target of 100% of the electricity used in the scope of assets under direct management (Scope 2) being green by 2030.

Several sites were also equipped with thermal solar panels (domestic hot water) or photovoltaic panels (production of renewable energy). Use of geothermal energy is also widespread, as well as innovative initiatives such as Massileo© in Marseille, a warm water system managed by Dalkia, which supplies Euromed Center buildings with hot and cold water based from a 100% renewable energy source: ocean thermal energy conversion.

Photovoltaic production in the German Residential portfolio

47 residential buildings are equipped with photovoltaic panels in Germany. An investment made by Covivio since 2012 (with an average cost of €436/m ² excl. VAT, depreciated over nine years on average) which has enabled development of know-how in the field, and anticipated the shift in regulations towards passive buildings. This energy is sold to local networks and is not consumed on its own. In total, 909,145 kWh were generated in 2023, down compared to the previous year due to less solar power (973,820 kWh in 2022). Photovoltaic production generated €434 thousand in revenue in 2023, which can be found in the regulatory tables related to the taxonomy (3.7.3.1)

Evolution of production and gains related to photovoltaic production for the German Residential portfolio

Contributing to carbon neutrality at the building level

Carbon neutrality cannot be envisaged at the time the building is built or renovated, except through offsetting. On the other hand, the operation of the building can aim for neutrality by using renewable energies to meet its various needs: lighting, clean hot water, heating, etc. Some Covivio commercial buildings have these characteristics when they use electricity exclusively (also for heating or geothermal energy, for example) and benefit from green electricity contracts. In the operational control scope, 24% of the assets (excluding the tenant areas) are concerned. By adding very low-intensity buildings (-2 kgCO ₂ e/ m ² /year), this rate rises to 36%.

In 2023, an offsetting project was financed for the Wellio sites in Italy, following a carbon assessment carried out at the level of the two buildings recently refurbished to the best environmental standards and already supplied with green electricity.

Focus on virtuous renovation: the case of l'Atelier (6,500 m ² , delivery January 2024)

The renovation of this building complex, historically housing offices and a telephone exchange, was carried out to the highest environmental standards (HQE, BREEAM Excellent, BBCA, Osmoz, R2S, BiodiverCity). It enabled an energy saving of 44% (regulatory calculations) and the creation of 1,000 m ² of green spaces. This renovation also made it possible to opt for a decarbonised energy mix by connecting the building to the urban grid (the building was initially heated with gas) and by subscribing to an electricity contract with a guarantee of 100% French renewable energy.

The EPC on delivery shows a level C, to be compared with the EPC class G obtained by reconstituting the EPC level on the basis of the building's known consumption. .

Since 2014, Covivio Immobilien has chosen, when possible, to connect its buildings to district heating networks that use co-generation. This solution has been used many times in cities such as Berlin, Oberhausen and Mulheim, where Covivio holds a large number of assets. These renovations also provide an opportunity to implement new solutions.

In Italy, the Garibaldi Towers were equipped with 804 m ² of photovoltaic panels on the façades and solar water heaters on the roof in 2010 (48 MWh produced in 2023). Encouraged by strong regulations on the subject (60% of the building's energy needs must be provided by renewable sources), the developments recently delivered and those under development in Milan also include photovoltaic equipment, such as the buildings in the Symbiosis district (38 MWh produced in 2023 on buildings A and B) and The Sign (60,000 kWh consumed on site).

In total, Covivio produced 1.3 GWh of electricity thanks to photovoltaic installations on its sites in Europe.

3.3.2.3.4 Life Cycle Analyses (LCAs)

Covivio has carried out Life Cycle Analyses (LCAs) since 2010 in order to quantify the environmental impact of operations at each stage of their life cycle (construction, operation and ultimately deconstruction). These LCAs are carried out by analysing six modules (materials, energy, water, travel, building sites and waste). In 2013, Covivio commissioned France's first LCA on a property renovation (Steel building, Paris 16 ^th ) and in 2014, France's first LCA on a hotel (B&B Porte des Lilas).

Calculation of greenhouse gas emissions avoided for two renovations ("SIMI 2021 Grand Prix", each in their category)

Covivio commissioned a third party to estimate the avoided emissions thanks to the environmentally ambitious construction choices for the Silex 2 and Gobelins projects. By comparing the emissions generated by these operations with different scenarios during the construction and then operation phases, the study made it possible to qualify their carbon performance.

Thus, the renovation of the Paris Gobelins building emitted 535 tCO ₂ e less in total (2.5 kgCO ₂ e/m ² GIA/year) compared to a renovation scenario based on a project that is less environmentally-conscious (in terms of the nature of the materials used or refurbishment work corresponding to the current traditional architectural standards of offices).

The renovation of Silex 2 emitted 17,550 tCO ₂ e less in total (17 kgCO ₂ e/m ² ) compared to a scenario where the old building would have been demolished and then an office building with comparable characteristics would have been rebuilt.

In the operating phase, these buildings will be able to emit less, by up to 24 tCO ₂ e/year compared to an average Paris office building for Gobelins and 30 tCO ₂ e/year less compared to buildings renovated to RT2012 level for Silex 2.

Today, the RE2020 thermal and environmental regulation includes the need to use LCA to combine energy and carbon performance. LCA is also at the heart of the Low-Carbon Building (BBCA) initiative, led by the eponymous association, of which Covivio is one of the founding members.

Bordeaux Noème - Using low-carbon materials

The project aims to create an urban district of 45,000 m ² with 3,500 m ² of services (cooperative grocer, gym, nursery, etc.) and 33,000 m ² of green spaces, 40% of which is open ground and an urban forest of 240 new trees. 700 housing units, including 85 in serviced senior residences, 190 beds in co-living residences. Noème is aiming for a BEE+ label, the BDNA certification (Bâtiment Durable Nouvelle Aquitaine) and the IntAirieur label for air quality.

The Noème project currently underway is an opportunity to test the compressed clay brick. Derived from adobe, it is one of the very first construction materials used by humans. It is made from sieved clay, compressed while still wet in a mechanical press. Once unmoulded, it is left to dry naturally under cover.

A 100% natural material available in quantity on five continents, raw earth has an excellent energy profile. It is extracted locally and its operating costs and delivery journeys are reduced to a minimum. The raw material, construction clay, is located under the topsoil.

3.3.2.4 Water transition

2023 was the hottest year in history, European group Copernicus declared on 6 December, while climate negotiations were in full swing at COP 28. During the summer of 2023, many water restrictions were necessary, even in mainland France, as a result of the heat waves and droughts. Faced with these circumstances and the historic drought recorded in 2022, on 26 January 2023, the government presented its action plan. Objective: "To reduce by a little more than 10% the volume of water withdrawn from our sub-soil by the end of the five-year period", declared the Minister for the Ecological Transition. Among the areas studied: wastewater recycling and an increased fight against leaks.

Water is likely to become a major issue in Europe as climate change starts to be felt. Since 2008, Covivio has prepared reports in this area, enabling it to monitor the objectives set for the operation of its assets. Water is mainly consumed in buildings by tenants for sanitary purposes, and for cleaning the common areas and watering green spaces and even, where applicable, by the operators of company restaurants or hotels. For each of these components, measures are adopted to aim for more frugality in the use of water.

Water consumed by the assets in operation and during development comes exclusively from the municipal water networks. According to the Beta Aqueduct map on the level of water stress in the regions (WRI), respectively 21.7% and 9.5% of the water scope are located in high and very high risk areas, i.e. 21% and 14.4% of reported water consumption (breakdown by portfolio in 3.7.1). However, Covivio does not have to directly draw groundwater. On construction sites, water consumption is also monitored and measures are put in place to reduce it in the context of environmental certifications (3.3.1.3).

3.3.2.4.1 Launch of the Ecowater programme

A building consumes water during its construction (concrete, cleaning, etc.) and then during the period of its operation (cleaning, watering of green areas, company restaurant, etc.). The Covivio group is stepping up its efforts to reduce water consumption in all its offices in France with its "Ecowater" programme ⁽¹⁾. This programme aims to reduce water consumption in its office buildings. The project is intended to be replicated across the entire office portfolio in Europe. This programme structures and develops actions around four pillars: economical consumption on a daily basis; leak detection; real-time management and mobilisation of the ecosystem. This programme aims to exceed the objective of the government Water Plan of reducing water withdrawals by 10% by 2030.

Efficient consumption on a daily basis

Covivio focused on the two main areas of consumption: sanitary facilities and catering areas, in order to equip them with hydro-economical equipment, such as aerators and flow limiters, energy-saving toilets, and taps with detection technology, with the objective of increasing the amount of equipment with these devices to 80% by the end of 2024, compared to 65% today. Covivio also aims to increase the number of water recovery systems installed by the end of 2024, allowing the recovered water to be used for the irrigation of green spaces, as well as for the operation of a double sanitary network in buildings.

Leak detection

By the end of 2024, Covivio aims to equip 100% of its multi-tenant buildings with a leak detection process and/or equipment to limit leaks, namely: the implementation of regular monitoring of the risk of leaks, the installation of digital control tools that continuously monitor the building's consumption profile and alert in the event of excessive consumption.

Real-time monitoring of consumption

Covivio takes advantage of Technical Building Management (BMS) to analyse data on water consumption in real time and integrate them into the building's overall energy management system. Covivio is currently finalising the interfacing of the Powerbat tool, a web portal to simplify the detailed access of buildings' consumption, with the monitoring platforms of water operators for all its multi-tenant offices and also with the BMSs present on premises.

A mobilised ecosystem

In addition to concrete actions in terms of equipment and monitoring, Covivio is also focusing on raising awareness and getting building occupants involved. The Group has thus put in place a charter on good water management and the right actions to adopt, specific "in situ" communication and, from 2024, awareness-raising actions directly on its buildings, in addition to the CSR committees.

Rainwater harvesting: the case of Symbiosis D

Covivio is continuing the development of the Symbiosis programme in Milan with the construction of two new buildings, and in particular the future Moncler headquarters in Milan. Upstream, work has started on restoring the pre-existing industrial structures, namely a chimney and a water tower. To do this, Covivio called on the expertise of Lorenzo Jurina, a civil engineer, professor at Politecnico di Milano and an expert in the renovation of historic buildings. The objective was not only to preserve these historical elements, but also to reuse them, giving them new life and new functions. The water tower will serve as a rainwater collector that will be used for the maintenance of the garden and green spaces, while the chimney will capture the air that will be used to cool the interior spaces of the new office buildings.

3.3.2.4.2 Main indicators at Group level

The figures below are calculated using the tables presented in 3.7.1.

Reporting scope: 2,815,490 m ²

Total water consumption: 2,832,656 m ³

Water intensity of assets: 1.01 m ³ /m ³

For this indicator, Covivio has opted not to use a performance target, in particular given the floor reached for France Offices (around 0.40m3/m ² /year) and Hotels in Europe (around 1.5m ³ /m ² /year). It should be noted that the growing presence of green spaces in buildings leads to an increase in water consumption on sites where recovery cannot be implemented or is not sufficient. In 2021, water consumption increased overall in the portfolio due to a resumption of activity but remained at levels close to those observed in previous years and below the target thresholds.

⁽¹⁾ https://www.youtube.com/watch?v=yq30jxEQ8tg.

3.3.2.4.3 Change in the water consumption of the various portfolios

In 2023, water consumption was stable overall for office assets and down for the hotel portfolio despite an increase in footfall this year. This decrease is linked to the various actions carried out for several years by operators: leak detection, monitoring of water-proofing, water-saving equipment, etc.

Targets and changes in water consumption for the various portfolios (in m3/m2)

Change in water consumption on a like-for-like basis for the portfolios (in m ³ /m ³ )

France Offices

Italy Offices

Germany Offices

Germany Residential

Hotels in Europe

3.3.2.5 Waste transition

Collecting data on waste removal is made difficult by the lack of weighing in most of the countries where Covivio operates: the concession operators appointed by the municipalities do not provide any quantitative data. The information available concerns buildings for which a private service provider has been appointed to collect paper, cardboard, confidential paper and other non-hazardous industrial waste. In the absence of information on the weight of waste collected, Covivio has systematically implemented selective waste collection (100% of selective collection in 2022 and 2023).

Covivio has also set itself the target of reducing waste production by 15% between 2019 and 2030 on its direct management portfolio. Private companies are responsible for waste removal on certain sites, making it possible to monitor waste by tonnage, by type and the percentage of waste recycled (3.7.1). Also, development and renovation operations are subject to rigorous control for the treatment of waste. Dedicated procedures are therefore put in place on construction sites to ensure recycling in accordance with the "Low Pollution Construction Site" charters put in place for the environmental certification of development projects.

Covivio employs waste managers in Germany for a number of its housing buildings, working with tenants to raise awareness of recycling and improve waste sorting. These measures resulted in a reduction in the number of collection containers. As part of the implementation of the European taxonomy for the construction activity, Covivio Immobilien initiated an initial test on a project to automate the reporting of construction site waste and ensure a recovery target of more than 70%. Other initiatives have also been launched for the portfolio, particularly in terms of the circular economy (3.3.1.3) and the fight against food waste. According to the initial results obtained from Italian construction sites, the recycling and recovery rate is more than 90% on the assets under development and a target of at least 75% is set for developments in progress.

Summary of consolidated environmental reporting for three projects delivered or underway in 2023 (Paris Madrid, Levallois Alis, So Pop, Paris Monceau, Dassault Bois)

Office space (in m ² floor space)	65,561 m ²
Energy consumed	1,716 MWh
Water consumed on site	7,646 m ³

Waste reporting at end of construction site	Of which % recycled/reused	Of which % incinerated for energy recovery	Of which % sent to landfill/waste disposal facility	Of which % managed by the local authority	Total
Non-hazardous waste - (NHW)	85.5%	4.9%	9.5%	0.0%	2,695.1 tonnes
Green waste	-	-	-	-	0 tonnes
Non-hazardous waste - Steel	99.9%	0.1%	-	-	138.8 tonnes
Inert waste	97.2%	1.5%	1.3%	-	463.8 tonnes
Wood waste	60.4%	39.3%	-	-	508.2 tonnes
Cardboard waste	98.5%	-	-	-	133.2 tonnes
Total non-hazardous waste	82.7%	10.1%	7.1%	0.0%	3,939.1 tonnes
Hazardous waste					15.5 tonnes

3.3.3 Regulatory compliance and environmental safety issues

The "Security/environmental safety/regulatory compliance" risk has been identified as a top priority considering Covivio's operations. Security flaws in buildings or a lack of asset resilience might make Covivio unable to manage major crises that may result in a loss, accident, health risk or liability. Covivio implemented suitable procedures and indicators for its operations in Europe to deal with this risk several years ago. Health and environmental risks are monitored and managed on a daily basis through effective tools and dedicated teams, going beyond regulatory requirements. Underlying this risk, the issue of the portfolio's climate resilience is key and requires long-term thinking, in line with the Group's strategy.

Three factors must be considered to assess the regions' vulnerability, i.e. regional interdependence, demographic growth and urbanisation and the many climate change challenges facing the regions under consideration.

The issue of urban resilience is relevant on various regional levels, namely buildings/blocks/neighbourhoods/cities/regions. A region is resilient provided that each one of its parts is strongly committed to such resilience, by providing the best solutions in terms of eco-design, accessibility, circulation, biodiversity, biomimetics, management of networks (energy, wastewater and rainwater) and communication systems.

Covivio's response to the challenges of resilience is to reduce its environmental impact and adapt to climate change by anticipating its consequences. For the eco-design of its buildings in Europe, Covivio makes every effort to opt for low-carbon building solutions (materials, systems), to insulate its buildings and protect them with awnings/blinds/high performance glazing/green roofs and façades, to enhance the night-time cooling effect, etc. Resilience can also be improved by changing the conditions of use of the building, thanks to the involvement of users in development decisions, the implementation of a public transport policy, teleworking, the organisation of employee schedules, videoconferencing, Green IT solutions, etc. Covivio uses these various solutions in its own facilities and promotes them to its stakeholders.

Lastly, managing and optimising the building facilities is based on striking the right balance between control over operating expenses and the occupant's health and comfort. These challenges have taken on particular importance with the international health crisis. Covivio immediately adopted strong measures in its buildings in operation and in its own premises; similarly, tenants have taken measures to protect their employees and customers, such as for example the Accor Group, which launched the "Allsafe" ⁽¹⁾ label with Bureau Veritas to guarantee cleanliness and compliance with hygiene measures in its hotels. In order to assess the capacity of buildings to withstand the consequences of climate change, Covivio had two emblematic assets in the portfolio stress-tested in 2019 and 2020. Through several adaptation scenarios, the buildings were screened against a list of climate hazards, depending on the location of the site and its main characteristics. This study resulted in several recommendations and an assessment of the potential impact on rental value depending on the adaptation scenario adopted.

The diagram below illustrates the main challenges of resilience and a few examples of performance drivers implemented.

RESILIENCY ISSUES

Strengthen the integration of CSR criteria during acquisitions

In 2022, Covivio decided to change the environmental criteria analysed during its asset acquisitions. A standard grid has been established. In addition to the traditional environmental risks (flooding, ICPE, asbestos, etc.) and the elements contributing to the building's performance (consumption of fluids, certifications and labels, etc.), this grid makes it possible to ensure that the current energy and carbon performance of the asset, or at least its potential, is in line with the objectives set by Covivio for 2030, and with the criteria of the European taxonomy. The grid also makes it possible to ensure control of a certain number of other CSR issues, such as biodiversity or adaptation to climate change (soil quality, drought, sea level rise, etc.).

⁽¹⁾ https://group.accor.com/en/Actualites/2020/05/allsafe-cleanliness-prevention-label

3.3.3.1 Adapting to the consequences of climate change

In addition to compliance with the local regulations (e.g. in France: ERP - Inventory of risks and pollution), Covivio has identified the main uncertainties which could impact its activities and put in place prevention and adaptation measures which are described in the following diagram. The TCFD reporting presented in the introduction to this chapter also provides an overview of the strategy implemented by Covivio to address the consequences of climate change.

ADAPTATION AND PREVENTION MEASURES

In 2020 Covivio tested the PREDICT model developed by EY in order to better assess the exposure of the portfolio of buildings to climate change. This study covered all commercial assets included in the 2019 environmental reporting, with two objectives:

―	measure the share of assets directly affected by certain climate change risks;
―	equip and protect the Group's buildings to cope with this.

Based on the IPCC scenarios, the model made it possible to determine that, on average, Covivio's portfolio should face an average increase in temperature over the period 2015-2050 compared to the period 2005-2014 of 0.8 degrees (scenario SSP3-7.0, intermediate). Over the same period, 14% of the assets analysed (in surface area) should face an increase of more than one degree. The model also addresses two major hazards given the location of the Group's assets: heat waves (five consecutive days at a temperature five degrees higher than the historical average) and intense precipitation (over 20 mm/m2/day). Also calculated on the basis of the SSP3-7.0 scenario of the IPCC, 29% of the assets analysed could face a heat wave of 20 days (13% in the event of a heat wave lasting 25 days), and 13% could experience ten days of intense precipitation on average per year.

In addition, in 2019 Covivio conducted an internal risk mapping exercise to visualise a sea-level rise of more than a metre, in order to identify which assets might be affected by such a risk. The results of the mapping indicated a very low risk, at 2% of the assets analysed across all the commercial portfolios and a representative sample for the German Residential portfolio (SASB 450a.1).

3.3.3.2 Fighting urban sprawl and land take

Covivio strives to avoid urban sprawl by integrating its developments within redevelopment projects that encourage, "rebuilding the city on the city". The economical use of land reflects the Group's determination to limit land sealing, avoid the use of agricultural land for new buildings, and take flood risks into consideration. Throughout Europe, the projects completed by the Group meet this requirement allowing for effective participation in protecting areas with high biodiversity potential.

In all the countries where Covivio operates, a regulatory environment is developing in this respect, in particular by requiring the completion of preliminary studies on soil sealing. In Milan, for example, the new Territorial Plan, which came into force in 2020 and mainly aims to impose carbon neutrality on all new buildings, provides for the calculation of an indicator to reduce the climate impact. This indicator is obtained by comparing the planted areas to the artificial areas and makes it possible to determine the minimum permeability threshold for the future project. The objective is to enhance open-earth areas and combat the artificialisation of soils by encouraging real estate players to take this factor into account from the design stage.

In 2017, Covivio added a "polluted sites and ground" module to the Provexi platform dedicated to asset risk management in France. This module provides a complete overview of all the information in the assessments by summarising the topics analysed (identifying potential sources of pollution, summary of the completed analyses). Employees can access all of this information, as well as interactive data maps. Sites on which special monitoring may be necessary are identified, and management of the required actions is simplified.

Anticipating changes in regulations and aware of its environmental impact, the Group is keen to move towards projects with "net zero reallocation of natural land to urbanisation", with a significant portion of its operations (51% of ongoing France Offices operations) consisting of refurbishments and upward extension projects.

3.3.3.3 Managing health and environmental risks

In 2023, as in 2022, Covivio was not subject to any proceedings that ordered it to clean up or remove pollution from any of its sites in operation, nor was it subject to any court ruling for non-compliance with environmental regulations.

As a precautionary measure, Covivio decided several years ago to allocate a provision of €1.3 million, to cover any potential clean-up costs for a site owned in conjunction with a non-strategic activity.

Anticipating changes in regulations and aware of its environmental impact, the Group is keen to move towards projects with "net zero reallocation of natural land to urbanisation", with a significant portion of its operations (51% of ongoing France Offices operations) consisting of refurbishments and upward extension projects.

During disposals and acquisitions, the Environment Department, which reports to Covivio's French Technical Department, scrutinises all environmental issues likely to affect the value or liquidity of the asset: asbestos, soil pollution, energy performance, exposure to natural or technological risks, classified facilities, etc. An analysis of the available documentation is carried out during the due diligence phase, in order to obtain the necessary guarantees during acquisitions or to answer questions from buyers during disposals. Environmental risks are thus assessed upon review of this documentation, supplemented if necessary by additional investigations, and their short- or long-term impacts estimated, to enable an assessment of the costs that may arise from remediation.

3.3.3.3.1 Regulatory compliance

Property acquisition and management require certain assessments which may be mandatory depending on the date of construction of a building. These assessments cover asbestos, pest status depending on the municipality (termites etc.), an inventory of risks and pollution, mining and technological risks status (including flood risks, mudslides, coastal submersion and Seveso risks), etc. In France, Covivio's Environment Department oversees compliance with the regulations on structures classified for environmental protection (ICPE). Some risks may also be subject to additional testing (soil pollution, etc.) or periodic monitoring (asbestos, for example). Comparable regulations are also in place in both Italy and Germany. For each one of its locations, Covivio relies on dedicated environmental safety teams to ensure that the required assessments are carried out and monitored. The team is involved in the analysis of acquisitions, during the management period, and in the creation of data rooms in anticipation of a sale.

As an example, the table below outlines the risks considered relevant to Covivio's Offices segment in France and Italy.

Number of sites involved	France		Italy
Risks	2022	2023	2022	2023
Subsidence	17	17	0	0
Earthquake	1	1	94	84
Flood	24	18	1	1
Thermal effect	0	0	0	0
Storm surge	0	0	0	0
Toxic effect	0	0	0	0
Drought	4	3	0	0
Avalanche	0	0	0	0
Forest fires	1	1	0	0
Exceptional precipitation ^*	N/A	N/A	94	84
Cyclone	0	0	0	0
Rise in groundwater levels	0	0	10	10
Volcano	0	0	0	0
Mining	0	0	0	0
Other mining risks ^**	0	0	N/A	N/A
Other natural risks ^**	15	13	N/A	N/A

^* Definition in line with Italian regulations, outside the scope of the inventory of risks and pollution in France.

^** Definition in line with French regulations, excluding Italian scope.

	Diagnostics implemented
France scope	2022		2023
Inventory of risks and pollution - number of cases examined ⁽¹⁾	110	100%	89	100%
Cooling towers - number of sites involved ⁽²⁾	0	^_	0	^_

⁽¹⁾ Inventory of established risks.

⁽²⁾ Sites where the tower's operator is the owner.

In Germany and Italy, Covivio's technical teams use internal tools to monitor the risks to which buildings are exposed.

In Germany, particular attention is paid to the consideration of health and environmental risks as well as mining risks (195 residential sites are located in an area considered at risk by the authorities). In addition, following an analysis conducted by Covivio's insurance company in Germany, the risk of flooding was considered negligible for the portfolio as a whole. In accordance with legislation, smoke detectors were installed in residential units in North Rhine-Westphalia, Hamburg and Berlin. In addition, carbon monoxide detectors have been installed in all gas-heated apartments. In addition, the due diligence process systematically includes technical studies and an in-depth study of the available documentation on health and environmental aspects. When acquiring buildings, future investments required for greening are taken into account. No office site is considered to be at risk with regard to the main environmental and health risks identified in the table.

In Italy, environmental risks are monitored by the Property Management Department. All due diligence in the acquisition phase now includes a sustainable development chapter to cover the main environmental risks concerning the asset: biodiversity, adaptation to climate change, energy efficiency, floods, health and well-being, transport, management of water and waste, etc.

For buildings owned by Covivio Hotels, health risks and environmental safety are monitored by the Environment Department. Investigations covering topics such as asbestos and ground pollution are carried out when buildings are either purchased or sold. The leases of Covivio's hotels systematically stipulate that the tenant retains control of and responsibility for environmental risks, and that the user or the site manager is responsible for the premises' compliance with regulations governing environmental risks.

3.3.3.3.2 Limiting noise pollution

Noise can cause stress and is harmful to concentration and creativity. It is an obstacle to productivity. User comfort and well-being is a central concern for Covivio as we strive to develop buildings that provide optimum acoustic conditions for occupants (choice of materials, décor, space layout, etc.) against a backdrop of increasing demand for flexible premises. As part of its development and renovation projects, Covivio also makes every effort to reduce the exposure of tenants and local residents to noise pollution from construction sites.

3.3.3.3.3 Indoor air quality, a health issue

Air quality is a growing public health challenge as fine particle pollution alone, generated by human activities, is said to be responsible for 48,000 deaths in France each year ⁽¹⁾. In addition, the harmful effects on health caused by this pollution annually are thought to cost between €20 and €30 billion ⁽²⁾. Regulations are gradually becoming more stringent across Europe, especially with regard to transport and buildings. Indoor air quality (IAQ) in buildings is linked to various factors such as embellishments (carpets, paints, materials, etc.), equipment inside the premises (e.g. printers), external environment or maintenance of heating and air conditioning systems.

It is to meet these challenges that Covivio, EDF and the Impulse Partners incubator decided, in 2019, to join forces to conduct the "Air Quality Challenge" call for projects. Octopus Lab and Enerbrain were winners of this initiative, whose objective was to identify innovative solutions to improve indoor air quality while reducing energy consumption. In France, after a test period in two buildings, Covivio deployed the Octopus Lab system in 10 multi-tenant buildings under direct management; this solution makes it possible, using sensors, to monitor the air quality in real time, to identify any deviations in order to correct them, while controlling the energy consumption expenditure inherent in air renewal.

In the absence of regulatory obligations, Covivio conducts annual studies of the quality of the air in most of its multi-tenant buildings in France. These studies are focused on the microbiological parameters of the air (germs, flora and mould among others), and may include physical parameters (including humidity, volatile organic compounds [VOCs] and CO ₂ ). As part of its development and renovation operations, Covivio uses materials and products (paints, carpets, etc.) that are low in volatile organic compound emissions (class A+), in order to preserve the comfort and health of the persons working on construction sites as well as occupants of its buildings. The specifications for Covivio's various business activities have factored in these issues.

In Italy, a one-year trial was carried out of the air quality of Covivio's head office in Milan. It was preceded by a survey of employees to question them on their feelings before the installation of five measuring units in the Offices. This measure did not reveal any particular non-compliance.

⁽¹⁾ 2016 report "Impact of chronic exposure to fine particles on mortality in mainland France and analysis of health benefits associated with various scenarios for reducing atmospheric pollution" - Public Health France.

⁽²⁾ Report of the Audit and Environmental Economics Committee. Health and quality of outdoor air. MEDDE SEEIDD, June 2012.

3.3.4 Contribute to the implementation of sustainable finance

Finance can be described as sustainable when it takes into account ESG criteria (Environment, Social, Governance); it brings together socially responsible investment (SRI), ethical finance and green finance ⁽¹⁾. Investors are increasingly taking ESG criteria into account in their analysis and investment choices. Covivio regularly organises "road shows" focusing on financial and ESG topics, or even exclusively ESG.

Sustainable finance is a necessary lever to boost the transition to a carbon-neutral economy likely to limit global warming. In Europe, the "Financing sustainable growth" action plan aims to provide a major boost to promote responsible investment. The first of the ten measures identified is the creation of a European Taxonomy ("EU Taxonomy"), whose objective is to provide a framework for the market for "green" or "sustainable" financial products and to guide investments towards those activities which are compatible with European objectives for the ecological transition.

3.3.4.1 What is compliance with the European "green" taxonomy?

The "green" taxonomy is intended to become the foundation on which future European Regulations on sustainable investment will be based. The European Commission has set six major environmental objectives (detailed in the summary table below), and lists the activities that can make a positive contribution while not detracting from the achievement of the other objectives (Do No Significant Harm) and by respecting minimum guarantees on social and human rights issues. For each activity thus identified, technical criteria must be met to claim that revenue, Capex or Opex are aligned in relation to each objective. To comply with the regulations, Covivio has followed the following requirements over the last three years (as of 31/12/ N published in N+1):

Year	Targeted objectives	Reporting obligation (Revenue, Capex, Opex ⁽²⁾ )	Activities identified for Covivio
2021	Climate objectives:	Eligibility rate	Real estate activities:
	• Climate change mitigation		• Construction of new buildings (development) - 7.1
	• Climate change adaptation		• Renovation of existing buildings - 7.2
			• Installation, maintenance and repair:
			• Equipment promoting energy efficiency - 7.3
			• Of instruments and devices for measuring, regulating and controlling the energy performance of buildings - 7.4
			• Charging stations for electric vehicles inside buildings - 7.5
			• Renewable energy technologies - 7.6
			• Acquisition and ownership of buildings - 7.7
			• Specialised services related to the energy performance of buildings - 9.3
2022	Climate targets	Eligibility and alignment rate:	Real estate activities
		• Verification of substantial contribution criteria
		• Do No Significant Harm
		• Minimum guarantees
2023	Climate objectives +	Climate objectives:	• Real estate activities +
	• Sustainable use and protection of water and marine resources	• Eligibility and alignment rates	• Hotels, tourist accommodation, campsites and similar accommodation - Biodiversity 2.1
	• Transition to a circular economy	4 other objectives:	• Construction of new buildings ^* - Circular economy 3.1
	• Pollution prevention and control	• Eligibility rate	• Renovation of existing buildings ^* - Circular economy 3.2
	• Protection and restoration of biodiversity and ecosystems		• Demolition and dismantling of buildings and other structures -Circular economy 3.3
			• Activities already included in the climate objectives
2024 (to come)	All objectives	Eligibility and alignment rates	Activities mentioned above and potential integration of new activities

⁽¹⁾ https://www.novethic.fr/decryptages-dexpert/tout-savoir-sur-la-finance-durable :~:text=La%20finance%20durable%20d%C3%A9signe%20des,vers%20une%20%C3%A9conomie%20plus%20durable.

⁽²⁾ Given the small share of Opex falling within the scope of the taxonomy compared to the Group's total Opex (less than 10%), this indicator is considered non-material.

Focus on the hotel business as part of the objective of protecting and restoring biodiversity and ecosystems

The Delegated Act ⁽¹⁾ on the other four environmental objectives, including the protection of biodiversity, was published in June 2023. It introduces the hotel business within the scope of the taxonomy. For Covivio, this means that the revenue generated by its hotels in operation is eligible for the taxonomy. The alignment calculation, required for the 2024 fiscal year, will require compliance with five technical conditions, which themselves include detailed sub-criteria:

―	contribution to conservation or restoration activities;
―	action plan to contribute to nature conservation;
―	sustainable supply chain and environmental management system;
―	minimum requirements to qualify the performance;
―	audit of the above information.

In 2023, Covivio initiated the first analysis of these criteria in order to gather information on its Hotel Operating properties from 2024 and be in a position to publish the first information in 2025.

The taxonomy requires the use of 100% gross revenue, calculated in accordance with IFRS. However, in order to allow for more comparable monitoring from year to year and to get closer to the operational reality, Covivio has also established an operational definition of taxonomy indicators. This definition is based this year solely on the climate objectives before the full application of the four environmental objectives planned for next year. It is calculated on net rental income Group Share and EBITDA for the Flex Office (Wellio) activity and hotels under management. The calculation of the alignment rate according to this operational definition uses only eligible activities in the denominator. The analysis carried out at Group level shows the following results:

Eligibility of revenue and Capex

At the end of 2023, the portion of Covivio's revenue eligible for taxonomy was 97.4% (according to the official definition using gross revenue), an increase compared to 2023 due to the integration of revenue from hotels under management and the flex office business, which are eligible under the biodiversity objective. Using the above-mentioned operational definition, the eligible portion of revenue is 92%, including the Group Share of net rental income, EBITDA and considering only the currently mandatory climate objectives. Given Covivio's activity, 100% of its Capex relate to real estate activities and are therefore eligible, including Capex relating to non-eligible activities (Flex Office and hotels under management) given that they are linked to real estate assets held by Covivio.

Revenue alignment - What is a green building according to the taxonomy?

Almost all of Covivio's eligible revenue is generated by property acquisition and ownership (7.7). The revenues it generates can only be considered green for the purposes of climate change mitigation.

Three criteria can be taken into account for an asset generating revenue that can be considered as green:

1. Belonging to the regional top 15% in terms of primary energy consumption: Covivio relies here on the studies available to date and carried out at the national or European level, namely the OID ⁽²⁾ in France and the ESG Index Deepki ⁽³⁾ for other countries.

2. Class A energy performance diagnostic (or B for Italy and France in view of the breakdown of the diagnostics on these countries ⁽⁴⁾ [source ZEBRA]).

3. For buildings for which the building permit was issued after 31 December 2020, achievement of the NZEB -10% threshold: in France, this is equivalent to RT2012 -10% or RE2020 depending on the dates of the building permit.

In addition, there are other substantial contribution requirements: buildings larger than 5,000 m ² must also be equipped with a BMS (Technical Building Management) and new non-residential buildings must be equipped with a LCA (Life Cycle Analysis) and a thermal and airtightness study at the time of construction. Revenue from property development (development to sell on delivery, i.e. 1% of revenue) was also analysed in respect of activity 7.1 - Construction of real estate assets with NZEB -10% criterion of substantial contribution taking into account the DNSH related to this activity. More at the margin, revenues from photovoltaic production (less than 0.1% of revenue) have been integrated and are considered by type as aligned under activity 4.1 - Production of electricity via solar photovoltaic.

By focusing on the operational definition of alignment (see above), Covivio's revenue alignment rate has thus been achieved: 35.6% at the end of 2023 and 24.2% based on the regulatory definition. The overall rate is up this year, thanks in particular to an improvement in data collection, mainly on German Residential and the hotel portfolio. The impact of the change in the top 15% and top 30% thresholds is offset at Group level but has led to significant variations in the France Offices and Hotels portfolio (up to a 20% change in threshold for certain asset classes). The asset-level analysis conducted to implement the taxonomy indicators made it possible to identify rapid improvement levers for certain assets. Some assets may also meet the alignment conditions following the investments implemented as part of the Group's carbon trajectory (3.3). In addition, the improvement of the data collection process at the site level (waste recovery rate, energy labels of equipment, water flows of sanitary facilities) is a lever identified to refine the calculations for the property development business..

⁽¹⁾ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ%3AL_202302486

⁽²⁾ https://resources.taloen.fr/resources/documents/9051_Taxinomie_OID__02.pdf

⁽³⁾ https://index-esg.com/.

⁽⁴⁾ https://zebra-monitoring.enerdata.net/

Capex alignment - What is green Capex, according to taxonomy?

Unlike revenue, Capex can be green either for mitigation or for adaptation to climate change. It should be noted that while a Capex is green for mitigation, it is in fact green for adaptation, taking into account the criteria of substantial contribution and DNSH for the activities identified. This is linked to the fact that for the real estate activities, the DNSH Adaptation for the mitigation objective is identical to the criterion of substantial contribution for the adaptation objective. The following table details the criteria for a definition of green Capex according to its type and the activity to which it relates.

	Acquisition and construction (all Capex related to assets, regardless of the type of Capex, including developments)	Renovation of existing buildings (additional DNSH: water, pollution, circular economy)	Green Capex by type
Mitigation	Compliance with the definition of a green building (above)	30% gain in primary energy compared to the initial state	Installation, maintenance and repair of energy efficiency equipment (in accordance with the highest standards), charging stations for electric vehicles, energy performance management systems or renewable energy production equipment
Adaptation	Belonging to the Top 30% or DPE CNZEB for new buildings	Compliance with thermal renovation regulations

At the end of 2023, 73% of Covivio's Capex was thus aligned within the meaning of the taxonomy (75% on the operational scope) with regard to the adaptation objective ⁽¹⁾. This rate is slightly down compared to 2022 due to the decrease in the relative share of developments in total Capex. Thanks to significant information reporting work, Covivio identified around €28 million in energy efficiency Capex (vs. €17 million), i.e. 5.7% of total Capex.

Climate analysis

As a substantial contribution criterion for Capex for the adaptation objective or DNSH for the mitigation objective, the completion of a climate risk analysis is mandatory in all cases in order to qualify a green activity. To meet this requirement, Covivio relied on the MSCI Climate Value At-Risk study carried out since 2020 at the asset level (3.3). In order to use a worst-case scenario, as required by the Taxonomy regulation, Covivio used the RCP8.5 scenario for this analysis of physical risks.

Compliance with minimum safeguards

Covivio worked with a third party to study the compliance of its procedures and policies in place in terms of minimum safeguards. The minimum safeguards referred to in Article 3 (c) of the Taxonomy regulation are procedures that a company implements to align with the OECD Guidelines for Multinational Enterprises and the United Nations Guidelines on business and human rights. These include the principles and rights set by the eight fundamental conventions mentioned in the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, and by the International Bill of Human Rights. The analysis conducted by Covivio was based on these guiding principles as well as the documents already published and the commitments made by the Group: Group Ethics Charter and internal procedures, Universal Registration Document, Communication on Progress of the Global Compact, Diversity Charter, Responsible Procurement Charter, etc. No points of attention were revealed following this analysis with regard to the following 10 points of study: Human rights policy; Mapping of human rights and due diligence risks; Prevention and mitigation actions and monitoring of their implementation; Whistleblowing mechanism; Communication; Consumer interests; Anti-corruption; Competition; Taxation; Media analysis (study of controversies).

Summary table of taxonomic indicators at 31 December 2023

	Share of REV/REV		Share of Capex/Capex
	Aligned	Eligible	Aligned	Eligible
Climate change mitigation	24.2%	74.5%	68.6%	100%
Climate change adaptation	0%	0%	73.3%	100%
Aquatic and marine resources	Not required in 2023	0%	Not required in 2023	0%
Circular economy		0.6%
Pollution		0%		0%
Biodiversity and ecosystems		22.9%		0%
TOTAL Regulatory definition	24.2%	97.4%	73.3%	100%
TOTAL Operational definition (Net rental income and EBITDA)	35.6% (/climate eligible activities)	92% (climate)	75.4%	100%

All the results are presented in Section 3.7.3 in the dedicated tables.

The results for Covivio's subsidiaries are as follows:

―	Covivio Immobilien: revenue: 32.8% aligned (100% eligible)/Capex: 45.1% aligned (100% eligible);
―	Covivio Hotels: revenue: 11.7% aligned (100% eligible)/Capex: 56.4% aligned (100% eligible).

⁽¹⁾ 57% with regard to the mitigation target.

Actions and indicators implemented with regard to the three compliance conditions of the taxonomy

Three conditions to respect	Examples of Covivio actions	Chapter	Indicators monitored
The activity must contribute substantially to one of the six environmental objectives, detailed below
1. Climate change mitigation	Construction and renovation of certified buildings with high levels of environmental performance	3.3.1.3	Rate of certification
	European LCA specifications to make LCAs more comparable Installation of high-performance equipment and materials (HVAC, façades, insulation, etc.)		Multi-year works plan
	Installation of terminals or spaces for electric vehicles on new projects
	Reporting on environmental risks
	Annual reporting and target to reduce the fleet's energy consumption Carbon trajectory	3.3.2.2	Energy intensity
			Carbon intensity and SBTi carbon trajectory
	Raising tenant awareness and environmental certification of assets in operation	3.3.1.1	EPC levels
2. Climate change adaptation	Gradual adaptation of the portfolio through the delivery of buildings to the highest standards and energy renovation of the portfolio	3.3.1.3	Rate of certification
			Multi-year works plan
	Monitoring of environmental risks and work on the resilience of assets	3.3.3	Percentage of sites monitored for environmental risks
	Deployment of a supervisory system and generalisation of BMS on assets
	Environmental due diligence for acquisitions
3. Sustainable use and protection of water and resources	Water consumption	3.3.2.4	Water intensity of assets
	Own site charters for certified projects
4. Protection and restoration of biodiversity and ecosystems	Biodiversity Charters for construction and operation, biodiversity mapping, etc.	3.4.1.4	Percentage of sites analysed
			Biodiversity-certified surface area
5. Pollution prevention and control	Reporting on environmental risks	3.3.3	Percentage of sites monitored for health and environmental risks
	Specific procedures on construction sites for the treatment of pollution
6. Transition to a circular economy	Works on the circular economy	3.3.2.1	Rate of certification
	HQE Performance programme
	Reuse of materials
Comply with performance criteria or standards and regulations	Use of certifications and labels for buildings and/or operations	3.3.1.3	Monitoring of certifications
	Low-carbon construction - ACV	3.3.2.3.4	SBTi approved carbon trajectory
	Analysis of the dimensioning of equipment/installations	3.3.2.1	Technical studies site phase
	Compliance with recognised international standards for both financial and extra-financial aspects	3.7	EPRA sBPR/TCFD/GRI/ SASB
	Choice of location	3.4.1.5	Site phase studies
	Targeted resilience studies	3.3.3.1	Climate Value-a-risk
	Regulatory watch	3.7.3
The company must respect the minimum social safeguards: compliance with the eight "fundamental conventions" of the International Labour Organization
The eight fundamental conventions are as follows:
The Freedom of Association and Protection of the Right to Organise, Convention no 87, 1948	As a signatory of the Diversity Charter and the Global Compact in which it reaches the GC Advanced level (Global Compact - advanced level), Covivio strives to observe the eight fundamental conventions of the ILO, and to ensure that its suppliers comply with them	3.5.1	Publication of an annual Communication on Progress (COP) on the website of the Global Compact
		3.7.3
Right to Organise and Collective Bargaining, Convention no 98, 1949
Forced Labour Convention no 29, 1930 + its protocol of 2014
Abolition of Forced Labour, Convention, no 105, 1957
Minimum Age, Convention, no 138, 1973
Worst Forms of Child Labour, Convention no 182, 1999
Equal Remuneration, Convention no 100, 1951
Discrimination (Employment and Occupation), Convention no 111, 1958

3.3.4.2 Financing indexed to ESG criteria

A pioneer in the issuance of green bonds since 2016, Covivio passed a key milestone in aligning its financing policy with its ESG goals by launching the conversion of a number of bond tranches issued by Covivio into green bonds. This gave a portfolio of 100% green bonds for Covivio (€3.5 billion) and Covivio Hotels (€0.9 billion). In addition, Covivio signed nearly €1.2 billion in corporate credit lines incorporating criteria, i.e. a total of 57% of its total debt (vs 38% in 2022).

3.3.4.2.1 Covivio, a pioneer in the issuance of green bonds

As part of the new Sustainable Bond Framework published in 2022 for its offices activity, gradually integrating the criteria of the European Taxonomy and whose alignment with the Green Bond Principles and the Sustainability Linked Bond Principles (published by the International Capital Market Association) has been confirmed by Moody's ESG ⁽¹⁾ , assets eligible for Sustainable Bonds must:

1. have a minimum certification of HQE Excellent, BREEAM Excellent (Very good for assets already delivered), LEED Gold or DGNB Gold;

2. be located less than 500 meters from public transport;

3. have an annex or green clauses on leases in France and new leases in Italy and Germany.

At the end of 2023, the eligible portfolio was €6 billion (€5.3 billion external net financial debt already allocated), Covivio also financed €3.1 million in energy efficiency Capex in 2023 via this framework. This portfolio covers the €3.5 billion of bonds issued by Covivio.

Moody's ESG, in its Second Party Opinion, recognises the consistency of the Sustainable Bond Framework with Covivio's CSR strategy and objectives, and assigns a rating ["Robust"] to the contribution, expected impacts, and CSR risk management of the Framework covering Green Bonds. Covivio's key performance indicators and carbon footprint reduction targets received the best rating "Advanced", as did Covivio's overall CSR performance.

The success of these issues marks the recognition of Covivio's sustainable development strategy and has enabled Covivio to significantly expand the circle of players that finance it, with great diversity at the international level.

3.3.4.2.2 Covivio Hotels, an additional milestone in 2023

In order to align its financial policy with its ESG ambitions and confirm its pioneering role in the hotel industry, Covivio Hotels has become the first hotel real estate company in Europe to adopt a Green Financing Framework, with the commitment that its future bond issues are carried out in Green Bonds format. Under this Green Financing Framework, eligible assets in operation must meet at least one of the following criteria:

1. carbon intensity of the asset below the consumption threshold necessary to comply with the 1.5°C trajectory of the Paris Agreement as defined by the CRREM and validated by SBTi (Science Based Targets initiatives);

2. full alignment with the taxonomy for the acquisition and holding of real estate assets;

3. HQE certification "Excellent" / BREEAM "Excellent" / LEED or DGNB "Gold" or higher.

In line with its historical commitments, the assets must also be located less than 500 meters from public transport and the new leases must benefit from green clauses.

In addition, Covivio Hotels has provided for the possibility of including the financing of new buildings, refurbishments, the installation of renewable energy production equipment and energy efficiency work.

At end-2023, €3.9 billion (€2.9 billion external net financial debt already allocated) in hotel assets are already eligible for this Green Financing Framework. Covivio Hotels plans to increase this share, in particular through work to continuously improve the quality of its portfolio, and spent €4.6 billion of capex on energy-efficiency projects in 2023 as part of the Framework.

Moody's Investors Services, in its Second Party Opinion, recognised the quality of the Green Financing Framework by assigning it a "Very Good" SQS 2 rating, in line with the best ratings in the European real estate sector. The overall contribution of the Green Financing Framework to sustainable development is qualified as "Significant" and its alignment with the Green Loan/Bond Principles as "Best Practices".

⁽¹⁾ https://www.covivio.eu/wp-content/uploads/sites/6/2023/08/Covivio-Second-Party-Opinion-on-Green-Bonds.pdf

3.3.4.2.3 A proven performance

In addition to the checks carried out internally to ensure compliance with the eligibility criteria, Covivio has again called on Moody's ESG (formerly Vigeo-Eiris) to give a Second Party Opinion. Furthermore, to audit the correct allocation of funds in accordance with the principles laid down in the Green Bond Framework, as well as the environmental performance indicators, Covivio is committed to using an independent third party annually. The independent third-party audit report is published on Covivio's Internet site, as well as in this document in Chapters 3.8.2. and and 3.8.3. The indicators selected for the Green Bond and audited by the independent third-party are aligned with the GRI Standards indicators and the recommendations of the Green Bond Principles. They cover the portfolio reporting indicators (3.7.1.2):

Green bonds office portfolio impact indicators

The portfolio eligible for Covivio's Sustainable Financing Framework amounts to €6 billion (€5.3 billion external net financial debt already allocated). It is distributed geographically as follows: France (52%), Italy (33%), Germany (15%). With €4.2 billion in assets aligned with the climate change mitigation objective of the European taxonomy (mainly for the 7.7 and 7.2 asset ownership and renovation activities), Covivio can thus cover 100% of its issues (i.e. €3.5 billion) with aligned assets. It should be noted that for the sake of alignment with its reporting, Covivio only considers fully aligned assets (contribution criterion, DNSH and minimum guarantees) although its Framework only requires the criterion of substantial contribution.

Indicator	Performance
Breakdown of funds by category	67.6% Green Building/32.4% Energy performance
Breakdown of funds by type of financing	54.2% refinancing/45.8% financing
Total energy consumption and intensity (final energy)	90,179 MWhfe - 146 kWhfe/m ² /year
Total energy consumption and intensity (primary energy)	129,342 MWhpe - 210 kWhpe/m ² /year
Greenhouse gas emissions and intensity	7,537 tCO ₂ e - 12.2 kgCO ₂ e/m ² /year
Change in greenhouse gas emissions compared to period N-1 (like-for-like scope)	-7.4%, i.e. a gain of 354 tCO ₂ e/m ²
Greenhouse gas emissions avoided (compared to a benchmark intensity -IndexESG Deepki) ⁽¹⁾	4,366 tCO ₂ e
Total water consumption and intensity	273,531 m ³ - 0.45 m ³ /m ² /year
Waste generation and recycling rate	2,379 t - 40% Coverage rate: 58%
Accessibility of public transport	100% less than 500 meters from public transport
Rate of environmental certification	98.4%
Taxonomy alignment rate (climate change mitigation objective)	77%, i.e. €4.6 billion (€4.2 billion net), thus covering 100% of Covivio's green issues
Investments directly related to the improvement of the energy performance of the portfolio (activity 7.3 of the taxonomy)	€3.1 million

Green bonds Hotels portfolio impact indicators

The portfolio eligible for Covivio Hotels' Sustainable Financing Framework amounts to €3.9 billion (€2.9 billion external net financial debt already allocated). It is distributed geographically as follows: Germany (35%), France (34%), UK (8%), Italy (8%), other European countries (15%). With €1.3 billion (€900 million net) in assets aligned with the climate change mitigation objective of the European taxonomy (exclusively for activity 7.7 the acquisition and ownership of buildings), Covivio Hotels can thus cover 100% of its issues (i.e. €0.9 billion) with aligned assets (substantial contribution criterion, DNSH and minimum guarantees in accordance with the framework).

Indicator	Performance
Breakdown of funds by category	99.8% Green Building/0.2% Energy performance
Breakdown of funds by type of financing	99.8% refinancing/0.2% financing
Total energy consumption and intensity (final energy)	217,222 MWhfe - 173 kWhfe/m ² /year
Total energy consumption and intensity (primary energy)	321,949 MWhpe - 256 kWhpe/m ² /year
Greenhouse gas emissions and intensity	25,809 tCO ₂ e - 20.5 kgCO ₂ e/m ² /year
Change in greenhouse gas emissions compared to period N-1 (like-for-like scope)	-7.6%, i.e. a saving of 1,982 tCO ₂ e/m ²
Greenhouse gas emissions avoided (compared to a benchmark intensity - IndexESG Deepki)	17,182 tCO ₂ e
Total water consumption and intensity	1.6 million m ³ - 1.38 m ³ /m ² /year
Waste generation and recycling rate	1,781 t - 38% Coverage rate: 38%
Accessibility of public transport	100% less than 500 meters from public transport
Rate of environmental certification	96.6%
Taxonomy alignment rate (climate change mitigation objective)	32%, i.e. €1.3 billion (€900 million net), covering 100% of the amount of Covivio Hotels' green issues
Investments directly related to the improvement of the energy performance of the portfolio (activity 7.3 of the taxonomy)	€4.6 million

⁽¹⁾ This calculation of avoided emissions is provided for information purposes and is based on benchmarks established by third parties, for which Covivio is not responsible.

3.3.4.2.4 List of assets and compliance with criteria

Portfolio of assets selected - Offices (at 31 December 2023)

Name	City	Country	Classification 31/12/2023	Surface areas (100%) at 31/12/2023	Eligible category	Main certification criteria
FONTENAY-SOUS-BOIS LE FLORIA	FONTENAY-SOUS-BOIS	France	Delivered	9,175	Energy efficiency	Renovation > Excellent certification
LA DÉFENSE/CB 21	COURBEVOIE	France	Delivered	68,076	Green building	Operation > Very Good certification
ISSY-LES-MOULINEAUX/ ATLANTIS	ISSY-LES-MOULINEAUX	France	Delivered	11,461	Green building	Operation > Very Good certification
PARIS/ART&CO	PARIS	France	Delivered	13,599	Green building	Taxonomy
VÉLIZY/DASSAULT CAMPUS	VÉLIZY-VILLACOUBLAY	France	Delivered	56,193	Green building	Construction > Excellent certification
BOULOGNE/GRENIER	BOULOGNE-BILLANCOURT	France	Delivered	7,755	Green building	Taxonomy
MELUN/CHAUSSY	MELUN	France	Delivered	10,327	Green building	Taxonomy
LYON/SILEX 2	LYON	France	Delivered	31,050	Energy efficiency	Renovation > Excellent certification
LYON/SILEX 1	LYON	France	Delivered	10,648	Green building	Taxonomy
NANTES/TANNEURS	NANTES	France	Delivered	10,433	Green building	Taxonomy
LEVALLOIS-PERRET/ THAIS	LEVALLOIS-PERRET	France	Delivered	5,563	Energy efficiency	Renovation > Excellent certification
PARIS/GOBELINS	PARIS	France	Delivered	4,442	Energy efficiency	Renovation > Excellent certification
PARIS/CHERCHE-MIDI	PARIS	France	Delivered	3,510	Green building	Taxonomy
PARIS/STEEL	PARIS	France	Delivered	3,681	Energy efficiency	Renovation > Excellent certification
PARIS/RASPAIL	PARIS	France	Delivered	-	Green building	Taxonomy
BOULOGNE/MOLITOR	BOULOGNE-BILLANCOURT	France	Delivered	4,434	Green building	Taxonomy
LEVALLOIS-PERRET/PEREIRE	LEVALLOIS-PERRET	France	Delivered	7,864	Green building	Taxonomy
VÉLIZY/DASSAULT CAMPUS + EXTENSION	VÉLIZY-VILLACOUBLAY	France	Delivered	12,834	Green building	Taxonomy
VÉLIZY/NEW VÉLIZY	VÉLIZY-VILLACOUBLAY	France	Delivered	46,751	Green building	Construction > Excellent certification
MARSEILLE/EUROMED CALYPSO	MARSEILLE	France	Delivered	9,800	Green building	Taxonomy
CHARENTON/LIBERTÉ	CHARENTON-LE-PONT	France	Delivered	26,590	Green building	Taxonomy
ORLY/CDO ASKIA BUREAUX	ORLY	France	Delivered	17,892	Green building	Taxonomy
MONTROUGE/FLOW	MONTROUGE	France	Delivered	23,430	Green building	Taxonomy
PARIS/JEAN GOUJON	PARIS	France	Delivered	8,677	Energy efficiency	Renovation > Excellent certification
ORLY/CŒUR D'ORLY BELAÏA	ORLY	France	Delivered	23,868	Green building	Taxonomy
BORDEAUX/CITÉ NUMÉRIQUE	BEGLES	France	Delivered	18,462	Green building	Taxonomy
CHÂTILLON/IRO	CHÂTILLON	France	Delivered	25,626	Green building	Taxonomy
LEVALLOIS-PERRET/MASLO	LEVALLOIS-PERRET	France	Delivered	20,814	Energy efficiency	Renovation > Excellent certification
SAINT OUEN/SO POP	SAINT OUEN	France	Delivered	32,449	Green building	Taxonomy
VÉLIZY/EXTENSION	VÉLIZY-VILLACOUBLAY	France	Delivered	27,655	Green building	Taxonomy
PARIS/N2 BATIGNOLLES	PARIS	France	Delivered	9,985	Green building	Taxonomy
PARIS/MONCEAU	PARIS	France	In development	11,177	Energy efficiency	Renovation > Excellent certification
PARIS/MADRID - SAINT LAZARE	PARIS	France	In development	5,837	Energy efficiency	Renovation > Excellent certification
PARIS/GRANDS BOULEVARDS	PARIS	France	In development	7,346	Energy efficiency	Renovation > Excellent certification
PARIS/BOBILLOT	PARIS	France	In development	3,652	Green building	Construction > Excellent certification
MEUDON/VIBE	MEUDON-LA-FORÊT	France	In development	38,000	Green building	Construction > Excellent certification
Y2	FRANKFURT	Germany	Delivered	30,930	Green building	Taxonomy
OBERHAUSEN HQ	OBERHAUSEN	Germany	Delivered	12,945	Green building	Operation > Very Good certification
BERLIN HQ	BERLIN	Germany	Delivered	2,368	Green building	Operation > Very Good certification
LOTTE	POTSDAM	Germany	Delivered	10,904	Green building	Taxonomy
HERZOGENTERASSEN	DÜSSELDORF	Germany	In development	55,717	Energy efficiency	Renovation > Excellent certification
PLANO	BERLIN	Germany	Delivered	-	Green building	Construction > Excellent certification
ALEXANDERPLATZ D3	BERLIN	Germany	In development	-	Green building	Construction > Excellent certification
LOFT - ALT MOABIT	BERLIN	Germany	In development	5,152	Energy efficiency	Renovation > Excellent certification
PIAZZA MONTE TITANO 10	MILAN	Italy	Delivered	5,951	Energy efficiency	Taxonomy
PIAZZA S. FEDELE 2	MILAN	Italy	Delivered	5,089	Green building	Taxonomy
PIAZZA SAN FEDELE 4	MILAN	Italy	Delivered	3,426	Green building	Taxonomy
PIAZZA SIGMUND FREUD (ACCESSORI) 1	MILAN	Italy	Delivered	2,339	Green building	Taxonomy
PIAZZA SIGMUND FREUD (CORPO C) 1	MILAN	Italy	Delivered	5,784	Green building	Taxonomy
PIAZZA SIGMUND FREUD (TORRE A) 1	MILAN	Italy	Delivered	16,349	Green building	Taxonomy
PIAZZA SIGMUND FREUD (TORRE B) 1	MILAN	Italy	Delivered	16,567	Green building	Taxonomy
SYMBIOSIS - EDIFICIO SCHOOL	MILAN	Italy	Delivered	7,938	Green building	Taxonomy
SYMBIOSIS - EDIFICIO AB E AUTO	MILAN	Italy	Delivered	20,832	Green building	Taxonomy
THE SIGN - EDIFICIO A	MILAN	Italy	Delivered	9,588	Green building	Taxonomy
VIA AMEDEI 8	MILAN	Italy	Delivered	6,550	Green building	Taxonomy
VIA DANTE 7 - OFFICE WELLIO	MILAN	Italy	Delivered	4,542	Energy efficiency	Renovation > Excellent certification
VIA MESSINA 38 (TORRE A)	MILAN	Italy	Delivered	4,624	Green building	Taxonomy
VIA MESSINA 38 (TORRE B)	MILAN	Italy	Delivered	5,312	Green building	Operation > Very Good certification
VIA MESSINA 38 (TORRE C)	MILAN	Italy	Delivered	5,309	Green building	Taxonomy
VIA ROMBON 11	MILAN	Italy	Delivered	7,165	Green building	Taxonomy
SYMBIOSIS - EDIFICIO D	MILAN	Italy	Delivered	18,004	Green building	Taxonomy
THE SIGN - EDIFICIO B	MILAN	Italy	Delivered	12,427	Green building	Taxonomy
THE SIGN - EDIFICIO C	MILAN	Italy	Delivered	4,630	Green building	Taxonomy
VIA DELL'UNIONE 1 - OFFICE	MILAN	Italy	Delivered	4,300	Energy efficiency	Renovation > Excellent certification
CORSO FERRUCCI 112	TORINO	Italy	Delivered	39,214	Green building	Taxonomy
CORSO ITALIA 19	MILAN	Italy	In development	12,081	Energy efficiency	Renovation > Excellent certification
SYMBIOSIS - EDIFICIO C+E	MILAN	Italy	In development	23,153	Green building	Construction > Excellent certification
SYMBIOSIS - EDIFICIO G+H	MILAN	Italy	In development	37,297	Green building	Construction > Excellent certification
THE SIGN - EDIFICIO D	MILAN	Italy	In development	12,437	Green building	Construction > Excellent certification
MILANOFIORI - STRADA 8	ROZZANO	Italy	In development	25,698	Energy efficiency	Taxonomy

Name	Green clause (on new leases in Germany/Italy)	Accessibility < 500 m
FONTENAY-SOUS-BOIS LE FLORIA	√	√
LA DÉFENSE/CB 21	√	√
ISSY-LES-MOULINEAUX/ ATLANTIS	√	√
PARIS/ART&CO	√	√
VÉLIZY/DASSAULT CAMPUS	√	√
BOULOGNE/GRENIER	√	√
MELUN/CHAUSSY	√	√
LYON/SILEX 2	√	√
LYON/SILEX 1	√	√
NANTES/TANNEURS	√	√
LEVALLOIS-PERRET/ THAIS	√	√
PARIS/GOBELINS	√	√
PARIS/CHERCHE-MIDI	√	√
PARIS/STEEL	√	√
PARIS/RASPAIL	√	√
BOULOGNE/MOLITOR	√	√
LEVALLOIS-PERRET/PEREIRE	√	√
VÉLIZY/DASSAULT CAMPUS + EXTENSION	√	√
VÉLIZY/NEW VÉLIZY	√	√
MARSEILLE/EUROMED CALYPSO	√	√
CHARENTON/LIBERTÉ	√	√
ORLY/CDO ASKIA BUREAUX	√	√
MONTROUGE/FLOW	√	√
PARIS/JEAN GOUJON	√	√
ORLY/CŒUR D'ORLY BELAÏA	√	√
BORDEAUX/CITÉ NUMÉRIQUE	√	√
CHÂTILLON/IRO	√	√
LEVALLOIS-PERRET/MASLO	√	√
SAINT OUEN/SO POP	√	√
VÉLIZY/EXTENSION	√	√
PARIS/N2 BATIGNOLLES	√	√
PARIS/MONCEAU	N/A	√
PARIS/MADRID - SAINT LAZARE	N/A	√
PARIS/GRANDS BOULEVARDS	N/A	√
PARIS/BOBILLOT	N/A	√
MEUDON/VIBE	N/A	√
Y2	N/A	√
OBERHAUSEN HQ	N/A	√
BERLIN HQ	N/A	√
LOTTE	N/A	√
HERZOGENTERASSEN	N/A	√
PLANO	N/A	√
ALEXANDERPLATZ D3	N/A	√
LOFT - ALT MOABIT	N/A	√
PIAZZA MONTE TITANO 10	On new leases	√
PIAZZA S. FEDELE 2	On new leases	√
PIAZZA SAN FEDELE 4	On new leases	√
PIAZZA SIGMUND FREUD (ACCESSORI) 1	On new leases	√
PIAZZA SIGMUND FREUD (CORPO C) 1	On new leases	√
PIAZZA SIGMUND FREUD (TORRE A) 1	On new leases	√
PIAZZA SIGMUND FREUD (TORRE B) 1	On new leases	√
SYMBIOSIS - EDIFICIO SCHOOL	On new leases	√
SYMBIOSIS - EDIFICIO AB E AUTO	On new leases	√
THE SIGN - EDIFICIO A	On new leases	√
VIA AMEDEI 8	On new leases	√
VIA DANTE 7 - OFFICE WELLIO	On new leases	√
VIA MESSINA 38 (TORRE A)	On new leases	√
VIA MESSINA 38 (TORRE B)	On new leases	√
VIA MESSINA 38 (TORRE C)	On new leases	√
VIA ROMBON 11	On new leases	√
SYMBIOSIS - EDIFICIO D	On new leases	√
THE SIGN - EDIFICIO B	On new leases	√
THE SIGN - EDIFICIO C	On new leases	√
VIA DELL'UNIONE 1 - OFFICE	On new leases	√
CORSO FERRUCCI 112	On new leases	√
CORSO ITALIA 19	N/A	√
SYMBIOSIS - EDIFICIO C+E	N/A	√
SYMBIOSIS - EDIFICIO G+H	N/A	√
THE SIGN - EDIFICIO D	N/A	√
MILANOFIORI - STRADA 8	N/A	√

Portfolio of assets selected - Hotels (at 31 December 2023)

Name	City	Country	Classification 31/12/2023	Surface areas (100%) at 31/12/2023	Eligible category	Main certification criteria
Baden Airpark	Rheinmünster	Germany	Delivered	1,879	Green building	Taxonomy
Erlangen	Erlangen	Germany	Delivered	2,167	Green building	Taxonomy
Freiburg	Freiburg	Germany	Delivered	2,080	Green building	Taxonomy
Mannheim	Mannheim	Germany	Delivered	2,290	Green building	Taxonomy
Niederrad	Frankfurt	Germany	Delivered	3,005	Green building	Taxonomy
Berlin-Potsdamer	Berlin	Germany	Delivered	3,045	Green building	Taxonomy
Braunschweig	Braunschweig	Germany	Delivered	1,776	Green building	Taxonomy
Hanover North	Hanover	Germany	Delivered	1,876	Green building	Taxonomy
Herne	Herne	Germany	Delivered	1,574	Green building	Taxonomy
Köln-Porz	Köln-Porz	Germany	Delivered	2,063	Green building	Taxonomy
Köln	Frechen	Germany	Delivered	2,116	Green building	Taxonomy
Aachen	Würselen	Germany	Delivered	1,776	Green building	Taxonomy
Frankfurt-North	Frankfurt	Germany	Delivered	2,107	Green building	Taxonomy
Mainz	Mainz	Germany	Delivered	1,999	Green building	Taxonomy
Mülheim	Mülheim a.d. Ruhr	Germany	Delivered	2,306	Green building	Taxonomy
Berlin Messe	Berlin	Germany	Delivered	4,402	Green building	Taxonomy
Erfurt	Erfurt	Germany	Delivered	2,597	Green building	Taxonomy
Duisburg	Duisburg	Germany	Delivered	2,706	Green building	Taxonomy
Berlin-Süd	Genshagen	Germany	Delivered	1,827	Green building	CRREM
Düsseldorf Airport	Düsseldorf	Germany	Delivered	2,262	Green building	Taxonomy
Munich Airport -Hallbergmoos	Hallbergmoos	Germany	Delivered	2,864	Green building	Taxonomy
Essen	Essen	Germany	Delivered	2,900	Green building	Taxonomy
Regensburg	Regensburg	Germany	Delivered	3,109	Green building	Taxonomy
Mönchengladbach	Mönchengladbach	Germany	Delivered	2,450	Green building	Taxonomy
Würzburg	Würzburg	Germany	Delivered	1,837	Green building	Taxonomy
Böblingen	Böblingen	Germany	Delivered	2,430	Green building	Taxonomy
Heidelberg	Heidelberg	Germany	Delivered	2,506	Green building	Taxonomy
Nuremberg	Nuremberg	Germany	Delivered	4,656	Green building	Taxonomy
Osnabruck	Osnabruck	Germany	Delivered	2,358	Green building	Taxonomy
Potsdam	Potsdam	Germany	Delivered	2,626	Green building	Taxonomy
Konstanz	Konstanz	Germany	Delivered	2,400	Green building	Taxonomy
Munich	Aschheim	Germany	Delivered	2,666	Green building	Taxonomy
Lübeck	Lübeck	Germany	Delivered	3,502	Green building	Taxonomy
Hamburg East	Hamburg	Germany	Delivered	4,132	Green building	Taxonomy
First Class Frankfurt-Offenbach	Frankfurt	Germany	Delivered	1,626	Green building	Taxonomy
First Class Schweinfurt	Schweinfurt	Germany	Delivered	1,626	Green building	Taxonomy
First Class Hanover	Hanover	Germany	Delivered	1,626	Green building	Taxonomy
Premier Class Düsseldorf -Ratingen	Düsseldorf	Germany	Delivered	1,627	Green building	Taxonomy
First Class Berlin	Berlin	Germany	Delivered	2,239	Green building	CRREM
First Class Düsseldorf City Sud	Düsseldorf	Germany	Delivered	2,162	Green building	CRREM
First Class Köln	Cologne	Germany	Delivered	2,239	Green building	Taxonomy
Meininger Munich	Munich	Germany	Delivered	6,969	Green building	Taxonomy
Motel One Frankfurt Niederrad	Frankfurt	Germany	Delivered	5,377	Green building	Taxonomy
NH Nuremberg	Nuremberg	Germany	Delivered	12,901	Green building	CRREM
NH Düsseldorf Königsallee	Düsseldorf	Germany	Delivered	3,413	Green building	Taxonomy
NH Berlin City Ost	Berlin	Germany	Delivered	2,847	Green building	Taxonomy
NH Hamburg Mitte	Hamburg	Germany	Delivered	5,735	Green building	CRREM
Ibis Dresden	Dresden	Germany	Delivered	38,415	Green building	Taxonomy
Mercure Potsdam City	Potsdam	Germany	Delivered	13,555	Green building	Taxonomy
Pullman Dresden Newa	Dresden	Germany	Delivered	18,192	Green building	CRREM
The Westin Grand Berlin	Berlin	Germany	Delivered	34,494	Green building	CRREM
The Westin Leipzig	Leipzig	Germany	Delivered	45,579	Green building	CRREM
Radisson Blu Leipzig	Leipzig	Germany	Delivered	20,705	Green building	Taxonomy
Radisson Blu Erfurt	Erfurt	Germany	Delivered	16,000	Green building	CRREM
Park Inn Alexander Platz	Berlin	Germany	Delivered	81,313	Green building	CRREM
NOVOTEL BRUSSELS GRD PLACE	Brussels	Belgium	Delivered	7,870	Green building	CRREM
NOVOTEL GENT CENTRUM	Ghent	Belgium	Delivered	7,393	Green building	CRREM
IBIS BRUSSELS AIRPORT	Machelen	Belgium	Delivered	2,648	Green building	CRREM
IBIS BRUGGE CENTRUM	Brugge	Belgium	Delivered	3,768	Green building	CRREM
IBIS ANTWERPEN CENTRUM	Antwerp	Belgium	Delivered	4,476	Green building	CRREM
IBIS GENT OPERA	Ghent	Belgium	Delivered	4,250	Green building	CRREM
IBIS BRUSSELS. EXPO ATOMIUM	Grimbergen	Belgium	Delivered	3,689	Green building	CRREM
Crowne Plaza Brussels Airport	Brussels	Belgium	Delivered	21,243	Green building	CRREM
Park Inn Louvain	Leuven	Belgium	Delivered	6,728	Green building	CRREM
IBIS Brussels City Centrum Ste Catherine	Brussels	Belgium	Delivered	6,724	Green building	CRREM
IBIS Gent Centrum St Baafs Kathedraal	Ghent	Belgium	Delivered	4,150	Green building	CRREM
Alicante	Alicante	Spain	Delivered	6,519	Green building	CRREM
AC Forum Barcelona	Barcelona	Spain	Delivered	29,940	Green building	CRREM
IBIS BUDGET TOULOUSE MATABIAU CENTRE GARE	Toulouse	France	Delivered	3,500	Green building	CRREM
IBIS PARIS LA FAYETTE	Paris	France	Delivered	1,432	Green building	CRREM
NOVOTEL LYON NORD	Dardilly	France	Delivered	4,283	Green building	CRREM
NOVOTEL PARIS CERGY	Cergy-Pontoise	France	Delivered	7,717	Green building	CRREM
NOVOTEL PARIS MASSY	Palaiseau	France	Delivered	5,826	Green building	CRREM
NOVOTEL PARIS ROISSY	Roissy	France	Delivered	10,014	Green building	Taxonomy
NOVOTEL PARIS ST QUENTIN	Magny-les-Hameaux	France	Delivered	7,171	Green building	CRREM
NOVOTEL STRASBOURG HALLE	Strasbourg	France	Delivered	3,762	Green building	CRREM
NOVOTEL TOULOUSE COMPANS	Toulouse	France	Delivered	7,410	Green building	CRREM
NOVOTEL ATRIA GRENOBLE	Grenoble	France	Delivered	6,004	Green building	CRREM
NOVOTEL ATRIA RUEIL	Rueil-Malmaison	France	Delivered	7,620	Green building	CRREM
IBIS ANNECY	Annecy	France	Delivered	2,661	Green building	CRREM
IBIS BORDEAUX LAC 2	Bordeaux	France	Delivered	4,713	Green building	CRREM
IBIS CHARTRES CENTRE	Chartres	France	Delivered	1,443	Green building	CRREM
IBIS LIMOGES CENTRE	Limoges	France	Delivered	1,977	Green building	Taxonomy
IBIS MARSEILLE CENTRE	Marseille	France	Delivered	1,310	Green building	CRREM
IBIS METZ CENTRE CATHEDRALE	Metz	France	Delivered	2,094	Green building	CRREM
IBIS NICE CENTRE	Nice	France	Delivered	7,038	Green building	CRREM
IBIS PARIS BASTILLE OPERA	Paris	France	Delivered	7,862	Green building	CRREM
IBIS PARIS VERSAILLES PARLY 2	Le Chesnay	France	Delivered	1,851	Green building	CRREM
IBIS ROUEN CENTER RIVE DROITE	Rouen	France	Delivered	2,570	Green building	CRREM
IBIS ROUEN CENTER RIVE GAUCHE	Rouen	France	Delivered	2,398	Green building	CRREM
IBIS STRASBOURG CENTER PETITE FRANCE	Strasbourg	France	Delivered	2,814	Green building	CRREM
IBIS STRASBOURG CENTRE HISTORIQUE	Strasbourg	France	Delivered	5,781	Green building	CRREM
IBIS TOULOUSE BLAGNAC AEROPORT	Blagnac	France	Delivered	2,932	Green building	CRREM
MERCURE LYON LUMIERE	Lyon	France	Delivered	3,782	Green building	Taxonomy
MERCURE PARIS LA DÉFENSE	Nanterre	France	Delivered	5,851	Green building	CRREM
MERCURE ST QUENTIN	Montigny le Bretonneux	France	Delivered	3,507	Green building	Taxonomy
NOVOTEL BORDEAUX C MERIADECK	Bordeaux	France	Delivered	5,374	Green building	CRREM
NOVOTEL LILLE CENTER PALAIS CONGRES	Lille	France	Delivered	4,360	Green building	CRREM
NOVOTEL NIMES CENTRE ATRIA	Nimes	France	Delivered	6,414	Green building	CRREM
NOVOTEL PARIS PONT DE SEVRES	Sevres	France	Delivered	5,062	Green building	CRREM
IBIS BUDGET L'ISLE ADAM	L'Isle d'Adam	France	Delivered	1,410	Green building	CRREM
IBIS BUDGET GENNEVILLIERS	Gennevilliers	France	Delivered	2,720	Green building	CRREM
IBIS ARRAS	Arras	France	Delivered	1,354	Green building	CRREM
IBIS AVIGNON GARE	Avignon	France	Delivered	2,361	Green building	CRREM
IBIS BORDEAUX GARE	Bordeaux	France	Delivered	2,100	Green building	CRREM
IBIS FONTAINEBLEAU	Fontainebleau	France	Delivered	2,615	Green building	Taxonomy
IBIS MARSEILLE PRADO	Marseille	France	Delivered	2,975	Green building	CRREM
IBIS NANCY CENTRE GARE	Nancy	France	Delivered	2,436	Green building	CRREM
IBIS ORLEANS CENTRE GARE	Orléans	France	Delivered	1,941	Green building	CRREM
IBIS PARIS CAMBRONNE	Paris	France	Delivered	15,235	Green building	CRREM
IBIS STRASBOURG HALLES	Strasbourg	France	Delivered	2,600	Green building	CRREM
IBIS STYLES PARIS BERCY	Paris	France	Delivered	7,944	Green building	CRREM
MERCURE STRASBOURG	Strasbourg	France	Delivered	3,792	Green building	CRREM
NOVOTEL LILLE FLANDRES	Lille	France	Delivered	3,780	Green building	CRREM
MERCURE PARIS PORTE ST CLOUD	Boulogne-Billancourt	France	Delivered	9,920	Green building	Taxonomy
Angers 1	BEAUCOUZE	France	Delivered	1,367	Green building	CRREM
Aulnay sous Bois	AULNAY-SOUS-BOIS	France	Delivered	2,620	Green building	CRREM
Dreux	DREUX	France	Delivered	1,002	Green building	CRREM
Evry Lisses 1	EVRY LES LISSES	France	Delivered	1,839	Green building	CRREM
Evry Lisses 2	EVRY LES LISSES	France	Delivered	1,918	Green building	CRREM
Besançon	BESANCON	France	Delivered	920	Green building	CRREM
Beziers	VILLENEUVE LES BÉZIERS	France	Delivered	1,468	Green building	CRREM
Bordeaux Brugge	Bordeaux	France	Delivered	1,683	Green building	CRREM
Bordeaux Mérignac	MERIGNAC	France	Delivered	1,574	Green building	CRREM
Hyères	HYERES	France	Delivered	918	Green building	CRREM
La Queue en Brie	La Queue en Brie	France	Delivered	1,076	Green building	CRREM
Brest Kergaradec	BREST KERGARADEC	France	Delivered	935	Green building	CRREM
Brest Port	BREST	France	Delivered	2,389	Green building	Taxonomy
Caen memorial	SAINT-CONTEST	France	Delivered	1,362	Green building	CRREM
Chambéry	CHAMBERY	France	Delivered	1,653	Green building	CRREM
Le Mans South	ARNAGE	France	Delivered	1,367	Green building	CRREM
Lens Noyelles Godault	NOYELLES-GODAULT	France	Delivered	1,612	Green building	Taxonomy
Nantes Saint Herblain	SAINT HERBLAIN	France	Delivered	1,683	Green building	CRREM
Orgeval	ORGEVAL	France	Delivered	1,617	Green building	CRREM
Louveciennes	LOUVECIENNES	France	Delivered	1,822	Green building	CRREM
Poitiers 1	CHASSENEUIL -DU-POITOU	France	Delivered	1,442	Green building	CRREM
Lyon Gambetta	Lyon	France	Delivered	2,617	Green building	Taxonomy
Lyon Montplaisir	Lyon	France	Delivered	2,740	Green building	CRREM
Poitiers 3	CHASSENEUIL -DU-POITOU	France	Delivered	2,353	Green building	CRREM
Lyon Vénissieux	VENISSIEUX	France	Delivered	3,515	Green building	Taxonomy
Malakoff - Paris Parc des Expositions	MALAKOFF	France	Delivered	5,225	Green building	CRREM
Rennes Cession Sévigné	CESSON-SEVIGNE	France	Delivered	1,859	Green building	CRREM
Rennes Saint Grégoire	SAINT GREGOIRE CEDEX	France	Delivered	1,574	Green building	CRREM
Rouen Saint Etienne du Rouvray	ST ETIENNE-DU-ROUVRAY	France	Delivered	1,441	Green building	CRREM
Maurepas	MAUREPAS	France	Delivered	1,362	Green building	CRREM
Metz Augny	AUGNY	France	Delivered	1,368	Green building	CRREM
Nantes centre	Nantes	France	Delivered	1,723	Green building	CRREM
Nantes La Beaujoire	Nantes	France	Delivered	1,367	Green building	Taxonomy
Cholet	CHOLET	France	Delivered	1,355	Green building	CRREM
Saint Michel sur Orge	SAINT -MICHEL-SUR-ORGE	France	Delivered	1,331	Green building	CRREM
Saint Quentin	ST QUENTIN	France	Delivered	1,514	Green building	CRREM
Colmar	WINTZENHEIM	France	Delivered	1,362	Green building	CRREM
Corbeil	CORBEIL-ESSONNES	France	Delivered	1,076	Green building	CRREM
Tours Nord 1	TOURS	France	Delivered	1,278	Green building	CRREM
Tours Nord 2	TOURS	France	Delivered	1,361	Green building	CRREM
Tours Sud	JOUÉ LES TOURS	France	Delivered	1,574	Green building	CRREM
Troyes Saint Parres	SAINT -PARRES-AUX-TERTRES	France	Delivered	1,324	Green building	CRREM
Vannes Est	VALVES	France	Delivered	1,622	Green building	Taxonomy
Metz Jouy Aux Arches	JOUY-AUX-ARCHES	France	Delivered	1,331	Green building	CRREM
Off-plan sales at Porte de Choisy	IVRY-SUR-SEINE	France	Delivered	4,598	Green building	CRREM
Salon Provence	SALON-DE-PROVENCE	France	Delivered	1,954	Green building	CRREM
Valenciennes Marly	MARLY	France	Delivered	1,932	Green building	CRREM
EuraLille	LILLE	France	Delivered	2,789	Green building	CRREM
Off-plan sales Lyon Caluire	CALUIRE AND COOK	France	Delivered	2,875	Green building	Taxonomy
Arras	ARRAS	France	Delivered	1,925	Green building	CRREM
Nanterre	Nanterre	France	Delivered	3,364	Green building	Taxonomy
Chatenay Malabry	Chatenay-Malabry	France	Delivered	2,947	Green building	CRREM
Lyon Berthelot	Lyon	France	Delivered	2,605	Green building	Taxonomy
Lens	Lens	France	Delivered	1,767	Green building	CRREM
Roubaix	ROUBAIX	France	Delivered	2,227	Green building	CRREM
Sophia Antipolis Le Biot	Biot	France	Delivered	1,397	Green building	CRREM
Paris Est Bondy	Bondy	France	Delivered	3,699	Green building	CRREM
Cannes Ouest la Bocca	Cannes	France	Delivered	2,340	Green building	CRREM
Chevilly Larue	CHEVILLY-LARUE	France	Delivered	1,939	Green building	CRREM
Bayonne Tarnos	Tarnos	France	Delivered	2,135	Green building	Taxonomy
Porte des Lilas	Paris	France	Delivered	7,104	Green building	Taxonomy
Romainville	Noisy-le-sec	France	Delivered	2,264	Green building	CRREM
Torcy	Torcy	France	Delivered	3,153	Green building	CRREM
Grand Hôtel Bellevue	Lille	France	Delivered	4,000	Green building	Taxonomy
Art Deco	Lille	France	Delivered	1,500	Green building	CRREM
Hermitage Gantois	Lille	France	Delivered	7,800	Green building	CRREM
Meininger Lyon Zimmermann	Lyon	France	Delivered	5,189	Green building	Taxonomy
Meridien Nice	Nice	France	Delivered	16,092	Green building	CRREM
Motel One Porte Dorée	Paris	France	Delivered	6,233	Green building	Taxonomy
FORMULE 1 Paris Porte de Montmartre	PARIS	France	Delivered	8,221	Green building	CRREM
IBIS Bordeaux Bastide	Bordeaux	France	Delivered	2,390	Green building	CRREM
IBIS BUDGET Lille Centre Gare	LILLE	France	Delivered	2,703	Green building	CRREM
IBIS BUDGET Lyon Gerland	Lyon	France	Delivered	2,106	Green building	CRREM
IBIS BUDGET Marseille Prado	Marseille	France	Delivered	1,852	Green building	CRREM
IBIS BUDGET Paris Porte de Montmartre	PARIS	France	Delivered	10,474	Green building	CRREM
IBIS BUDGET Saint Cyr l'Ecole	SAINT CYR L'ÉCOLE	France	Delivered	1,070	Green building	CRREM
IBIS BUDGET Toulouse Cité de l'Espace N 2	Toulouse	France	Delivered	1,445	Green building	CRREM
IBIS BUDGET Vélizy	Vélizy	France	Delivered	2,413	Green building	CRREM
IBIS Lyon La Part Dieu Center Halles	Lyon	France	Delivered	5,640	Green building	CRREM
IBIS Marseille Gare Saint Charles	Marseille	France	Delivered	5,427	Green building	CRREM
IBIS Nantes Center Tour Bretagne	Nantes	France	Delivered	4,812	Green building	Taxonomy
IBIS Paris La Villette	PARIS	France	Delivered	8,218	Green building	CRREM
IBIS Paris Montmartre	PARIS	France	Delivered	8,926	Green building	CRREM
IBIS Paris Porte d'Orleans	Montrouge	France	Delivered	10,458	Green building	CRREM
IBIS STYLES Lille Centre	LILLE	France	Delivered	4,141	Green building	Taxonomy
IBIS Toulouse Centre	Toulouse	France	Delivered	5,216	Green building	CRREM
MERCURE Marseille Centre	Marseille	France	Delivered	6,110	Green building	CRREM
MERCURE Massy Gare Tgv	MASSY	France	Delivered	3,330	Green building	CRREM
MERCURE Paris La Défense 5	Courbevoie	France	Delivered	18,652	Green building	Taxonomy
MERCURE Paris Porte d'Orleans	Montrouge	France	Delivered	7,846	Green building	CRREM
NY Residence Budapest	Budapest	Hungary	Delivered	15,185	Green building	CRREM
Palazzo Naiadi Roma	Rome	Italy	Delivered	23,440	Green building	CRREM
Dei Dogi Venezia	Venice	Italy	Delivered	4,871	Green building	Taxonomy
Santa Lucia Venezia	Venice	Italy	Delivered	5,608	Green building	Taxonomy
Palazzo Gaddi Florence	Florence	Italy	Delivered	7,356	Green building	Taxonomy
NH Amsterdam	Amsterdam	Netherlands	Delivered	13,600	Green building	CRREM
NH Amsterdam Noord	Amsterdam	Netherlands	Delivered	14,916	Green building	CRREM
NH Amersfoort	Amersfoort	Netherlands	Delivered	5,580	Green building	Taxonomy
B&B Lodz	LODZ	Poland	Delivered	5,909	Green building	CRREM
B&B Krakow	Krakow	Poland	Delivered	5,293	Green building	Taxonomy
B&B Warsaw	Warsaw	Poland	Delivered	4,042	Green building	CRREM
B&B Lublin	Lublin	Poland	Delivered	-	Green building	Taxonomy
DA BALAIA	Albufeira	Portugal	Delivered	45,813	Green building	Taxonomy
Kimpton Fitzroy London	London	UK	Delivered	21,213	Green building	Taxonomy
Kimpton Manchester	Manchester	UK	Delivered	27,132	Green building	CRREM
Kimpton Edinburgh Charlotte Square	Edinburgh	UK	Delivered	13,747	Green building	CRREM
Intercontinental Edinburgh George Street	Edinburgh	UK	Delivered	13,658	Green building	CRREM
Kimpton Glasgow Blythswood Square	Glasgow	UK	Delivered	9,841	Green building	CRREM
Principal York	York	UK	Delivered	12,466	Green building	CRREM
The Met Hotel Leeds	Leeds	UK	Delivered	4,665	Green building	CRREM
Voco Glasgow Grand Central	Glasgow	UK	Delivered	20,541	Green building	Taxonomy
Voco Oxford Spiers	Oxford	UK	Delivered	13,485	Green building	CRREM
Voco Oxford Thames	Oxford	UK	Delivered	12,000	Green building	Taxonomy

Name	Green clause (on new leases outside France)	Accessibility < 500 m
Baden Airpark	^*	√
Erlangen	^*	√
Freiburg	^*	√
Mannheim	^*	√
Niederrad	^*	√
Berlin-Potsdamer	^*	√
Braunschweig	^*	√
Hanover North	^*	√
Herne	^*	√
Köln-Porz	^*	√
Köln	^*	√
Aachen	^*	√
Frankfurt-North	^*	√
Mainz	^*	√
Mülheim	^*	√
Berlin Messe	^*	√
Erfurt	^*	√
Duisburg	^*	√
Berlin-Süd	^*	√
Düsseldorf Airport	^*	√
Munich Airport -Hallbergmoos	^*	√
Essen	^*	√
Regensburg	^*	√
Mönchengladbach	^*	√
Würzburg	^*	√
Böblingen	^*	√
Heidelberg	^*	√
Nuremberg	^*	√
Osnabruck	^*	√
Potsdam	^*	√
Konstanz	^*	√
Munich	^*	√
Lübeck	^*	√
Hamburg East	^*	√
First Class Frankfurt-Offenbach	^*	√
First Class Schweinfurt	^*	√
First Class Hanover	^*	√
Premier Class Düsseldorf -Ratingen	^*	√
First Class Berlin	^*	√
First Class Düsseldorf City Sud	^*	√
First Class Köln	^*	√
Meininger Munich	^*	√
Motel One Frankfurt Niederrad	^*	√
NH Nuremberg	^*	√
NH Düsseldorf Königsallee	^*	√
NH Berlin City Ost	^*	√
NH Hamburg Mitte	^*	√
Ibis Dresden	^*	√
Mercure Potsdam City	^*	√
Pullman Dresden Newa	^*	√
The Westin Grand Berlin	^*	√
The Westin Leipzig	^*	√
Radisson Blu Leipzig	^*	√
Radisson Blu Erfurt	^*	√
Park Inn Alexander Platz	^*	√
NOVOTEL BRUSSELS GRD PLACE	^*	√
NOVOTEL GENT CENTRUM	^*	√
IBIS BRUSSELS AIRPORT	^*	√
IBIS BRUGGE CENTRUM	^*	√
IBIS ANTWERPEN CENTRUM	^*	√
IBIS GENT OPERA	^*	√
IBIS BRUSSELS. EXPO ATOMIUM	^*	√
Crowne Plaza Brussels Airport	^*	√
Park Inn Louvain	^*	√
IBIS Brussels City Centrum Ste Catherine	^*	√
IBIS Gent Centrum St Baafs Kathedraal	^*	√
Alicante	^*	√
AC Forum Barcelona	^*	√
IBIS BUDGET TOULOUSE MATABIAU CENTRE GARE	√	√
IBIS PARIS LA FAYETTE	√	√
NOVOTEL LYON NORD	√	√
NOVOTEL PARIS CERGY	√	√
NOVOTEL PARIS MASSY	√	√
NOVOTEL PARIS ROISSY	√	√
NOVOTEL PARIS ST QUENTIN	√	√
NOVOTEL STRASBOURG HALLE	√	√
NOVOTEL TOULOUSE COMPANS	√	√
NOVOTEL ATRIA GRENOBLE	√	√
NOVOTEL ATRIA RUEIL	√	√
IBIS ANNECY	√	√
IBIS BORDEAUX LAC 2	√	√
IBIS CHARTRES CENTRE	√	√
IBIS LIMOGES CENTRE	√	√
IBIS MARSEILLE CENTRE	√	√
IBIS METZ CENTRE CATHEDRALE	√	√
IBIS NICE CENTRE	√	√
IBIS PARIS BASTILLE OPERA	√	√
IBIS PARIS VERSAILLES PARLY 2	√	√
IBIS ROUEN CENTER RIVE DROITE	√	√
IBIS ROUEN CENTER RIVE GAUCHE	√	√
IBIS STRASBOURG CENTER PETITE FRANCE	√	√
IBIS STRASBOURG CENTRE HISTORIQUE	√	√
IBIS TOULOUSE BLAGNAC AEROPORT	√	√
MERCURE LYON LUMIERE	√	√
MERCURE PARIS LA DÉFENSE	√	√
MERCURE ST QUENTIN	√	√
NOVOTEL BORDEAUX C MERIADECK	√	√
NOVOTEL LILLE CENTER PALAIS CONGRES	√	√
NOVOTEL NIMES CENTRE ATRIA	√	√
NOVOTEL PARIS PONT DE SEVRES	√	√
IBIS BUDGET L'ISLE ADAM	√	√
IBIS BUDGET GENNEVILLIERS	√	√
IBIS ARRAS	√	√
IBIS AVIGNON GARE	√	√
IBIS BORDEAUX GARE	√	√
IBIS FONTAINEBLEAU	√	√
IBIS MARSEILLE PRADO	√	√
IBIS NANCY CENTRE GARE	√	√
IBIS ORLEANS CENTRE GARE	√	√
IBIS PARIS CAMBRONNE	√	√
IBIS STRASBOURG HALLES	√	√
IBIS STYLES PARIS BERCY	√	√
MERCURE STRASBOURG	√	√
NOVOTEL LILLE FLANDRES	√	√
MERCURE PARIS PORTE ST CLOUD	√	√
Angers 1	√	√
Aulnay sous Bois	√	√
Dreux	√	√
Evry Lisses 1	√	√
Evry Lisses 2	√	√
Besançon	√	√
Beziers	√	√
Bordeaux Brugge	√	√
Bordeaux Mérignac	√	√
Hyères	√	√
La Queue en Brie	√	√
Brest Kergaradec	√	√
Brest Port	√	√
Caen memorial	√	√
Chambéry	√	√
Le Mans South	√	√
Lens Noyelles Godault	√	√
Nantes Saint Herblain	√	√
Orgeval	√	√
Louveciennes	√	√
Poitiers 1	√	√
Lyon Gambetta	√	√
Lyon Montplaisir	√	√
Poitiers 3	√	√
Lyon Vénissieux	√	√
Malakoff - Paris Parc des Expositions	√	√
Rennes Cession Sévigné	√	√
Rennes Saint Grégoire	√	√
Rouen Saint Etienne du Rouvray	√	√
Maurepas	√	√
Metz Augny	√	√
Nantes centre	√	√
Nantes La Beaujoire	√	√
Cholet	√	√
Saint Michel sur Orge	√	√
Saint Quentin	√	√
Colmar	√	√
Corbeil	√	√
Tours Nord 1	√	√
Tours Nord 2	√	√
Tours Sud	√	√
Troyes Saint Parres	√	√
Vannes Est	√	√
Metz Jouy Aux Arches	√	√
Off-plan sales at Porte de Choisy	√	√
Salon Provence	√	√
Valenciennes Marly	√	√
EuraLille	√	√
Off-plan sales Lyon Caluire	√	√
Arras	√	√
Nanterre	√	√
Chatenay Malabry	√	√
Lyon Berthelot	√	√
Lens	√	√
Roubaix	√	√
Sophia Antipolis Le Biot	√	√
Paris Est Bondy	√	√
Cannes Ouest la Bocca	√	√
Chevilly Larue	√	√
Bayonne Tarnos	√	√
Porte des Lilas	√	√
Romainville	√	√
Torcy	√	√
Grand Hôtel Bellevue	√	√
Art Deco	√	√
Hermitage Gantois	√	√
Meininger Lyon Zimmermann	√	√
Meridien Nice	√	√
Motel One Porte Dorée	√	√
FORMULE 1 Paris Porte de Montmartre	√	√
IBIS Bordeaux Bastide	√	√
IBIS BUDGET Lille Centre Gare	√	√
IBIS BUDGET Lyon Gerland	√	√
IBIS BUDGET Marseille Prado	√	√
IBIS BUDGET Paris Porte de Montmartre	√	√
IBIS BUDGET Saint Cyr l'Ecole	√	√
IBIS BUDGET Toulouse Cité de l'Espace N 2	√	√
IBIS BUDGET Vélizy	√	√
IBIS Lyon La Part Dieu Center Halles	√	√
IBIS Marseille Gare Saint Charles	√	√
IBIS Nantes Center Tour Bretagne	√	√
IBIS Paris La Villette	√	√
IBIS Paris Montmartre	√	√
IBIS Paris Porte d'Orleans	√	√
IBIS STYLES Lille Centre	√	√
IBIS Toulouse Centre	√	√
MERCURE Marseille Centre	√	√
MERCURE Massy Gare Tgv	√	√
MERCURE Paris La Défense 5	√	√
MERCURE Paris Porte d'Orleans	√	√
NY Residence Budapest	^*	√
Palazzo Naiadi Roma	^*	√
Dei Dogi Venezia	^*	√
Santa Lucia Venezia	^*	√
Palazzo Gaddi Florence	^*	√
NH Amsterdam	^*	√
NH Amsterdam Noord	^*	√
NH Amersfoort	^*	√
B&B Lodz	^*	√
B&B Krakow	^*	√
B&B Warsaw	^*	√
B&B Lublin	^*	√
DA BALAIA	^*	√
Kimpton Fitzroy London	^*	√
Kimpton Manchester	^*	√
Kimpton Edinburgh Charlotte Square	^*	√
Intercontinental Edinburgh George Street	^*	√
Kimpton Glasgow Blythswood Square	^*	√
Principal York	^*	√
The Met Hotel Leeds	^*	√
Voco Glasgow Grand Central	^*	√
Voco Oxford Spiers	^*	√
Voco Oxford Thames	^*	√

^* On new leases

3.3.4.3 Information on SFDR regulations for Covivio's financial partners

Information for financial institutions in the context of the SFDR regulation (European Directive on non-financial reporting for financial institutions).

Negative impacts on sustainability factors		Metric	Impact [year n]	Explanations	Actions taken and actions planned and objectives set for the next baseline year
Fossil fuels	1. Exposure to fossil fuels via real estate assets	Share of investment in real estate assets used for extraction, storage, transport or fossil fuel production	0%	Covivio invests in real estate assets. None of these buildings is dedicated to the extraction, storage, transport or production of fossil fuels.
Energy efficiency	2. Exposure to energy inefficient real estate assets	Share of investment in real estate assets which are energy inefficient	Covivio (group): 40.5%	Share of assets (in value) that do not have a class C EPC or do not belong to the regional top 30% (see methodology used for the taxonomy)(1)	Energy: 3.3.3.2
			Covivio Hotels: 46.9%		Carbon: Introduction of 3.3 and 3.3.3.3
			Covivio Immobilien: 69.3%

⁽¹⁾ With a view to harmonising with the taxonomy, Covivio chooses DNSH on climate change mitigation given the limits related to taking into account only the EPC as an energy efficiency assessment criterion.

All environmental data (energy, carbon, renewable energies, water, waste) relating to the Group and the companies Covivio Hotels and Covivio Immobilien are presented respectively in Sections 3.7.1.6, 3.7.1.4 and 3.7.1.5.

Governance, ethics and human resources criteria are also included in this Document, in particular in Chapters 5.3 (governance structure and composition of governance bodies), 3.2.3.3 and 3.2.4 (materiality analysis and CSR risk mapping), 3.5.2.1 (employee relations and employee-employer dialogue), 3.5.1.3.2 and 3.7.2 (remuneration and pay gaps), 4.2.6.9 (taxation) and 3.3.4.1 (human rights).

Covivio's Ethics Charter is also available to all its stakeholders on its website:

https://www.covivio.eu/wp-content/uploads/sites/6/2024/01/2024_EthicsCharter.pdf.

3.4 Societal policy: accelerating regional transformation

In an effort to address climatic, environmental, social and digital challenges, Covivio makes sure that its portfolio is consistent with local needs, equipment, infrastructure, culture and customs, as well as local expertise and markets.

Each building must fit in the most relevant way possible with the various requirements for transport networks, energy, communications networks, biodiversity, etc. The CSR risk mapping carried out by Covivio in 2018 highlighted "Integration within the sustainable city", an issue where the Group is able to capitalise on its acknowledged expertise in the area of long-term, value-creating partnerships. This multi-stakeholder involvement is central to the response to two other societal issues raised by the mapping, namely "Responsible supply chain" and "Quality of relations with external stakeholders (including customers and suppliers, etc)".

With a European development pipeline worth €1.7 billion at the end of 2023, Covivio is participating in the emergence of more sustainable and inclusive cities. The Group has focused its investment strategy on large European cities and capitals. These cities will have to face major challenges in terms of population growth and the environment as they seek to limit urban sprawl, protect biodiversity and improve the quality of the air, housing and public transport. They will continue to look to attract businesses and talents, host the best training facilities and enjoy a significant share of innovation and growth. In this competition, to ensure their attractiveness, the regions must take account of the emergence of new digital tools, robots and artificial intelligence. The "smart city" will facilitate the advent of a carbon-neutral society, eliminating the use of fossil fuels, no later than 2050.

Real estate plays a central role in this major upheaval, where the environment, the economy and social cohesion are interwoven and interdependent.

Expressed under the leadership of the Board of Directors, Covivio's Purpose, Build sustainable relationships and well-being, is the result of a wide-ranging internal consultation, over several months, within dedicated working groups. This innovative collective reflection process has enabled a large number of employees from the company's different business lines to express their views. Covivio's CSR policy has thus been strengthened, through the commitment of employees and the degree of shared ambition on objectives across all company levels.

Covivio's Purpose is resolutely focused on its various stakeholders, in particular through three initiatives:

―	the establishment of a Stakeholders Committee (composition: see 3.2.2.2);
―	the creation of a Foundation that brings together all actions in favour of equal opportunities (3.4.1);
―	the opportunity for teams to contribute to increasing societal commitments and links with the regions, with a yearly solidarity day to support a societal project proposed on the "Socovivio" platform.

The inclusion of Covivio's Purpose in its Articles of Association will be submitted to shareholders for approval at the Combined General Meeting of 17 April 2024.

Key societal performance indicators (at 31 December 2023)

€1.7bn

EUROPEAN DEVELOPMENT PIPELINE

"INTEGRATION WITHIN THE SUSTAINABLE CITY" RISK

15,100

JOBS SUPPORTED THROUGH THE GROUP'S ACTIVITIES (2018)

1

BIODIVERSITY MAPPING WITH A EUROPEAN DIMENSION

99.8 %

SITES ACCESSIBLE BY PUBLIC TRANSPORT

« RESPONSABLE SUPPLY CHAIN » RISK

70/100

COVIVIO SCORE IN THE ECOVADIS SUSTAINABILITY LEADERSHIP AWARD

1

PURCHASING MAPPING WITH A EUROPEAN DIMENSION

186

SUPPLIERS ASSESSED BY ECOVADIS

"QUALITY OF RELATIONS WITH EXTERNAL STAKEHOLDERS" RISK (CUSTOMERS, SUPPLIERS, REGIONS, EDUCATION SECTOR, ETC.)

92%

OF OFFICE TENANTS IN FRANCE ARE SATISFIED WITH THE RESPONSES GIVEN TO THEIR REQUEST

6 ^th

CONSECUTIVE YEAR IN THE TOP OF GERMAN HOUSING COMPANIES IN THE FOCUS MONEY STUDY

100%

OF FRANCE OFFICES LEASES >2,000m ² ARE COVERED BY AN ENVIRONMENTAL ANNEXE

3.4.1 Collaboration with cities and regions

The city of the future will be low-carbon and interconnected, and contribute to the circular economy. To limit travel and offer more convivial living spaces, buildings must be flexible, able to evolve by integrating new technologies and adapting to mixed uses, allowing city dwellers to use these open city spaces to live, work and relax.

By anticipating these changes, Covivio is able to better manage the risks that could adversely affect the appeal of its assets if the Group did not make every effort to work very closely with its stakeholders, especially major cities. When CSR risks were mapped, the "Integration within the sustainable city" risk was identified as a major risk with regard to Covivio's activities in Europe.

The integration of a building within its environment is a major challenge in terms of the urban landscape and biodiversity, energy and transport networks, as well as its acceptability to local residents and public authorities. Its successful integration within the city also has social and economic dimensions in terms of employment and culture.

3.4.1.1 Understanding local areas and strengthening cooperation with stakeholders

Backed by the strong partnership-based approach that has underpinned its success, Covivio gave new impetus to its cooperation with its stakeholders by expressing its Purpose.

To work in close contact with its stakeholders, in addition to its premises in Paris and Metz, Covivio has four regional Offices in France (in Lille, Lyon, Bordeaux and Marseille). In Germany, Offices and branches have been opened in cities including Berlin, Dresden, Essen, Hamburg and Leipzig to supplement the teams historically located in Oberhausen. In Italy, the teams are based in Rome and Milan. Elsewhere, Covivio is represented in Luxembourg by two employees and in Spain with a Country Manager to support local development and build a close relationship with partners.

Covivio strives to boost the outreach of the local areas in which its assets are located, in particular by supporting numerous public relations events.

Real estate is experiencing an unprecedented change due to new technologies and new user needs and practices. For Covivio, innovation is both a source of enhanced competitiveness and a way of opening up new markets. To accompany the trends that drive its markets, Covivio implements its innovation-driven approach on a pan-European basis through various means:

―	developing synergies with innovation players: Covivio uses incubators to detect innovations developed by start-ups in the building and real estate sector, or with Maddyness, a media outlet for start-ups and innovation, which promotes Covivio's actions within its ecosystem
―	creating innovation partnerships with key account tenants (e.g. Sekoya 3.3.2.3; Air Quality Challenge 3.3.3.3.3, etc.) in order to accelerate the transformation of real estate for the benefit of the customer experience, as with the Orange group in the context of the restructuring of the Paris-Montmartre building;
―	instilling a culture of innovation in all employees: as innovation is cross-functional and collaborative, actions have been initiated in all Group entities to identify and work with new players in the world of real estate.

Managing relations with local residents during development operations

For its construction and renovation projects, Covivio endeavours to limit pollution and to implement risk management and prevention mechanisms. Upstream of projects, there is a mapping operation concerning residents who live near the sites, to assess risks. For projects that require it, information meetings for local residents are organised, often in collaboration with local authorities.

Covivio informs local residents in advance of the nature of the project, the duration of the construction, site working hours and delivery, the companies involved in the project, and contact methods, via a letter posted on the site. It may be supplemented by targeted information letters. In addition, a complaint handling mechanism is deployed on development projects. Complaints can thus be reported via a dedicated email address and/or a mailbox directly on the construction site.

For projects located in dense urban areas with many local residents, additional measures may be implemented. As part of the Monceau project in Paris, newsletters were sent to each local resident at various stages of the project that might impact local life. An application was set up by the company in charge of the works, that allowed locals to receive updates on works (noisy stages, noise prevention, general information, etc.) and facilitating contact with contractors. If complaints are expressed on the platform, Covivio is directly informed in order to ensure the implementation of the appropriate solutions in cooperation with the companies concerned.

Surveillance systems, particularly to measure noise levels, may also be installed during the work. Various measures put in place by construction companies also limit noise and visual pollution. The low-nuisance construction site charter also helps engage site workers in subjects such as risk prevention, soil and air pollution and waste management.

The AR4CUP project (Augmented Reality for Collaborative Urban Planning) in collaboration with Politecnico di Milano also illustrates this collaborative approach. The AR4CUP project aims to promote the marketing of a new SAAS (Software As A Service) product that will allow urban projects to be presented using augmented reality, so citizens and decision-makers can work with architects and developers in a virtuous creation process. This new product was tested on the Vitae project, winner of the international Reinventing Cities competition.

This involvement in the regions is not limited to the management of nuisances. The group also aims to integrate into the local fabric and strengthen relations with local stakeholders. This can be expressed by the signing of a clause on integration on the construction site, which can be supplemented by a commitment to local employment, a mapping of local players to identify potential partners or the preferred use of local suppliers. In the same vein, the sites under development can also host temporary cultural events such as the parades at the Monceau project (delivery scheduled for 2025) or a contemporary art exhibition in the Grands Boulevards building (delivery scheduled for 2026) in Paris.

3.4.1.2 Getting involved in regional revitalisation initiatives

3.4.1.2.1 Measuring the socio-economic impact of activities on a European level

Aware of its economic weight and its presence in several major European cities, Covivio has been committed to characterising and quantifying the socio-economic consequences of its France Offices and Italy Offices activities since 2014 and 2016 respectively. In 2018, Covivio extended the scope of its study to all of the Group's activities in Europe (excluding the German Offices which were only acquired subsequently) by measuring the impacts of its Residential business in Germany and its Covivio Hotels subsidiary. These studies are performed with the company Utopies and use the LOCAL FOOTPRINT® methodology.

The LOCAL FOOTPRINT® model

The LOCAL FOOTPRINT ^® model is based on national trade statistics tables of exchanges between industries, in particular from Input-Output tables (sources: Eurostat and Eora) and research on regional economics from the University of Bristol. Based on real or modelled purchasing, payroll and tax data of companies, LOCAL FOOTPRINT ^® is used to simulate the socio-economic benefits of a business in a given area.

The analysis conducted in 2019 and presented in summary below covers all of the sites under development, undergoing renovation and in operation. It is based on the data collected for German Residential and France and Italy Offices. Covivio also wished to conduct an exploratory study into the socio-economic impacts of the hotels it owns and operates. To do so, the cash injected by these economic players was modelled using national statistics such as those published by INSEE, the French national office of economic statistics. As the years 2020 and 2021 are atypical due to the health and economic situation, the study was not repeated in 2021 nor in 2022. The figures presented below are those published in the 2020 Universal Registration Document and their order of magnitude is still relevant in 2023.

The main results of the socio-economic consequences of Offices, residential & hotels activities

Direct impacts: these are related to Covivio's presence in France, Germany and Italy through its 922 employees (full-time equivalent at the end of 2018).

Indirect impacts: these translate the economic benefits generated by purchases or investments. Covivio spent €520 million on purchasing goods and services and this generated economic activity for its service providers and suppliers. This activity has repercussions for the full supply chain. As a result, Covivio helps to support 7,100 jobs in France, Germany and Italy, which break down as follows: 4,000 (56%) for direct (tier 1) suppliers and 3,100 (44%) for tier 2 suppliers and below. In France, this means 3,100 indirectly supported jobs, 3,000 jobs in Germany and 1,000 in Italy.

Induced impacts: these correspond to the capacity to encourage other economic players to spend money on consumables. Household consumption, supported by the salaries paid to Covivio employees, as well as those paid by other players in its supply chain, contribute towards maintaining or creating 3,200 jobs in France, Italy and Germany. Furthermore, payments made to public administrations (generated by the taxes paid by Covivio and those of its supply chain) help to support 3,900 jobs in the 3 countries. A total of 7,100 induced jobs are thus supported: 3,400 in France, 2,500 in Germany and 1,200 in Italy.

Total impacts: these correspond to the sum of direct, indirect and induced impacts. Through its Offices and Residential businesses, Covivio thus supports 15,100 jobs in the three countries where it operates (6,800 in France (45%), 6,000 in Germany (39%) and 2,300 in Italy (16%)), generating €900 million of GDP. Therefore, for one job at Covivio, 15 additional jobs are supported.

Details of the 15,100 jobs supported by type of impact and main business segments supported (source: Utopies)

DIRECT IMPACTS

900

supported jobs (Covivio employees - approx.)

INDIRECTS IMPACTS

7,100

supported jobs along the supply chain

INDUCED IMPACTS

3,200

supported jobs thanks to household's consumption

3,900

supported jobs through expenses to public administration

15,100

total supported jobs

1 CORPORATE AND FINANCIAL SERVICES

3,900 supported jobs (26%)

2 CONSTRUCTION

3,000 supported jobs (20%)

3 EDUCATION, HEALTH AND OTHER PUBLIC SERVICES

2,600 supported jobs (16%)

4 PUBLIC ADMINISTRATION

1,500 supported jobs (10%)

5 ELECTRICITY, GAS, WATER

700 supported jobs (5%)

Summary of the socio-economic impacts of Covivio in Europe

Through its management and development activities, Covivio supported a total of 15,100 jobs in 2018 in the three countries where its teams are located - France, Germany (residential) and Italy. The companies that rent the hotels, offices or residences (individuals) have an economic activity that has a Europe-wide impact. For example, it is estimated that to date 34,800 jobs were supported by heritage hotels in the portfolio in Europe, and 301,000 jobs were supported by the occupation of offices in the portfolio in France and Italy.

Covivio undertook to evaluate the gross economic value from the operation of its hotels. Accordingly, it was estimated in early 2019 that the hotel operators holding leases with Covivio contribute to the economic life of Europe by generating some 34,800 jobs (direct, indirect and induced). As this contribution is not directly attributed to Covivio, but to its tenants, it cannot be added to or compared with the economic impacts of Covivio's management and development activities, described above.

Socio-economic impact mapping of Covivio in Europe

3.4.1.2.2 Optimising regional impact

A socio-economic footprint assessment is a tool that helps provide a better understanding of the broad impact of a business, and helps Covivio identify potential opportunities to optimise the economic benefits created for the regions in which it operates. This optimisation may happen either by increasing the quantity of impacts (notably the number of local jobs supported), or by improving the quality of the impacts (including the nature and types of jobs supported and working conditions).

Accordingly, Covivio identified two main drivers for maximising its local impact and intends to focus on these increasingly going forward:

―	the "Employment" lever: using local organisations who hire disabled people (protected sectors) or long-term unemployed people (insertion companies)
―	the "Procurement" lever: promoting local suppliers and subcontractors in the supply chain.

The signing by Christophe Kullmann, on 17 December 2019, of the Plaine Commune company-regional charter promoting employment, the local economy and the circular economy is part of this active policy. It relates in particular to the Saint-Ouen - So Pop project, delivered on 16 September 2022. The project has delivered many benefits in terms of employment, the local economy and the circular economy:

―	10% of total working hours required to complete the project were reserved for unemployed people;
―	local businesses were given preferential treatment for 25% of the total amount of works and services contracts;
―	reuse of technical floors, use of recycled paint (from unsold goods), use of crushed concrete to make aggregates (used to build roads), etc. : these initiatives have substantially reduced the building's carbon footprint
―	participation in the HQE-Performances programme and experimentation with the MFA (material flows analysis) method to accelerate the implementation of solutions promoting the circular economy.

3.4.1.3 Investing in urban life

Since 2008, Covivio has developed a partnership and collaborative policy with the charity and community sector, focused on equal opportunities, relying in particular on skills-based sponsorship, which helps to promote internal know-how.

3.4.1.3.1 Training future real-estate industry decision-makers

The Palladio Foundation was created in 2008, under the aegis of the France Foundation and actors in the real estate industry, including Covivio, to address the huge challenge of urban planning. Covivio supports this Foundation, a place for meetings, dialogue, debates and reflection, via financial sponsorship and the involvement of its managers and teams in the projects and events of the Palladio Foundation. The theme for 2023 was "(Re)-reconciling the city with nature".

Christophe Kullmann, Chief Executive Officer of Covivio, was also appointed Chairman of the Foundation's Scholarships Committee, whose purpose is to provide the younger generations with the means to carry out their training or research projects in the fields related to real estate and construction in the City. In 2023, ten scholarships worth a maximum of €10,000 each were awarded. Covivio has signed the charter of the University of the City of Tomorrow ⁽¹⁾ to lay the foundations for a new working method based on cooperation between those who design, build and govern the city, those who talk about it and those who experience it.

Since 2012, Covivio has also been participating in job forums organised by higher education institutions such as HEC (École des Hautes Études Commerciales de Paris), ESSEC Business School, ESCP Europe, EDHEC, ESTP and Paris Dauphine University in France, as well as Politecnico di Milano and Universita Boconi in Italy. For Covivio, they provide special opportunities for interchanges with potential future candidates.

In addition, a number of Covivio employees do presentations often centred on sustainable development - at various institutions such as ESTP and Dauphine University in Paris. Thus, in September 2021, Covivio participated in the organisation of the Climate Frescos at the start of the school year at ESTP. Every year, in Italy Covivio shares its practical knowledge and offers advice to students taking courses in real estate.

3.4.1.3.2 The Covivio Foundation is committed to promoting equal opportunities

Created in 2020, the Covivio Foundation's mission is to structure and strengthen the sponsorship actions the group has already been carrying out for almost 15 years now: For the past three years, Covivio has chosen to focus the actions of its Foundation on supporting actions related to projects that promote equal opportunities: access to education and training, access to work, access to housing, support for the integration or reintegration of vulnerable groups of people, at a time when 20% of 15-25 year olds suffer from isolation.

Through its Foundation, Covivio is committed to equal opportunities by supporting around 20 charities in the three countries where it operates, including, in 2023:

―	In France: Activ'Action, Article 1, la Cravate Solidaire, Démos, Refugee Food, Osons Ici et Maintenant, Wake Up Café, ...
―	In Italy: Fondazione Mission Bambini, Associazione La Strada and Fondazione Francesca Rava NPH Italia Onlus, Via Libera Cooperativa Sociale...
―	In Germany: Al Farabi Music Academy, Safe Hub (born from the partnership between Amandla and the Oliver Kahn Foundation), Lebenshilfe, Ruhrwerkstatt, TAFEL...

The selected associations benefit from financial sponsorship and skills, in particular thanks to the involvement of Covivio employees. In addition to occasional events, Covivio intends to make a concrete commitment by leading 360° partnerships and, over the year, with the above associations, it will also organise business workshops on the issues facing charities, organise certain programmes involving Covivio clients, and make spaces available free of charge.

The Covivio Foundation offers two types of financial support:

―	support over three years following Calls for Expressions of Interest launched in each country. This is the case for 11 charities.
―	one-off support over one year, granted to support a specific project.

This approach allows Covivio to focus its efforts and resources on a limited number of projects in order to offer significant support to each association and strengthen the impact of their actions.

To ensure a close relationship, a local Committee made up of employees from Covivio's various business lines was created in each country to monitor the associations supported. The local Committees are also responsible for identifying future projects to be implemented and presenting them to the Foundation's Board of Directors.

In December 2023, at the SIMI (Paris Real Estate Fair), Covivio received the "Mécénat & Solidarités dans la ville" award in the "Community commitment" category. This award, which recognises the various charitable initiatives by real estate companies and is awarded by the FEI (Fédération des entreprises de l'Immobilier), highlights the positive impact of the work carried out by the Covivio Foundation since its creation.

Covivio employees involved: focus on Socovivo Week in France and Socovivio Days in Rome and Milan

During the second Socovivio Week in France in September 2023, over 110 Covivio employees devoted a total of 478 hours to the various workshops offered. On a voluntary basis, employees were able to take part in "helping hands" missions, such as meal preparation workshops with Refugee Food; business workshops to advise the charities' teams on subjects such as energy performance certificates and communication; and coaching workshops, notably with the beneficiaries of Wake Up Café. At the end of this week, the experience made 74% of participating employees want to become more involved in charitable causes ⁽²⁾.

Two charity days with different activities also took place in September in Rome and Milan: the different activities brought together more than 80 employees, representing a total of 420 hours.

⁽¹⁾ Charlie_UniversitéDeLaVilleDeDemain_Signataires.pdf (fondationpalladio.fr).

⁽²⁾ Internal survey conducted in October 2023 among employees who took part in the initiative.

3.4.1.3.3 Activities at the heart of society

In 2020, Covivio commissioned Opinion Way to conduct a study to better identify the challenges for the Offices segment for the coming years. Published under the name "Flexibility first!", this study is described in Chapter 3.3.1.1 and available on the Covivio website. As a long-term partner of the French Association of Real Estate Directors (ADI), Covivio supports and participates in various events in the aim of jointly thinking about buildings, their uses and associated transport.

Covivio is involved in local authorities, particularly in public planning establishments (EPAs) such as Bordeaux Euratlantique and Marseille Euromed, bringing together public and private players to participate in the sustainable urban development of the region.

In Italy, Covivio has developed strong ties over a number of years with the Politecnico di Milano. In 2019, the Proptech Joint Research Center (JRC) was launched by Politecnico di Milano in partnership with Covivio and other companies operating in Milan (BNP Paribas RE, Bosch, Accenture, Edison and Vodafone). This project is dedicated to launching research into new technologies that could change the real estate professions and, most importantly, the real estate market. In 2021, two partnerships with Politecnico were signed concerning a study as part of the development of Vitae and a study of fluid mechanics modelling for the Symbiosis project (Buildings G/H) with an innovative natural cooling system for the façade based on the existing industrial chimney. The partnership with Politecnico's Proptech network was also renewed in 2021.

Covivio also works alongside the city of Paris by committing to the Paris Climate Action network, which launched the Paris Climate Action Charter. This Paris Climate Action Charter invites companies to commit to the Climate Plan, and the fight against climate change. It was updated in 2018 and signed again by Covivio, which is committed to adopting an operational action plan by 2030 and contributing to Paris's carbon neutrality trajectory.

In Germany, Covivio Immobilien is heavily involved in the life of the districts where its buildings are located, participating in cultural activities and running projects for the elderly and/or people with disabilities, in collaboration with local non-profit organisations, mainly in Berlin and the Ruhr (3.4.1.5.2). Covivio Immobilien also supports other social and societal causes, including making temporary accommodation available for war refugees; participating in the financing of corporate sponsorship programmes for schools, crèches and retirement homes; and, supporting the renovation of housing for elderly people and a social project for homeless people in Berlin. In early 2020, Covivio Immobilien entered into a partnership with the Malteser International association to support its senior tenants. The association helps elderly tenants through a 24-hour home emergency hotline and other services, such as ambulance transport and groceries, in order to maintain their independence. Covivio undertakes to make the offer known to its tenants, via letters and information in building entrances; they then benefit from a reduced-rate home emergency service. Special information events have been planned in Covivio service centres to raise awareness of this system. In line with these actions, Covivio Immobilien has strengthened its links with the Malteser association in Berlin, Dresden, Hamburg and Leipzig.

CB 21 and Covivio welcome the Vertigo solidarity race

For the past two years, Covivio has been hosting the Vertigo solidarity race at its CB 21 building in Paris-La Défense. This sporting challenge is organised by the association PLAY International, a pioneering NGO in the area of development and education through sport, founded in 1999. The founders had the deep conviction that sport is both a fundamental right and a source of solutions to society's challenges. Its main mission is to design and implement education and inclusion projects for vulnerable children and young people, using sport and play as educational tools.

In 2023, the 9th edition of the race involved some 500 participants, with PLAY International (also supported by the Covivio Foundation) receiving over €90,000 in donations.

Covivio launches We Care

With the "We Care" programme, Covivio offers a series of meetings to share its commitments with its Covivio and Wellio customers, in particular by helping them to find out about the charities supported by the Covivio Foundation. In 2023, various actions were offered to customers:

―	Participating in the Refugee Food Festival, which aims to change the way people look at refugees by showcasing their culinary heritage, helping them find jobs in the catering industry, mobilising and bringing together civil society around the table;
―	Trying a meal created by the resident Chef of the Refugee Food charity, Harouna Sow, in six of the restaurants in Covivio buildings in conjunction with catering partners (Sodexo, etc.);
―	Donating clothes, collected by La Cravate Solidaire.

These meetings are also an opportunity to invite customers to go further, for example by becoming a volunteer with the charity or by making occasional commitments.

3.4.1.4 Turning each site into a biodiversity driver

In December 2022, representatives from 193 countries at the COP15 on biodiversity signed the post-2020 global biodiversity framework, a common roadmap for the period 2020-2030 aimed at halting and reversing the loss of biodiversity. This agreement reiterates the vital importance of taking biodiversity into account for the coming decade and underlines the key role of companies in addressing this issue. It also reflects the growing development of frameworks and tools (TNFD ⁽¹⁾ , SBTn, CSRD) to support companies in their approach. Aware of its responsibility and that of its sector in the decline of biodiversity, Covivio has stepped up reflection on this major issue, aiming to formalise a dedicated strategy in 2024.

This strategy will be based on a commitment initiated in 2010, making the protection of biodiversity a major focus of Covivio's CSR and portfolio strategy, so that each site built, managed and renovated by Covivio is, as far as is possible, a lever for biodiversity.

3.4.1.4.1 Biodiversity, a key focus of Covivio's purpose

Nature is the basis of all dimensions of human life (water cycle, climate regulation, etc.) and is crucial for our economies: more than 50% of global GDP depends directly on natural resources ⁽²⁾. However, in recent decades, the decline in biodiversity ⁽³⁾ has been accelerated due to human activities. A large number of indicators reflect the collapse: in 2019, 75% of the Earth's surface was significantly altered by human action, more than 85% of wetlands were lost ⁽⁴⁾ and the size of wild animal populations decreased by 69% between 1970 and 2018. Regarding biodiversity loss, the planet's limit was crossed several years ago, well beyond that associated with climate change, a reminder that our economic development models are currently incompatible with the maintenance of living ecosystems.

The erosion of biodiversity is linked to five main pressures associated with human activities:

―	change in the use of land, freshwater and seas (e.g. reallocation of natural land due to urban sprawl, fragmentation due to the construction of linear infrastructure)
―	overexploitation of resources (e.g. overfishing, overexploitation of timber, looting of rare plants and animals)
―	climate change (e.g. GHG emissions caused by fuel combustion, deforestation)
―	pollutant emissions (e.g. fine particles, nitrogen compounds, chemical pollutants, dust)
―	spread of invasive alien species (e.g. spread of Japanese knotweed through freight transport).

Although its property portfolio is mainly located in urban areas, Covivio has a direct and indirect impact on biodiversity. The construction and building sector plays a key role in reducing biodiversity, due to its contribution to the phenomenon of changing land use and soil sealing, and also in connection with its significant consumption of materials. The extraction stage (gravel, sand, etc.) and the transformation of raw materials (clinker, etc.) accounts for a major part of the sector's impacts on biodiversity (contribution to soil artificialisation, urban sprawl, pollution, etc.) and the climate.

Based on this observation, Covivio's biodiversity policy is broken down into six points:

―	eco-design of developments and renovations by taking biodiversity into account before the start of a project: eco-friendly corridors, dealing with stakeholders' expectations and materials chosen so as to promote a circular economy
―	creation of green terraces in urban environments that contribute to mitigating the urban heat island effect
―	planting of native plant species to limit the need for watering and preserve the local fauna
―	implementation of ecological management practices for green spaces: adjustment of the frequency of mowing, gradual elimination of the use of phytosanitary products, etc.
―	enhancing the functions of green spaces for building users
―	participating in research and innovation.

To ensure that biodiversity-related issues are taken into account, two internal charters dating back to 2014 were updated in 2019:

―	a charter governing the creation of green spaces - for projects involving the development or total renovation of green spaces - and promoting compliance with labels such as BiodiverCity®
―	a charter governing the management of green spaces - for projects in operation - and making it easier to obtain a label such as BiodiverCity Life®, Eve® or EcoJardin.

A total of 155,000 m ² of Covivio office space under development or already delivered will have a BiodiverCity® or Eco-jardin label.

⁽¹⁾ Taskforce on Nature-related Financial Disclosures: TNFD

⁽²⁾ Source: "Preserving biodiversity to preserve our future" World Bank 2022.

⁽³⁾ Biodiversity covers all natural environments and life forms (plants, animals, fungi, bacteria, etc.) and their interactions. It includes three interdependent levels: the diversity of living environments at all scales, the diversity of the species that live in these environments and the genetic diversity of individuals within each species (Ministry of Ecological Transition and Territorial Cohesion, 2023)

⁽⁴⁾ Source: "Global Assessment Report on Biodiversity and Ecosystem Services - Summary for Policy Makers" (IPBES) 2019: https://ipbes.net/ global-assessment

In 2021, Covivio joined Act4nature International ⁽¹⁾ , an initiative launched in 2018 by the French association Entreprises pour l'Environnement, with the aim of involving companies on the issue of their direct and indirect impacts, their dependencies and opportunities for action to promote nature. Covivio has thus subscribed to the ten common commitments ⁽²⁾ and has set itself individual objectives, integrated into its strategy and recognised as SMART (specific, measurable, additional, realistic and time-bound) by the international Committee of Act4nature (company networks, NGOs and scientific organisations). Covivio thus made public its individual commitments at the launch of the European Business & Nature Summit in November 2021. These complement the objectives previously included in the Group's CSR action plan and provide for the use of new indicators: measurement of the impacts of developments on biodiversity by the end of 2022, net gain in biodiversity on 100% of operations by the end of 2025, etc.

In order to measure this notion of biodiversity gain both for development projects and buildings in operation, Covivio has chosen, in partnership with the research department ARP-Astrance, to develop its own indicator, capable of integrating the green spaces and their social values on the sites in operation. Covivio's CBS (Biotope Area Factor) describes the ratio between eco-socio-developable surface area (non-impervious surfaces favourable to biodiversity and biophilia) and the total surface area of the site. Thus, each type of surface is assigned a weighting according to this interest for biodiversity, with the weighting scale ranging from 0 to 1.2 (0 representing impervious surfaces and 1.2 for the most ecologically friendly surfaces). The Covivio CBS includes eight different types of surface area as well as 17 bonus elements, established from the scientific literature and existing biodiversity guidelines. These bonuses are aligned with Covivio's challenges, integrating the concepts of biophilic value, ecosystem services, biodiversity and the ecological management of green spaces. The CBS value makes it possible to compare the sites in their current state with development scenarios, or to compare, for the same site, data from one year to another.

This tool was tested at Covivio's German headquarters in Oberhausen (2 ha) and at the Majoria park in Montpellier (33 ha). The Majoria park, for example, has an initial CBS of 0.46, with already well diversified spaces in terms of habitats and species. The two development scenarios propose changes in habitats and uses without modifying open land and without replacing artificial surfaces with green spaces, enabling an increase in the CBS from 10% to 34%.

Out of five projects delivered or underway in 2022 and analysed in France, i.e. a total surface area of 18,569 m ² , exclusively in dense urban areas, the CBS is 3.3 times larger than the initial position.

Promoting biodiversity in our existing portfolio: the case of German residential

With its insect hotels, Covivio Immobilien makes a valuable contribution to environmental protection and at the same time promotes awareness of sustainability. These hotels can be set up in a wide variety of locations (e.g. in flower meadows) and are thus home to wild bees, butterflies and other insects beneficial to the development of ecosystems. Insect hotels also support hibernation during the winter months.

Covivio Immobilien has already created 18 flower meadows on its sites in North Rhine-Westphalia and Berlin, and 12 more are planned for 2024 by promoting the use of bee- and insect-friendly plants, with a particular focus on plants that are easy to maintain in the long term.

3.4.1.4.2 Towards a biodiversity strategy covering the entire value chain

In 2022/2023, Covivio carried out a diagnostic of its impacts, dependencies, risks and opportunities with respect to biodiversity, the main results of which are presented below. On this basis, a biodiversity strategy is being defined. The work carried out is based on the recommendations of the TNFD.

3.4.1.4.2.1 Main impacts of Covivio's activities on biodiversity

Objective: Analyse the impacts of Covivio's activities on biodiversity through their contributions to the main pressures on biodiversity, throughout the value chain.

The main impacts of Covivio on biodiversity were assessed with the GBS (Global Biodiversity Score) tool launched in 2020 by CDC Biodiversité. The main approach of the GBS is to use the company's economic data to express, using a single indicator, the contribution of the said company's activities to several pressures, on the direct operations and the supply chain. The indicator is the average abundance of species (MSA) per km ² ; it is a proxy for the degradation of biodiversity (1 MSA.km ² implies that 1 km ² of virgin biodiversity has been destroyed).

⁽¹⁾ https://www.act4nature.com/wp-content/uploads/2021/11/COVIVIO-VA.pdf

⁽²⁾ https://www.act4nature.com/wp-content/uploads/2022/12/A4-act4nature-international-VA-04-22.pdf

Biodiversity impacts on the value chain and by pressure

	GBS pressures	Scope 3 Upstream Suppliers	Scope 2 Electricity supply	Scope 1 Group operations	Scope 3 Downstream Clients
Use and change in use of ecosystems	Land use and change in land use in river and wetland watersheds and on land Encroachment and fragmentation	High impact	Low impact	High impact	High impact
Resource over-exploitation	Water disturbance caused by water consumption (static pressure only)	Medium impact	Low impact	Low impact	Medium impact
Climate change	GHG emissions (dynamic pressure only)	High impact	Low impact	Low impact	High impact
	Ecotoxicity (dynamic pressure only)	High impact	Low impact	Low impact	Medium impact
Pollution	Atmospheric nitrogen deposition	Low impact	Low impact	Low impact	Low impact
	Freshwater eutrophication (static pressure only)	High impact	Low impact	Low impact	Low impact
Invasive species	Not taken into account	Not assessed

This analysis makes it possible to identify the main drivers of Covivio's impact on biodiversity:

―	the supply of raw materials (particularly aluminium, cement, steel and timber) for construction and renovation activities. Located upstream of the value chain, this item accounts for around two-thirds of Covivio's impacts on biodiversity (upstream scope 3).
―	the energy consumption of tenants (particularly in hotels), located downstream (scope 3 downstream)
―	in comparison, the conversion of land associated with development activities (scope 1 - Group operations) has a lower impact and is mainly related to the footprint of the built environment, particularly by German residential, the group's largest portfolio. The low impact of this item is also due to the fact that Covivio operates mainly in already urbanised areas and that the property development activity is not predominant in the Group.

By reconciling the work of the SBTn initiative ⁽¹⁾ for the construction and real estate sectors to Covivio's activities, the main impacts are presented in the following table.

An analysis at the asset level

At the end of 2017, Covivio carried out a mapping exercise, updated in early 2020, of its building construction and operation activities to measure its indirect impacts on biodiversity. This study was carried out on the basis of a panel of the Group's core assets (144 sites across the three activities) and produced a comprehensive report summarising the results and a description sheet for sites located less than 250 meters away from a protected area. It is summarised in Covivio's 2020 sustainable performance report, published in 2021 (pages 92 and 93). The main conclusions can be summarised as follows :

―	operational sites located in or adjacent to protected or biodiversity-rich areas (Disclosure GRI 304-1). Conclusion: on criterion 304-1, Covivio's activity can be considered "Performing"
―	description of the impacts of activities on biodiversity (Disclosure GRI 304-2). Conclusion: on criterion 304-2, Covivio's activity can be considered "Performing"
―	protected or restored habitats (Disclosure GRI 304-3). Conclusion: on criterion 304-3, Covivio's activity can be considered as "Performing" to "High performing"
―	impact of the sites on the species appearing on the IUCN Red Lists (Disclosure GRI 304-4). Conclusion: on criterion 304-4, Covivio's activity can be considered as "High Performing"

⁽¹⁾ Main pressures associated to real estate and construction activities. Source: SBTN materiality matrix (2021).

3.4.1.4.2.2 Main dependencies of Covivio's activities on biodiversity

Objective: Identify the main ecosystem services on which Covivio's activities depend, throughout the value chain.

Covivio's dependencies on biodiversity were assessed using the ENCORE tool as well as the WBCSD report "Roadmap to Nature Positive, Foundations for the built environment system". This study identified which ecosystem services an activity depends on according to the global macro-sector average of its sector throughout the value chain.

Main biodiversity dependencies in the value chain and by ecosystem services (only the strongest dependencies are represented)

	Upstream	Direct Operations	Downstream
Surface water	High	High	High
Groundwater	Medium	Medium	Medium
Mass stabilisation and erosion control	High	Medium	Medium
Water quality	Not assessed	High	High
Fibres and other materials	High	Not assessed	Not assessed
Protection against floods and storms	Medium	High	High
Climate regulation	High	Medium	Medium

Overall, Covivio's activities depend heavily on several ecosystem services:

―	the availability and quality of water throughout the value chain, necessary for the extraction and manufacture of materials (cement, etc.) as well as for the smooth running of construction sites (preparation of mortar, etc.) and building operations
―	the availability of construction materials (sand, gravel, wood, etc.)
―	climate regulation and protection against floods and storms, necessary for the sustainability of assets and the safety of sites including extraction and material processing sites

3.4.1.4.2.3 Main risks and opportunities related to biodiversity

Objective: Identify the main risks and opportunities Covivio is likely to face, and assess the Company's vulnerability and/or ability to deal with/seize them.

The assessment of biodiversity risks and opportunities was based on the recommendations of the TNFD with in particular the identification of the main risks and opportunities by category (regulatory, market, etc.), after the development of two scenarios:

―	scenario 1: the transition is slow to the detriment of biodiversity and the climate;
―	scenario 2: the transition takes place quickly, in a demanding regulatory context.

For each of these scenarios, an assessment is made of the Company's ability to cope with each identified risk or opportunity.

The priority risks for Covivio are as follows:

―

risks of political transition, in connection with changes in regulatory contexts, such as: the obligation to install solar panels or green roofs on buildings; frameworks aimed at limiting urban development and protecting green spaces; the development of a carbon tax associated with an increase in the price of materials, and traceability and responsibility obligations in connection with raw materials such as the EU deforestation regulation (EUDR).

―

physical and systemic risks related to climatic phenomena or the collapse of ecosystems, such as rising water levels, rising temperatures and changes in soil stability; the scarcity of water resources that could lead to shortages or conflict; disruption of supply chains and rising commodity prices

The main opportunities identified are as follows:

―	business opportunities associated with the emergence of new markets for renovation and deconstruction as well as the sustainable design of buildings
―	financing opportunities related to these new markets as well as support for eco-friendly catering
―	opportunities in terms of the use of resources and the protection of ecosystems, particularly in terms of the use of green spaces to contribute to ecological continuity

Covivio has several assets to face these risks and seize these opportunities. In particular, the Group has a good understanding of its risk exposure through the performance of a set of diagnostics; a development model that combats urban sprawl as much as possible and promotes the energy-efficient renovation of buildings; and a series of pilot projects on key themes such as the use of bio-sourced materials or the installation of green roofs. Covivio has also identified the following areas for improvement: strengthening the deployment of Group objectives in the various countries as well as the purchasing traceability mechanisms; and the development of know-how to work on existing assets (e.g. for the creation of natural spaces, or the installation of certain systems).

List of the most probable risks and opportunities and assessment of their significance according to the scenarios.

	MAIN RISKS AND OPPORTUNITIES PRIORITISED	Significant in Scenario 1	Significant in Scenario 2
RISKS	Damage to real estate assets due to climate change (flooding, temperature, soil, etc.)	✓
	Risks related to water: local shortages of drinking water, conflicts related to water use, etc.	✓
	Disruption of supply chains and shortages of materials (particularly biosourced)	✓
	Obligation to install solar panels or green roofs on buildings	✓	✓
	Creation and increase of the carbon tax on the prices of imported materials	✓	✓
	Obligation to respect urban development limitations and nature protection regulations	✓	✓
	Obligation to comply with the EUDR regulation on raw materials	✓	✓
OPPORTUNITIES	New market for sustainable building design	✓
	Use of green spaces to contribute to ecological continuity	✓	✓
	Reduction of costs related to sobriety measures on energy and water consumption	✓
	Increased financing opportunities associated with the development of sustainable buildings or ecological restoration		✓
	New market for renovation and deconstruction		✓

Note: The most likely and impacting opportunities are not sufficiently so to be identified as significant in the first scenario.

All the conclusions of this study confirm the importance of the biodiversity issue for Covivio and highlight the themes that will need to be addressed in the Group's integrated climate-biodiversity strategy, due to be completed in 2024. Currently being defined, the latter will address the following issues in particular: the conditions for stopping artificialisation, the management of green spaces, the consumption of resources, the circular economy, the limitation of GHG emissions, and the traceability and commitment of suppliers.

3.4.1.5 Accessibility of the buildings as a driver of inclusion

3.4.1.5.1 An asset with good connections to public transport

Reducing Covivio's carbon footprint involves choosing sites that encourage the use of public and environmentally-friendly modes of transport (such as walking and cycling) by tenant clients and their employees.

Covivio has set itself the objective of having at least 95% of its buildings at the end of 2025 no more than 10 minutes away on foot (1 km) from public transport (trains, suburban trains, underground systems, buses and trams). This objective, already present in Covivio's CSR action plan for several years, now also exists in one of the commitments adopted on the occasion of the expression of the company's purpose. At the end of 2023, 97.8% of assets held by Covivio were located less than 5 minutes from public transport, and 99.8% less than 10 minutes.

To ensure that its portfolio has good access in terms of public transport, every year Covivio conducts a mobility study for all its European assets (including a representative sample for residential assets in Germany). The following graphs show the results for the different portfolios at 31 December 2023.

Covivio has defined its mobility strategy more precisely: this involves the installation of ergonomic, secure bicycle parking spaces appropriate to the size of the building, and repair and tyre inflation equipment, secure lockers, changing rooms and showers. From the design stage, Covivio includes a mobility programme, like what was done for the development of the IRO building at Châtillon. A 170-space (potential upgrade to 250) bicycle parking lot with a separate flow of vehicles and a motorised badge-operated gate has been installed for this building, which can accommodate more than 2,000 occupants and is located near the green corridor.

Accessibility of public transport

At 31/12/2023 (in Group share value)

⁽¹⁾ Core Portfolio + development

⁽²⁾ Representative panel

The in-depth study carried out in 2023 further qualified the accessibility of the transport networks of the offices held in France, Germany and Italy. The very good quality of the Group's assets is thus reflected not only by the proximity of the means of transport but also by their diversity.

―	99.4% (in Group share value) of assets are less than 500 m from public transport
―	95.9% of the assets have at least one regional or urban rail transport within 1 km and 85.7% within 500 m
―	the average distance from assets to public transport is 171 meters (weighted average in value) taking into account buses, and 277 meters without taking them into account (for assets with a mode of transport other than bus).

In the Hotels portfolio, more than two-thirds of the assets have a location rating on the TripAdvisor website of more than 90/100, thus demonstrating the quality of the locations in terms of accessibility, and also in terms of nearby restaurants, cultural venues, and places of interest.

Mobility, also a major challenge for Covivio's teams

As of 2013, Covivio's teams in Italy have benefited from four electric vehicles and free recharging stations are available for employees in Milan and Rome. In Germany, Covivio provides its employees with charging stations for electric vehicles and bicycles, and in Oberhausen has equipped the maintenance staff with electric vehicles. Also in Germany, all new buildings or major renovations with a car park with more than five spaces must provide the necessary cabling for charging stations equipment. From 2025, all buildings with more than 20 parking spaces must have a charging station.

3.4.1.5.2 Making buildings accessible for people with disabilities

Covivio pays particular attention to the accessibility of its buildings to people with disabilities and removing architectural barriers in public spaces. The legislative framework of the countries in which Covivio operates provides for technical parameters to be guaranteed: minimum width of doors, characteristics of the staircases (in particular to favour their use for the first floors rather than the lifts), size of the lifts, access ramps, toilet characteristics, etc. Covivio's developments and renovations comply with the strictest accessibility standards.

The following graph shows the accessibility scores of office buildings for people with reduced mobility.

Office accessibility for people with reduced mobility

At 31/12/2023 (in Group share value)

^* Excluding SICAF

Various solutions have been deployed for new buildings and those in operation, in order to improve the quality of life of people with visual or hearing disabilities, in particular with the installation of sound signals or light markings.

In Germany, major work has been carried out to adapt existing housing for persons with disabilities whenever technically possible, including widening of doors, installing access ramps, additional lifts or stairlifts. The Probewohnen project, launched in 2015, aims to offer people with mental disabilities the opportunity to test their autonomy in adapted housing. The Wohnen im Pott project consists of opening an outreach office in Oberhausen for people with disabilities to learn about the rights and solutions they can take advantage of in respect to housing. This multi-purpose room is open to all inhabitants and encourages residents of the neighbourhood to socialise with one another.

Inclusive housing project in the Knappenviertel district of Oberhausen

Covivio has developed an innovative form of residence in the Knappenviertel district of Oberhausen, combining assisted living with autonomy for elderly or disabled tenants.

This project is the result of the conversion of a former commercial premises into nine compact apartments of 40 to 83 m ² , fully adapted and already fully let since September. These are arranged around the open communal area, with an adjoining communal kitchen and a spacious dining area. The shared garden was designed to be inviting for everyone to spend time together.

Here, the focus is on tenants' independence and respect for their privacy, while offering day-to-day assistance tailored to their needs. Everyone can decide whether and to what extent they want to use the various services offered.

3.4.2 Collaboration with suppliers

Benefiting from a responsible supply chain is key for the Group and is a significant challenge, both in terms of the impacts on Covivio's business continuity and its reputation. The performance of Covivio and its buildings is affected by that of its suppliers, consultants and subcontractors, particularly in terms of carbon and climate transition. This issue includes the issue of building site accidents, and more generally the monitoring of measures put in place by suppliers to protect the health and safety of people working on building sites. Covivio's Responsible Procurement policy makes it possible to take these findings into account and to satisfy a certain number of:

―	obligations such as the law of 9 December 2016, known as the "Sapin 2" law, on transparency, the fight against corruption and the modernisation of economic life
―	commitments such as respecting the principles of social responsibility defined in the United Nations Global Compact and integrating them into the purchasing process
―	provisions for certifications such as HQE Exploitation or BREEAM-In-Use.

In 2023, for the second consecutive year, Covivio received recognition from CDP as a leader in terms of supplier engagement (CDP Supplier Engagement Leader A-List), putting it in the top 8% worldwide in this area. Covivio also obtained a score of 70/100 (Gold level) in its fifth EcoVadis assessment, ranking among the top 7% of companies rated by this body and thus attaining the Gold level. Covivio Immobilien GmbH, the residential activity in Germany, is being assessed by EcoVadis' network of CSR experts.

3.4.2.1 An assessment carried out by an independent third party

In 2011, Covivio was one of the first European real estate companies to set up a system for assessing suppliers and consultants. This covered both the entire supply chain for the development and management activities of the France Offices portfolio, and the company's operating expenses. This system, managed internally, was based in particular on an internal charter signed by the supplier, a clause making it possible to document the CSR commitment of suppliers, in the contracts and specifications of maintenance and works contracts. A survey questionnaire, as well as a verification of the responses to the questionnaire by an independent third party with a certain number of respondents each year.

Since 2022, the Group decided to rely on the expertise of an independent third party, EcoVadis, to extend the scope of the assessments, notably to German and Italian suppliers. This system assesses suppliers with real-time information (which is centralised on a platform), sectoral benchmarks and the support of an international organisation of 180 experts which has already assessed over 100,000 companies worldwide.

Covivio also benefits from a 360° watch (reputation, etc.), a system to prevent corruption risks and assess suppliers in accordance with the Sapin 2 law, with the aim of having a global vision of integrity, particularly with regard to suppliers and advice.

Covivio's Responsible Procurement Policy is deployed by means of three tools:

―	Covivio's Responsible Purchasing Charter promotes the principles of the Global Compact, the Diversity Charter, the International Labour Organisation as well as those of the Covivio Ethical Charter (3.6.2.1). The latter aims in particular to fight against corruption and money laundering, anti-competitive practices, as well as bad environmental practices (products used) or social practices (non-compliance with regulations). Covivio's Responsible Procurement Charter sets out its 11 CSR principles, notably in relation to the UN's 17 SDGs for 2030;
―	a survey questionnaire on the CSR and ethics practices of suppliers with orders of over €200 thousand excluding tax for "real estate" expenditure (purchases of services, works, studies contributing to construction, renovation, facilities or property management, etc.) and €50 thousand for "non-real estate" or "corporate" scopes (purchases made by support services and by Wellio). The following are excluded from this process: condominium management, tax, notaries, duties and royalties. The assessment carried out using the EcoVadis platform covers 21 criteria in four main groups: environment, social and human rights, ethics and responsible purchasing. The analysis of the supplier's results can be shared with other companies, if the latter accepts it. The analysis indicates its strengths and weaknesses and suggests areas for improvement in terms of CSR; but also offers them the opportunity to follow online training on CSR topics.
―	a CSR clause making it possible to contractualise the CSR commitment of suppliers, in the contracts and specifications for maintenance and works contracts. In Italy, the Property Management team has included green clauses in maintenance contracts, including waste management, the use of environmentally friendly materials and cleaning products, etc. Similarly, in Germany, most of the products listed (materials, equipment, etc.) by Covivio Immobilien benefit from a stringent German label, guaranteeing respect for the environment and the health of users. These guidelines were reviewed in 2020, in particular to incorporate the environmental recommendations linked to the portfolio's HQE certification for buildings in use (HQE Exploitation). Finally, a clause on the fight against corruption has been included in the new contracts and specifications signed in France.

The results of the questionnaire show a correlation between the size of the companies and the scores obtained, due to different levels of maturity in terms of CSR, but also to heterogeneous financial and human resources. The larger the company, the more CSR issues are taken into account. Large companies have formalised their policies more and obtain more labels/ certifications, while small companies act more informally. Social issues, and in particular QLW, are generally taken into account by companies of all sizes, and societal actions a little less. There are also many disparities in environmental issues even if certain unavoidable issues, such as waste management or the responsible supply chain, are taken into account.

At the end of 2023, the second year of experimentation, 170 French/German/Italian suppliers were assessed by Ecovadis, in addition to 16 international suppliers (multinationals) and 36 in the process of responding. Of the top 186 suppliers assessed, the average score was 62.6/100, while the EcoVadis average for the sector is 46/100. In France, the suppliers assessed by EcoVadis represented, at the end of 2023, 45.3% of the expenses incurred by the business lines as well as corporate services.

Percentage of suppliers responding positively to these items on the Ecovadis questionnaire (selection of actions)

In 2023, the number of suppliers taking action on energy consumption and greenhouse gas emissions increased compared to 2022. At the same time, the proportion of suppliers with an anti-corruption policy is slightly down. It should also be noted that more than half of Covivio's suppliers already rated have themselves used audits and/or evaluations of their suppliers on CSR issues. Finally, 47% of Covivio's suppliers have a responsible purchasing policy and 45% are signatories of the Global Compact.

The platform developed by EcoVadis is used to characterise performance by company, company size, geographical area and business sector. For example, the graph below shows a number of responses provided by Covivio suppliers operating in the construction sector.

Focus on construction - Ecovadis answers

Since 2015, Covivio has been a signatory of the Responsible Supplier Relations charter (RFR - national initiative led by the State). Signing this charter is a milestone in improving relations between customers and suppliers and promotes the dissemination of ethical purchasing practices in relation to suppliers. An internal mediator, the Sustainable Development Director, represents the Group in managing any potential disputes with suppliers. There were no disputes in 2023.

3.4.2.2 Construction site accidents

Covivio has implemented monitoring of accidents across all its development and renovation operations. On all the building development projects conducted in Europe, Covivio has not reported any deaths among its suppliers and subcontractors. The following table presents the various data collected on construction sites under development in France and in Italy during 2023.

Accidents on developments and renovations in France and Italy in 2023

(Supplier data)

Total number of hours worked on the sites	507,000
Number of lost-time occupational accidents	2
Number of lost working days	97
Accident frequency rate	3.95
Severity rate	0.19

The average figures for the construction industry as calculated by the French National Health Insurance Fund, are 31.1 and 2.4 for frequency and severity respectively (2021 accident figures). The data published by Covivio was collected on three French projects and one Italian project delivered or underway in 2023.

3.4.2.3 Supplier CSR risk mapping

In 2020, a study was initiated to determine the main CSR risks of the Covivio supplier panel in France, Germany and Italy. If they are poorly managed, purchases, or even a supplier chain, could have negative impacts in terms of reputation and activity for Covivio, as well as for its stakeholders: tenants, suppliers themselves, etc.

Methodology:

Several purchasing categories were determined in each of the three countries, based on the expenditure for the 2019: nine in France, seven in Italy and six in Germany. The categories common to each country are: telecommunications, maintenance, design/consulting, major works and insurance. The Small Equipment and Major Equipment purchase families are specific to France, and Occupant Services and Operating Expenses are specific to France and Italy. For each of these families, two separate analyses were carried out:

―

an analysis of the context of the purchasing family: risk of supply chain disruption, possibility of alternatives, possibility of influence of suppliers, media exposure, expectations of the main stakeholders, etc.

―

an analysis of the main families of CSR risks:

―	environmental risks: energy consumption, CO ₂ emissions, biodiversity, pollution, etc
―	social: health/safety, quality of life at work, respect for human rights, etc
―	clients: well-being, data security, etc
―	ethics: corruption, money laundering, etc
―	regional: nuisance for local residents, economic development, etc.

The risks analysed are the residual risks remaining after the implementation of specific actions and measures. The interviewees had to quantify these various risks on a scale ranging from non-existent to critical, including limited, significant and major, based on their experience as buyers. The results of this study were as follows: in France, perceived CSR risks are generally limited because they are managed internally. The environmental risk is the most significant overall. Social and Client risks are also not to be neglected, respectively for the major works and Technical Consultants/Consulting families. In Germany, it is the risks related to business ethics that are perceived as the most important, and in Italy those related to local development. The results therefore differ from one country to another.

The chart below shows the categories of purchases studied according to their respective levels of CSR risks (average of each of the risks mentioned above), by cross-referencing them with the expectations of stakeholders with regard to each of the categories. The higher the point on the graph to the right, the more significant the expectations and risks. The higher the expectations of stakeholders, the greater significance of the final risk to be managed, because it will not only affect Covivio, but also its ecosystem. The Major Works and Maintenance purchasing families are identified as the most at risk in terms of CSR and those on which stakeholders have the most expectations. The risks are mainly environmental (waste, pollution) and social (including health and safety of people). Ethical risks were also raised, as well as risks likely to have an impact on the activity of tenants (notably related to on-site maintenance, for example). These categories can give rise to specific actions. The other families identified as having risks to reduce are Insurance and Technical and consultants/Consulting firms, requiring specific actions.

Prioritisation matrix/CSR risks and stakeholder expectations

3.4.3 Collaboration with clients

Covivio has grown by building and developing strong ties with its main stakeholders. Its business necessitates a multitude of relationships with different stakeholders, both private and public, and of varied sizes and sectors (3.2.3.1). As the Group's success is at least partly based on the quality of relations with external stakeholders (clients, financers, local authorities etc.), these are now deemed to constitute a risk, which has been analysed and found to be very well managed. Specific strategies have been put in place to better meet expectations (3.2.3.2) in particular those of customers, suppliers and advisers (3.4.2). Above and beyond the quality of these relationships and the trust that is built through structural partnerships, Covivio sees cooperation with its external stakeholders as a driver of innovation and growth.

3.4.3.1 A strategy of long-term partnership and optimisation of customer satisfaction

Covivio favours a long-term partnership strategy with its clients, shareholders and suppliers, and in the context of its initiatives with local authorities and non-profit organisations.

Constantly seeking to improve the satisfaction of its clients, and given the rapid changes in working methods and practices, Covivio continually strives to identify their strategic challenges and anticipate their needs and expectations. Full control of the real estate chain, a service-based approach and the design of increasingly "tailor-made" real estate enable Covivio to continually enhance the client experience offered and the user experience within its buildings.

Driven by its hotel experience and client feedback, Covivio offers its clients five areas of service:

―	Well-being and health: The ergonomics of Covivio buildings are designed based on the most demanding criteria in terms of space, flow and furniture. The comfort in terms of light, acoustics, or even the olfactory ambiances promote serenity and concentration, just like the rooftops, terraces, greenhouses and patios. Since 2023, health teleconsultations have been tested on two sites, thus supplementing the existing offering in the area of well-being and health services.
―	Mobility: The soft mobility journey of users is integrated from the design phase of buildings. The vast majority of Covivio's buildings are located in city centers or in very well-connected hubs. It only takes a few steps to reach the bus, tram, metro or self-service bicycle station. This accessibility promotes public transport and soft mobility and reduces clients' and Covivio's carbon footprint. 97.8% of Covivio buildings are located less than 500m from public transport; the objective is to increase this ratio to 100% by 2025.
―	Catering: 90% of the multi-tenant office buildings held by Covivio in France have at least one catering offer. These restaurants can serve from 150 to 1,000 meals per day, always with the same level of quality. Service providers are selected according to very strict criteria: quality and reliability of their CSR policy, in particular their supply of fresh and local products, the fight against food waste, and more generally the quality of the consumer-employee experience. In 2022, 85% of Covivio clients say they are "very/somewhat satisfied" with the quality of the service providers selected in this way.
―	Certifications and labels: 100% of office buildings held in France are certified for construction and/or operations with various certifications such as HQE, BREEAM and BBCA. Nearly 80% of new office projects in France are the result of refurbishment, which avoids urban sprawl and soil artificialisation. Planted areas, as often as possible in the ground, are managed according to a biodiversity Charter integrated into the building's specifications. In total, 155,000 m ² of offices have the BiodiverCity ^® or EcoJardin label. It should also be noted that, since the end of 2023, Covivio has been testing the BiodiverCity ^® Life label on two buildings in operation. The CSR policy was supplemented in 2023 by the launch of the ECO-WATER programme on the Offices portfolio in France in order to reduce water consumption in these buildings by actively combating leaks and optimising water management within of our buildings.
―	Smart building: The connectivity of our buildings is R2S or Wiredscore certified, the highest standards in this area. Connected objects (sensors, presence detectors, etc.) and metering in the wider sense are integrated into the Building Management System (BMS) to ensure the comfort of use for employees or service providers, and reduce the carbon footprint through a more rational use of resources.

Covivio's partnership DNA enables it to establish a relationship of trust with its stakeholders and in particular its clients. Covivio also relies on the experience of its teams to meet the expectations of companies, which increasingly want flexibility, agility, listening and advice from their lessors. Each client therefore has a single contact person, available and responsive to answer their questions and expectations. In the France Offices portfolio, for example, 94% of clients (survey carried out in late 2022) say they are satisfied or very satisfied with the availability of Covivio's teams. Clients' employees are now living more and more "hybrid" work experiences and wish to live an inspiring experience in their workplaces, which implies attractive, flexible, reversible and scalable common spaces, as well as constantly evolving services. To ensure this, the range of services offered is co-defined and co-constructed with clients and also strongly anchored in the local ecosystem. The Pro-Working Wellio offering is an integral part of this approach, with its flexible à la carte spaces and services; it enables Covivio to offer its clients hybrid offerings combining contractual and service formats. More generally, spaces and services must give meaning and added value to being at the office. Covivio also supports its clients to identify areas for improvement, optimise the existing offer, imagine new solutions, and integrate new regulations and challenges such as the tertiary decree in France and energy efficiency measures. Covivio supports its clients and service providers by communicating very early on the implementation of these regulations and by proposing support and deployment mechanisms and proposals for relevant actions.

For several years, Covivio has regularly conducted targeted satisfaction surveys among its customers. As a reminder, a satisfaction survey was conducted in France in 2019, at the initiative of Covivio, with 1,300 end users, in order to better define the range of services to be used in its buildings. This survey was repeated at the end of 2022 among employees in over 265 Covivio and Wellio multi-tenant buildings located in France and Italy, to closely analyse their new working habits, ensure the relevance of the spaces and services available to them and then develop the offering with a target in mind.

Since 2022, a common approach for measuring customer satisfaction was structured at the European level:

1) flash surveys that measure, using very short questionnaires, the level of customer satisfaction over time, particularly during visits to the premises and the preparation of annual Committees;

2) a survey of decision-makers conducted every two years;

3) a survey on employees of clients to understand in more detail their level of satisfaction with spaces, services and their changing expectations. This study is conducted every two years;

The survey of decision-makers is interspersed with that of employees, providing feedback from customers each year and thus providing continuous updates to the service offering.

To structure these surveys, Covivo uses the expertise of Opinion Way and Kingsley, recognised experts. In the field. The latest global office portfolio-wide survey in Europe revealed a satisfaction rating of 3.9/5, well above the Kingsley index.

In addition to these surveys, the Partnership Committees and annual meetings with clients, as part of the budget and CSR measures, remain a key way for the teams to understand clients' needs and adapt the offering accordingly. These client Committees take place at least twice a year in France, for all properties. These meetings involve Covivio building tenants as well as clients of Wellio spaces. They represent a customer base of more than 300 customers in France.

In Germany, Covivio Immobilien also has close knowledge of its customers' expectations thanks to around thirty local branches and a telephone line available to tenants so they can report any requests or malfunctions concerning their accommodation. An emergency number is also available seven days a week, in order to implement the appropriate solutions as quickly as possible. In 2019, an app was rolled out for German tenants, giving them access to information related to their home as well as a number of online services.

For the sixth consecutive year, the business magazine FOCUS-MONEY analysed the practices of the main housing companies in Germany. Conducted in 2023, an online survey asked 1,900 tenants from 26 major housing companies about the services of their landlord over the last 24 months. Covivio was among the top seven landlords in the overall assessment (including four public companies), obtaining the overall rating of "Very good". In the six categories examined, a total of 32 characteristics were assessed: "equitable assistance to tenants", "equitable service to tenants", "equitable rental costs", "equitable residential ownership and landscaping", "sustainability" and "fair housing service". Emphasis was placed on the strengths, namely the condition and facilities of apartments, particularly in terms of accessibility, ease of contacting Covivio customer service and the appropriateness of rents. This trophy rewards Covivio's customer-centric strategy. Covivio also holds regular meetings with customers and prospects to talk with them about the problems encountered and get their feedback. These meetings are essential for Covivio in order to inform its discussions and better define its service offering.

3.4.3.2 Making a success of the environmental transition together

Covivio is aware of the need to involve its partners (clients, suppliers, etc.) to ensure the success of its actions in terms of environmental transition, particularly for its 2030 carbon footprint target (3.3). "Build sustainable relationships and well-being": Covivio's Purpose reflects this goal and its expertise in this field.

By putting in place different actions, such as environmental annexes and sustainable development Partnership Committees, Covivio has laid the foundations for a relationship based on effective and constructive dialogue, in order to optimise the environmental performance of its buildings. As part of its special relationship with each tenant, Covivio has been organising Sustainable Development Committees in France since 2010. The Committees have facilitated and anticipated the inclusion of environmental annexes in 100% of leases for more than 2,000 m ² of office or retail space in France. Other leases, which are not subject to this requirement, also benefit from annexes, and this formalises the parties' commitment to CSR including energy, carbon, water, waste, transport, biodiversity, etc. This dialogue facilitates HQE Exploitation or BREEAM In-Use certification, selected in a process involving tenants. They also facilitated the implementation of the Eco Energie Tertiaire system (tertiary decree) as well as the actions related to the energy efficiency plan.

In 2017, in Italy, Covivio drew up a Memorandum of Understanding (MoU) containing environmental clauses for tenants who wished to sign up. As such, the parties are invited to cooperate in order to identify any solutions and measures that could be deemed useful, appropriate and/or necessary for the purpose of improving the building's energy efficiency throughout the term of the lease. This document is now available to all new tenants, supplementing the "green clause" on the energy efficiency of buildings included in all leases.

To assist the residents of Covivio buildings in Germany and raise awareness, a welcome booklet is provided to them when they move in. It is available on the website (www.covivio.immo/ mieterhandbuch/). It contains information on aspects such as the proper use of the heating system and selective waste collection, as well as tips to reduce the energy consumption of the housing unit.

The tenants of buildings of the Covivio Hotels portfolio have all implemented proactive policies to reduce their expenditure on water and energy, reduce the amount of waste they generate and their ecological footprint, strengthen their ties with their stakeholders, and be acknowledged as responsible and committed players when it comes to the major environmental and social challenges. Their own customers, both private and professional, are also increasingly demanding in terms of organic, healthy food and ethical products and services.

Covivio Immobilien supports its tenants to reduce their energy consumption

Covivio Immobilien has launched an energy saving awareness campaign for its tenants in cooperation with the city of Oberhausen and the North Rhine-Westphalia Consumer Advisory Centre ⁽¹⁾. In a free online seminar broadcast on 15 July 2021, tenants were advised on easy ways of reducing their electricity consumption at home. By offering them the loan of an electricity meter, tenants were able to assess their own consumption in relation to average values and correctly interpret the energy information on the new devices.

⁽¹⁾ https://www.Covivio.immo/press/Covivio-und-verbraucherzentrale-nrw-in-oberhausen-strom-sparen-leicht-gemacht/.

3.4.3.3 Along with art, Covivio buildings are to be experienced and visited.

Convinced that art contributes to the identity of a place and to the construction of a common space while stimulating exchanges and creativity, in 2018 Covivio joined the "1 building, 1 work" programme, placed under the auspices of the French Ministry of Culture. A programme that commits its members to ordering or buying a work of art from a living artist for some of their buildings, thus supporting contemporary artistic creation in compliance with best practises for the artist profession. Art has thus become obvious for Covivio, which adopts a global and committed approach at the Group level in order to develop a strong marker on its assets, facilitate the meeting between art and city users and create unifying common areas. Covivio encourages the emergence of artists who respect the environment in their creative process.

An approach that is deployed in its main buildings, new or renovated, whether they are offices, hotels or housing units, in France, Italy and Germany. From Marseille to Milan to Berlin, from street art to the design of a monumental work, there are already 20 works enriching Covivio's portfolio and helping to create connections and a variety of experiences.

For example, Pablo Valbuena, a Spanish artist who lives and works in the south of France, has created a monumental work called "Modulation" in Paris 17 for the Stream Building developed by Covivio. Inspired by the modular structural framework of the Stream Building, a mixed-use and virtuous building, the artist has created a light installation that is transformed in real time thanks to an algorithm. The wooden exoskeleton of the façade thus becomes a large three-dimensional screen whose pixels are luminescent electrodes powered by the building's solar panels. Modulation was designed as a public clock, marking the change of seasons. Every day, its rhythm adapts to the solar cycle, according to the rising and setting of the sun.

Another example is the "Days" work of art, a mural designed for Wellio Duomo in Milan by the up-and-coming artist Lorenza Longhi, who won the Covivio award in the category reserved for emerging artists, at the Miart 2023 fair. The work evokes the slogan "Incredibly Global, Incredibly Private", taken from an advert from the 1990s. The text, isolated from its original context, calls into question the very nature of the building in which the work is located, and the way in which the limits of our private space are transformed and intertwined with the spheres of work.

Covivio, support for artistic creation and dissemination in the regions

As part of the artistic consultation conducted for its future Paris head office, Covivio collaborated with the Regional Department of Cultural Affairs of Paris IDF (DRAC). Responsible for the cultural policy of the State in the region and its departments, the DRAC has supported Covivio in the sourcing of a dozen national artists whose profiles, worlds and inspirations could correspond to the location concept. High-quality and constructive support that enabled Covivio to identify emerging talents in the Paris region.

Art at Covivio also aims to contribute to the visibility and attractiveness of the regions. During the summer of 2023, Clichy and Paris 17 exhibited in their streets the plastic work with the poetic and offbeat influences of Philippe Katerine. Supporting the "Mignonisme" exhibition, and in collaboration with the city halls of Paris, Paris 17 and Clichy, this sponsorship by Covivio amongst others met the following objectives:

―	to enhance Greater Paris by bringing together Paris 17th and Clichy on the occasion of "Invasion Périphérique", an artistic journey between the two cities leading to a free institutional exhibition
―	to transform and revitalise Porte de Clichy after many years of work and nuisance to users and residents
―	to give access to an artistic event open to everyone, 24 hours a day, in the public space
―	to showcase a popular artist's quirky, humorous work, appreciated by the general public.

3.5 Social policy: European human capital that creates value

Convinced that long-term success is based on an ambitious and future-oriented human resources policy, Covivio strives, on a daily basis, to create an environment where its women and men can develop their full potential.

In the different positions and jobs within Covivio, levels of expertise and skill play a decisive role at all levels. Attracting the best talent is not enough, however, as such talent must also be retained and developed, which involves monitoring the career path of each person. Identified as a major CSR risk following the risk mapping carried out by Covivio, the "Skills/Attractiveness/ Diversity" issue covers the various aspects related to the importance, for the sustainability of Covivio's model, of retaining and developing talent while conveying strong values of equality and inclusion (3.5.1). Additional insights into employer-employee dialogue and exemplary practices complete this presentation in section 3.5.2.

In a difficult macroeconomic context for the real estate sector, 2023 was marked by a strong commitment from the teams to the Group's performance. The development of European human capital is even more anchored in the sharing and alignment of best practices in Germany, France and Italy. The Engagement Barometer, conducted every two years by the Kantar institute on all European employees, in its 2023 edition (significant participation rate of 83%) testifies to the feeling of belonging, trust and the quality of everyone's working conditions.

Engagement barometer: focus on the main European results

Figures for team commitment and pride in belonging did not disappoint: 93% of employees say that their work is interesting, and 85% of them are satisfied with their job, i.e. 12 points higher than the benchmark of the Kantar Institute for private companies. Confidence in the Group's strategy and management are maintained at high levels: 78% of employees say they have confidence in the management team (+15 points compared to the benchmark) and 83% in their direct line manager. 94% of employees say they are optimistic about Covivio's future.

Organisational efficiency within the Group is particularly praised in this edition: 81% of employees say that decisions are made quickly and 80% praise the speed of their implementation.

There are also very positive figures regarding the quality of life at work: 90% consider the working atmosphere to be good within their team and 80% say that they have a good work-life balance. 91% of employees are satisfied with their material working conditions.

The Human Resources (HR) policy developed by Covivio revolves around four action areas that are essential to the momentum of the 2020-2025 objectives detailed in this chapter, namely:

―	professionalisation and the pursuit of excellence at every level
―	a fair remuneration policy, directly linked to performance and achievements
―	exemplary management at the local team level
―	a transparent and constructive social climate.

At 31 December 2023, Covivio employed 1,040 people (1,054 in 2022): 303 in France (309 in 2022), 101 in Italy (104 in 2022), 632 in Germany (637 in 2022), 3 in Luxembourg and 1 employee in Spain. The figures below concern the 1,036 employees located in the Group's main countries: Germany, France and Italy (Luxembourg and Spain-based employees are operationally attached to these main entities).

Located exclusively in the European Union, Covivio employees benefit from a favourable social model stemming from the welfare State. Health, safety and working conditions, working schedules, rights to paid leave, mandatory training, protection in the event of job loss or illness, minimum wage, gender equality, freedom of association, employee-employer dialogue, right to disconnect, etc. All these are areas in which the European Union, at the instigation of the founding nations of France, Germany and Italy, defines minimum standards guaranteeing the protection of workers on its soil, and to which Covivio subscribes, improving them.

While some aspects are handled locally (including recruitment and the negotiation of agreements) in view of local practices and regulations, several others reflect shared objectives and values across the Group and are similarly deployed in all three countries. Diversity, dialogue, professional development, quality of life at work, work/life balance and prevention of all forms of discrimination are among the common concerns that underpin Covivio's HR policy on a pan-European basis.

Covivio did not use any form of partial employment or downsizing in 2023 and does not foresee any restructuring plan leading to redundancies for 2024 in France, Germany or Italy.

HR governance at European level

Each local platform has its own Human Resources team, in order to offer a service that meets the needs of the operational teams as closely as possible, for all their social issues. Common rules and ambitions are nevertheless defined at Group level, in particular in terms of employer brand and integration, management training and development, professional equality between women and men, quality of life at work, compensation and employer-employee dialogue. The Group HR Committee, composed of the Chief Executive Officer, the Deputy Chief Executive Officer, the Corporate Secretary and the Human Resources Director (who sits on the Italian and German HR Committees), is responsible for the operational deployment of these principles.

Key social performance indicators (at 31 December 2023)

1,036

EMPLOYEES IN FRANCE, GERMANY AND ITALY

"SKILLS/ATTRACTIVENESS/DIVERSITY" RISK

93.2%

EMPLOYEES ON PERMANENT CONTRACTS

15

INTERNAL MOBILITY

88%

FULL-TIME EMPLOYEES

50%/50%

MEN/WOMEN PERMANENT EMPLOYEES IN EUROPE

26

PARTICIPANTS IN EX-AEQUO PROGRAMME

4.2%

STUDENTS ON APPRENTICESHIP CONTRACTS

100%

OF EMPLOYEES COVERED BY A SECTORAL AGREEMENT

85

PEOPLE RECRUITED ON PERMANENT CONTRACTS

3.5.1 Challenges related to skills, appeal and diversity policy at Covivio

Covivio conducts its business in an industry in which human capital is a key factor to the success of the company. The challenges related to skills, attractiveness and diversity were identified in the CSR risk mapping as major issues for the company. The different initiatives in these domains are described below, with an overall approach set at the European level, whilst preserving local autonomy, in order to guarantee better flexibility and responsiveness for these three entities: Economic and Social Unit (ESU) France (Offices and Hotels), Italy (Offices) and Germany (Residential and Offices).

The risks associated with human capital are related to potential losses of skills and know-how in the event of high turnover or low capacity to attract and retain talent; a lack of development of existing skills in the event of a lack of investment in training; psychosocial disorders (unease at work, occupational illnesses) if not prevented or treated; or discriminatory practices in the absence of awareness-raising and whistle-blowing mechanisms, leading to a high reputational risk.

3.5.1.1 Strategic HR guidelines for performance

3.5.1.1.1 A recruitment policy that supports the strategy

Covivio's European headcount was slightly down compared to 2022 (-1.33%), with a total of 1,036 employees at 31 December 2023, compared with 1,050 at the end of 2022.

In 2023, the number of employees on temporary contracts in France still represented a very small proportion of the workforce (0.7% at 31 December). In Italy, the share of fixed-term contracts is also very low (less than 1% at the end of 2023), after 2022 which saw a greater use of short-term contracts due to an additional workload related to the deployment of SAP. In Germany, the use of temporary contracts is traditionally more frequent, but remains limited and is down compared to 2022 (3.8% of the workforce at 31/12/2023 compared to 4.6% at the end of 2022).

The proportion of employees on permanent contracts has thus stabilised at a high level (accounting for 93.2% of the total workforce at end-2023) testifying to the emphasis placed on talent retention and supporting the Group's future growth.

Recruitment needs are studied and determined by General Management according to the priorities and multi-year business challenges. Mid-year and end-of-year appraisal interviews as well as "People Reviews" are used to measure both employees' workloads, the depth of skills required, their long-term allocation, and any changes in skills that need to be addressed. These components are used to outline a recruiting plan, which is reviewed monthly in all three countries. The recruitment process at Group level is closely watched and aims to assess the candidate's professional skills and personality. Managers and HR work hand in hand to recruit the most relevant resource.

Change in the number of employees

Through four interviews, intended to be discussions, candidates have the opportunity to obtain a practical overview of the company and its strategic challenges. An interview with the General Management is organised at the end of the recruitment process, designed as the first step of a true working partnership. In France and in Italy, an English test is conducted during the process, in line with the Group's requirements for European integration. In Germany, the level of English is assessed orally during the recruitment process for positions exposed to Europe. A personality questionnaire is also offered to candidates to serve as a starting point for discussing their behavioural skills during the HR interview. Summaries of their personalities and motivations are automatically generated after completing the questionnaire. In 2023, the Germany HR Department continued its efforts to develop the employer brand, in particular through the publication of a LinkedIn page dedicated to the German market, and by the dissemination of a video campaign show-casing the quality of life at work offered by the company. This was also illustrated by the fact that it won the Top Company 2023 award, awarded by the Kununu social network.

The stages of the recruitment process have been harmonised across Europe:

Manager interview and HR interview (together or separately)

N+2 Manager interview

Executive manager

In 2023, Covivio hired 85 people on permanent contracts, including 24 newly-created jobs (compared with 46 in 2022). After a large number of new hires in 2022 linked to new activities (co-working, residential development in France, Offices in Germany), new hires in 2023 consisted of replacing departures and consolidating existing expertise in the Corporate and financial business lines in particular.

Thus, a new Accounting and Consolidation Director based in France has joined Covivio, as have an Accounting Manager, a Senior Financial Controller and a Consolidator. The France Offices Department also welcomed a new Administrative and Financial Manager. In Italy, the Finance Department was temporarily strengthened to support the SAP project, and a temporary contract signed in 2022 for the same reason was extended in 2023.

On the office real estate side, in Italy, two asset manager positions have been created under permanent contracts, now including a necessary environmental dimension, and a real estate development position (these hires are extensions of temporary reinforcements previously made). In France, the postponement of certain Office development projects has led Covivio to adjust its workforce in real time, pending an operational recovery. Four voluntary departures of project managers and directors were not replaced in 2023. In terms of asset management, the reduction in the size of the portfolio also meant that a departure did not need to be replaced. On the other hand, the operational teams operating the co-working offices continued to recruit, in a context of high turnover on the market.

In Germany, 2023 was marked by the ramp-up of a specialised Offices team, to support the design of offices combining flexibility, services and performance. 35% of job creations in Germany were in the Offices business, both in real estate development (notably the Alexanderplatz project), in asset management, and in letting and product marketing. Turnover in residential real estate development functions remained high, particularly in Berlin. 65% of departures in Germany concern teams from Berlin, which is linked to a big shortage of expertise in this employment area.

In each country of the Group, employees receive regular HR support during the onboarding period. On arrival, a welcome booklet is distributed to each employee. This booklet contains key information about life in the company (onboarding process, remuneration structure, time and absence management, etc.). In France, once recruited, every new employee follows an onboarding process that consists of several systems: an e-learning module "120 minutes to understand real estate", a mentoring programme called "Buddy Programme", an integration day involving representatives from each department who present the essential aspects of their business, and an astonishment report to the two members of the Management Committee. The onboarding process ends with a friendly moment with the Chief Executive Officer. In Germany, the time between the signing of the contract and the first day of the employee is the subject of special attention with the sending of a welcome card. Then, during the first week, the employee receives training (GDPR, security rules). An induction day will be scheduled from 2024. In order to ensure the smooth integration of new hires and trainees, tours of new properties or cities with interesting features for the residential sector are regularly arranged. In France, new employees are given priority on site visits organised every quarter for the Group's employees.

The Employer Brand policy implemented in 2019 as part of the change of identity is also continuing, at the European level, via the coordination of the three ambassadors already created. Lending their image and voice to the Covivio Employer Brand, these employees represent the Group and its business lines on social media as well as in forums organised by schools. A fourth wave of ambassadors was set up at the European level in 2023. All classes combined, 68 ambassadors contribute to Covivio's outreach internally and externally in Europe, through participation in school forums or after-work events organised with students. They also play an active role on social media and share Covivio's posts and job offers within the Group. To do this, they are regularly trained in the use of social networks and have a dedicated resource platform (Teams group and ambassadors booklet).

3.5.1.1.2 A policy of appeal and jobs for young talents in a context of increasing turnover

Traditionally focused on the development of talent, Covivio confirms its "incubator" policy with the recruitment of young people (under the age of 30) on permanent contracts (almost 30% of permanent hires at Group level and 40% in France) and apprenticeships, and a large level of profile-raising activity schools and students. In France, Covivio took part in four physical forums in 2023 (ESTP, HEC, ESSEC, EDHEC) and a virtual forum on work-study placements with the Jobteaser platform. It also continued its specific partnership with ESTP, enabling the Group to be involved with students from the moment they start at the school (sponsoring the integration seminar, for example) and during partner meetings.

In Italy, Covivio took part in forums organised in Milan by Politecnico and the Università Bocconi, and organises events such as a round table on the real estate professions, or a case study aimed at developing Politecnico's students' soft skills. In Germany, Covivio is deepening its partnerships with EBZ (Europäisches Berufsschulzentrum), HWR (University in Berlin), Technische University (Potsdam/Cottbus), and IU (University in Essen), and makes itself known via the Uni-Now platform, an application deployed in German universities. A new partnership was also created with Fachhochschule Bouchum, to enable students to work at Covivio during their studies. In 2023, the Chamber of Commerce and Industry in Germany rewarded the apprenticeship programme implemented by Covivio.

The HR teams of the three countries also organised meetings with students to develop the employer brand. In Germany, students visited the Alexanderplatz site and in France, Covivio welcomed the Master Management Real Estate (MMI) class of ESSEC, sponsored by Christophe Kullmann, for its graduation ceremony.

The European Graduate programme launched in 2020 continued in 2023 with the recruitment of an employee. Young people on the Graduate programme benefit from an 18-month course consisting of three rotations, one of which must be in another Group country. As an integral part of Covivio's recruitment and development policy, the programme reflects Covivio's strategy of generating an incubator of talent that is entirely European. At the European level, employees under the age of 30 represent 16.6% of the workforce.

In addition, Covivio is pursuing its work-study policy despite the effects of the crisis, giving 43 students an apprenticeship or professional training contract within the Group. In addition to the 43 apprentices present in Europe at 31 December 2023, 16 interns under contract in France, 4 interns in Germany plus 91 students on temporary contracts of a maximum of 20 hours per week, in accordance with German legislation, were added over the year (not counted in the workforce). Students are also hired in France as part of the Passerelle partnership with the Lycée Louise Michel de Bobigny, for summer jobs (6 in 2023). In France, two employees on work-study contracts or internships were recruited on permanent contracts. In Germany, four young apprentices completing their training in 2023 were hired on temporary contracts.

These students are systematically assigned a supervisor within the company, who is a professional recognised in their field, and they are monitored throughout the year by the Human Resources Department. An induction day specific to work-study students was organised in France in 2023, in the presence of representatives of the Management Committee. In addition, the Human Resources Department ensures the smooth running of apprenticeships in terms of tasks assigned, integration into the company and workload through a mid-year interview with each apprentice. In 2023, Covivio benefited from the "Happy trainees" label, issued by the "Choose my company" body, on the basis of an anonymous survey sent to all interns and apprentices present in 2022. With a recommendation rate of 96.8% and an overall score of 82.2/100 (4.4/5 in 2022), Covivio obtained the certification for the fifth consecutive year.

The turnover of permanent employee departures reached 11.2% at the Group level at the end of 2023 (down one point compared to 2022). It remains high compared to Covivio's historical rates, but is not a specific phenomenon if we look at the employment market more generally. According to DARES (Ministry of Labour), in France, more than 510,000 employees on permanent contracts resigned in the last quarter of 2023, an increase compared to previous years. The staff turnover of Covivio, which was down in 2023, must therefore be put into perspective (by way of comparison, the average turnover in France in 2022, all sectors combined, was 15% according to INSEE, and 23% worldwide).

The turnover of permanent contract departures in France was 10.9%. Turnover due to resignations alone (excluding retirements and termination of the trial period) was 5.3%. In Italy, turnover was 7%. In Germany, this indicator fell slightly to 12.1%. The retention risk is less significant in 2023, due to the difficulties faced by real estate players in the face of the crisis and the slowdown in hiring policies. However, the risk is still identified in the CSR risk mapping; it was addressed by an aggressive HR policy, in terms of career development (see below the introduction of the career development interview since 2019), mobility and promotion, and also remuneration (3.5.1.3.2.) and quality of life at work (3.5.1.4.). The objective is to keep the turnover of permanent departures below 12% in 2024, and to aim for a turnover of 10% by 2027.

3.5.1.2 Providing skills development

Covivio considers the development of individual and collective skills as key factors in providing the best possible service to its customers and partners and in ensuring a suitable and motivating career path for each employee. Each of the three countries defines its annual training plan, depending on multi-year priority focuses. Since 2017, English has been a priority in the Group-wide training plan. The development of soft skills as a complement to business training is increasingly embedded each year in the European skills development strategy.

Top 3 types of training provided in Europe in 2023

(1) Professional efficiency and time management (164 employees or 16% of the workforce)

(2) Interpersonal communication and conflict management (172 employees or 16% of the workforce)

(3) Languages (111 employees or 10% of the workforce)

3.5.1.2.1 A training policy to support the strategy

For skills development, Covivio continues to align the training plan with the company strategy and the individual development of each employee. The training plan has two main objectives: to support the company's strategy by defining collective training courses in line with strategic challenges and changes in the context (new market opportunities, legislation, etc.) ; support the development of individuals through training on business lines, fluency in English, IT skills and professional and personal development, both with a view to developing Covivio's skills capital, and also to retain employees who are increasingly concerned about their development and employability.

Every year, meetings are organised with each activity Director, to determine the changes that could impact business activities and require training to allow employees to improve their skills. The People Reviews conducted for each business activity also enable multi-year priorities for training to be defined. The annual interviews then identify individual needs in the field, based on the overall list of requirements, and refine them on an individual basis through discussions with and observations from the employees and local managers.

Covivio pays particular attention to developing the skills of its employees by offering group or individual training, carried out within or between companies, or more rarely internally.

2.5% of the Group's payroll was invested in training in Europe in 2023.

This investment has a direct impact on the employee training rate, which increased from 73% in 2022 to 77% in 2023, far exceeding Covivio's training objectives. In France, 78% of employees (i.e. 236 employees) received training in 2023, exceeding the target of 70% set in 2020. The average training time on a European scale is 22 hours (18 hours for France, 26 hours for Italy and 24 hours for Germany).

Covivio aims to train at least one in two employees in Europe each year.

At Group level, fluency in English remains essential, in a spirit of collaboration between the various teams. Group or individual training sessions are organised and European projects (SAP, Covivio for Climate, Ex Aequo, for example) enable employees to develop their language skills. In total, 109 employees received training in English, i.e. more than 11% of the permanent workforce.

There were also significant amounts of business line training and behavioural skills and leadership training this year. In France and Italy, an individual coaching programme is made available to employees in partnership with Coachhub. This tailor-made offer allows employees to be supported for 3 or 6 months by a video-conference coach. An HR meeting is scheduled in advance to define with the employee his or her development priorities. Once this step is completed, the employee can choose their coach on the Coachub platform and start their coaching. Coachub supported six French employees and six Italian employees in 2023.

Leadership Development in Germany

In 2023, 76 German managers benefited from the Leadership development programme launched in 2022, which aims to create a core of common skills and share tools and guidelines, particularly on agile work or new generations.

The programme consists of six modules spread over eight days, face-to-face and online. Each manager took part in 65 hours of training on leadership principles and communication, conflict management, change management, feedback, self-knowledge and the ability to lead teams.

At the heart of the challenge of developing and retaining talent, German managers were made aware of the challenges brought by demographic change, with the appearance of a new generation on the labour market, and also the likely impacts of artificial intelligence.

In terms of digitization, a milestone was reached in 2023 with the European deployment of the LMS 365, dubbed Covivio Academy. First implemented in Germany in 2022, this platform powered by the HR Department offers online training (e-learning modules and webinars) and facilitates the registration of employees for training. All German employees have access to this solution. The platform will continue to be populated in 2024, in order to develop access to self-service training and enable self-training for all employees. LMS 365 also brings together user guides for various tools (Teams, Microsoft 365 and SAP), and training on procedures and compliance.

Business line training was provided in all three countries. They aimed in particular to deepen the expertise of the teams in real estate (economic and financial fundamentals of real estate markets, performance of hotel real estate, construction and rehabilitation of real estate operations), finance (accounting and tax news, financing of real estate assets), and mastery of IT tools (SAP, BFC, advanced Excel, or Office 365). In Italy, three key managers and experts attended high-level training courses provided by Bocconi and Luiss universities, for example on asset valuation and financing.

Training related to regulatory changes regarding the environment, developed in 2022, continued in 2023 as part of the C4C (Covivio For Climate) project (3.5.2.3.).

With a view to retaining talent and developing employability, Covivio offers certificate-level training courses to its employees. In France, a catalogue listing all available training courses is updated each year. In 2023, an employee wished to acquire the qualification of Chartered Surveyor issued by the international organisation the Royal Institution of Chartered Surveyors (RICS). At the end of the accreditation process, which requires references and training, the holder of the qualification joins a network of professionals in more than 146 countries and obtains official recognition of their professionalism and skills specific to the real estate sector.

In compliance with the Hoguet law requiring certain real estate professionals to undergo training, holders of professional cards subject to the training obligation complete 42 hours of training over three years. In France, 29 people are affected by this obligation.

3.5.1.2.2 Integrated and dynamic career management

In line with the risk mapping and in line with the European seminar organised in 2021 that led to the HR action plan to promote appeal and talent development, the HR policy focused on support for personalised career paths for Group employees.

From a collective point of view, the key moment in Covivio's talent management cycle in France is the People Reviews, cross disciplinary meetings that provide an overview of a business line's talent "pool" and the keys to employee retention, development and recruitment, based on the business line's development, the company's objectives and the relevant job markets. In 2023, a People Review of young French talents under the age of 30 was carried out to take stock of their skills development and identify opportunities for each of them. Feedback was given to employees in the presence of the line manager and the relevant member of the Management Committee. In Italy, a People review of employees under the age of 35 was conducted for the first time in 2023 by the Management Committee, resulting in the creation of individual action plans. In Germany, a Talent Review of 34 employees, led by the Germany HR department in 2022 and in the presence of department Directors, had identified areas for development and actions to be implemented in order to best support employees in their career management. This action plan was monitored in 2023.

On an individual level, the annual meeting between employees and their managers, along with various interviews conducted by the Human Resources Department, lie at the heart of the professional development programme for every employee.

At the European level, 96% of employees completed an annual performance review.

In France, 98.2% of employees had their annual review with their manager, and also had a mid-year review to take stock of the achievement of objectives and potentially update them. Discussions are based on two separate components in the annual interview. The first part is devoted to performance, evaluating attainment of objectives, measuring the employee's main results, both quantitative and qualitative, and setting the objectives for the following year. The second part is devoted to skills development and training.

In Italy, annual performance meetings, introduced in 2015 based on the French model, combine performance evaluation, skills development, establishing training needs and requests for development. They concern the entire workforce. A mid-year interview was instituted in 2019 to review the annual goals at the mid-way point. In 2023, 94% of employees on permanent contracts discussed their performance and professional development with their manager.

In Germany, an increasing portion of the workforce takes part in end-of-year appraisals (96% in 2023 compared with 69.6% in 2022). Initially considered as optional, the number of appraisals carried out is increasing. They enable employees and managers to take stock of the past year, to make decisions about variable compensation more objective, and to jointly define progress objectives. These appraisals are also an opportunity to discuss the development needs and training wishes of each employee. In 2023, the German employee representative bodies validated the sustainability of this interview, which is becoming an essential event of the year, to assess performance and also to discuss team collaboration and effectiveness.

Every year, Covivio promotes mobility within the Group. In 2023, 15 transfers were made within the Group: 6 in France, 1 in Italy and 8 in Germany.

Since 2019, discussions on the French employees career development path have been taking place through a specific "career development review" conducted at least every two years. This is an opportunity for a healthy dialogue between manager and employee about the employee's expectations. Managers were trained in conducting this review, which requires a different attitude from that of the end-of-year interview and needs a "coach manager" approach. This career development review may be followed by a human resource interview to assess the feasibility of any proposal and to put in place the necessary support (covering skills assessment, individual training account, career transition, professional development advice, coaching, job training, etc.). If a move is requested in the short term (one year) or medium term (three years) during this interview, an additional exploratory interview will be scheduled with the HR team to search for short-term growth opportunities through internal postings.

KEY MOMENTS IN CAREER MANAGEMENT

3.5.1.3 Talent retention

3.5.1.3.1 Promoting work/life balance

Since 2020 and the health crisis, there is no longer any debate on the incorporation of teleworking into operating methods. At Covivio, teleworking of one day a week had been practised in France since 2017, and a new agreement signed in 2021 extended the practice to two days per week. This amendment to the teleworking agreement allows each eligible employee in France (temporary and permanent contracts after three months) to work remotely two days a week, freely arranged by the employee, with two working days' notice, from the location of his or her choice, provided that it is within the European Union. Work-study students can also work remotely one day per week from six months.

In Italy, remote working was set up on a permanent basis for one day per week. In Germany, management and employee representative bodies decided in 2023 to increase the possibility of teleworking to two days a week, this decision applying until the renegotiation of the collective agreement on teleworking scheduled for 2025. In France, a subsidy (up to 50% and up to a limit of €100) is granted to each employee for any purchase of office equipment (chair, desk, screen, keyboard, etc.).

Workload monitoring meetings

The mid-year appraisals in France, introduced under the agreement of 25 November 2014 on the reorganisation and reduction of working time, are an effective way of raising the alarm in the event of work overload, in line with measures laid down for the prevention of stress and psychosocial risks. The Human Resources Department shares, with staff representatives on the QLW Commission, a summary of the alerts identified, their level of severity, and action plans put in place.

The interviews with the Human Resources Department or management also gave some employees an opportunity to bring up personal obligations that could impact their work lives, particularly issues related to taking care of ageing parents on a regular or ongoing basis. Through a social security-healthcare costs platform, employees can access all the information and social institution contacts that are appropriate in this type of situation.

At the same time, Covivio is continuing its commitment to Quality of Life at Work (QLW), notably as part of the Quality of Life at Work agreement. Signed for the first time in 2014, renewed in 2018, it was redesigned in 2023. Encompassing all measures likely to promote work-life balance, the agreement signed in 2023 introduces the notion of the right to disconnect and covers psychosocial risks related to the use of new information and communication technologies (NICTs); it also deals with practices that contribute to the improvement of the quality of work and working conditions, such as the quality of the managerial relationship and manager training, workstation ergonomics, work organisation, internal communication and the clarity of each person's missions.

This agreement is backed up by various mechanisms in France:

―	an ad hoc commission composed of elected CSSCT (Health and Safety Committee) members, trade union representatives and management representatives (which met four times in 2023)
―	telephone counselling exclusively by qualified psychologists and available 24/7 via a free-phone number
―	workload monitoring meetings every half-year
―	the organisation of meetings between 9 a.m. and 6 p.m.
―	training of managers and employees in the prevention of psychosocial risks.

Right to disconnect and proper use of digital communication tools

To make all employees aware of the proper use of professional messaging, a charter of best practices has been distributed to all. In particular, it includes a reminder of the need to consider the appropriate time to send an e-mail, a chat message or a telephone call, and not to request an immediate response unless essential and an emergency. An information message was included in the signature of the e-mails: "Covivio is committed to the right to disconnect. If you receive this email outside your normal working hours or during your holidays, you cannot be required to respond immediately".

In Germany, training on stress prevention and resilience development is organised on a voluntary basis, as are time management workshops. The issue of work-life balance is addressed during annual interviews. In Italy, an assessment of the risks of stress in the activity is carried out every year, according to ten indicators set by law, and discussed by a body composed of the employer, the occupational doctor and employee representatives; in view of this assessment and the working conditions in force, no alert was issued, and the risk is considered low.

Anxious to support employees in their work/life balance, the France HR department set up two new systems in January 2022:

―

an inter-company nursery reservation system nationwide, by partnering with Les Petits Chaperons Rouges. Three types of service are available: regular (weekly), occasional (for example during school holidays) or emergency. In 2023, 6 employees benefited from a full-time cradle

―

a personalised assistance to support family caregivers in their administrative procedures, via a partner from "Prev & Care", a group with 15 years' experience in this sector. The employee is assisted in all their procedures by a Care Manager, for example for the organisation of home care or the creation of a financial aid package. This remote service is available six days a week from 9 a.m. to 7 p.m. In 2023, seven employees benefited from this service.

In Italy, employees are reimbursed for part of the costs incurred for childcare and incurred as part of their schooling. In addition, working hours offer a certain flexibility (arrival between 8:30 a.m. and 10 a.m. and departure between 5:30 p.m. and 7 p.m.) in order to allow employees to organise their personal and family life. The Italian HR department supports employees in their administrative procedures related to taking maternity leave or sick leave.

In France, maternity leave is 16 weeks and may be supplemented by a 14-day sick leave prior to the birth. Covivio maintains full pay throughout women's maternity leave. Since July 2021, paternity leave has been 28 days and Covivio ensures full pay throughout the leave period for the men concerned. In addition, parental leave allows parents of a child younger than three years old to work part-time until the child turns three, or to suspend their full-time employment contract for as long as they would like (100% of parents who choose this second option return to their positions at Covivio at the end of their parental leave). When parents wish to continue to work part-time after their children turn three, they may apply to do so. At Covivio, all these applications have been granted. In Germany, a plan called BUK ⁽¹⁾ reconciles family life with work life by helping employees find childcare solutions or support for ageing parents.

In Germany, special attention is paid to family life, under the impetus of a member of the Board of Directors of Covivio, Daniela Schwarzer, who intervened in the CSR Committee to present the issues specific to the culture and examples of initiatives to be carried out. Irrespective of whether the employee is the mother or the father, parents can benefit from a working time arrangement during their parental leave and opt for part-time work. 100% of employees return to their positions at the end of their parental leave and can adjust, if they wish, their working hours. Working from home can also be implemented on a case-by-case basis, depending on the employee's situation. Work schedules can also be made flexible for parents of children under 16 years of age. During the school holidays, the German offices regularly welcome the employees' children in a friendly atmosphere and offer them games and activities. A working group was launched in 2023 to work on the implementation of new tools to promote work-life balance, particularly in the context of parenthood.

3.5.1.3.2 Performance-based pay and coping with inflation

With a view to fair compensation and talent retention, the group's remuneration programme aims for the best possible balance and takes into account both individual and collective performance, and also the profile and level of experience of employees, and the increasingly competitive state of the job market.

In France and Italy, the bonus pay policy is incorporated into the concept of individual performance, based on the extent to which job objectives determined during the annual interviews are achieved. The challenge is to make this measurement of an employee's contribution to the Group more objective and more transparent to employees. In France, 100% of employees on permanent contracts are eligible for variable compensation. In Italy, 73% of the workforce were eligible for bonuses in 2023.

In Germany, a new employee remuneration model was put in place in 2017, including the option of receiving variable remuneration, and joining the policy for performance-based remuneration already existing in Covivio. This agreement was negotiated and approved by staff representative bodies. Employees can choose to join this new model or remain covered by the previous collective bargaining agreement. In 2023, 73% of employees received variable remuneration. As of 31 December 2023, 99% of the workforce was covered by one of these two collective agreements; only six executive managers are not covered due to their different contractual status.

⁽¹⁾ Betriebliche unterstützte Kinderbetreuung - Company-funded childcare

An employee shareholding scheme

Covivio allows its French employees to take advantage of a legal system that allows companies to provide employees with an incentive to share in the company's results, governed by a collective agreement negotiated and signed with the social partners. Each year, each employee can invest his or her profit-sharing bonus (equivalent to 9% on average of annual remuneration) in a Company savings plan, in cash or Covivio shares, with a matching contribution from the company.

Employee incentives, profit-sharing schemes and savings agreements have been rolled out within the France ESU as part of existing collective agreements. An average profit-sharing of 8.55% of annual salary averages was paid to employees in 2023 based on their performance in 2022. 88% of the beneficiaries opted for a partial or total investment under the Group Savings Plan, and 81% opted for an investment in Covivio shares, this investment giving rise to an additional contribution by the Group, in order to encourage employee shareholding.

In 2023, 50.5% of employees Europe-wide (vs 51.2% in 2022) were also eligible to receive free Company shares.

Breakdown of profit-sharing

In all three countries, measures to combat inflation have been put in place. In France, a value-sharing bonus of €2,000 was paid to all eligible employees in December 2023. In Italy, a bonus of €2,000 was paid in the form of warrants. In Germany, in order to support employees in the face of inflation, a sum of up to €1,500 for full-time employees was paid in 2023 (part of this amount is paid monthly), and this inflation aid was renewed for 2024.

In Italy, since December 2022, employees have benefited from reductions on expenses related to childcare, school fees, transport and have vouchers for cultural activities (cinema, concerts, museums, etc.). This measure has already been renewed for 2024.

In terms of HR offers and user experience, Covivio continues to adapt. In France, restaurant vouchers are now digital thanks to a dedicated application and French employees sign their free share award emails with an electronic signature. The annual remuneration report for each employee is now computerised and in 2023 France, after Germany in 2022, digitised all personnel files.

3.5.1.4 Ensure health and safety and promote quality of life at work

Each of the entities of the Covivio group applies the eight conventions of the International Labour Organisation (ILO) concerning: freedom of association, effective recognition of the right to collective bargaining, elimination of all forms of forced or compulsory labour, effective abolition of child labour and elimination of discrimination in employment, remuneration and occupation.

Health and safety are very much part of Covivio's employee policy and numerous initiatives are carried out to support employee health, such as flu vaccinations (in France and Germany), skin cancer prevention measures, specific office layouts (such as variable height desks, adjustable stands for additional computer monitors) for employees who have musculoskeletal problems, and the holding of awareness meetings concerning screen work. An ergonomist doctor is regularly called upon in the French premises. Yoga classes are also offered to the Berlin teams, and a partnership with a national gym chain allows employees to benefit from preferential rates. In France, the Works Council partially finances the sports activities of employees who so wish. A sports hall is planned in the new premises of the Parisian teams, and will be operational from March 2024.

In Italy, workspaces in Rome and Milan were renovated in 2022 to improve employee comfort. The meeting rooms were expanded and telephone booths were installed, allowing everyone to isolate themselves during meetings. In France, Covivio worked throughout 2023 on the improvements to its future Paris site (relocation planned for February 2024), in conjunction with the employee representative bodies and a "mirror" working group composed of representative employees. In Germany, the company canteen was renovated and the catering offering revised for better taste and nutritional quality.

In terms of work safety, Covivio is committed to meeting and exceeding French statutory requirements, with 15% of employees being certified workplace first-aiders in 2023 (48 employees). The prevention of electrical risks is also taken into account through the H0-B0 ⁽¹⁾ accreditation of all employees exposed to this type of risk within the Real Estate Engineering and IT departments. The Single Occupational Risk Assessment Document (DUERP) was reviewed in 2023 with the elected members of the SEC, and includes all potential health and safety risks for Covivio employees and service providers. It is shared with the Occupational Health department and is reviewed every year to incorporate any new risks. To help employees with their remote work set-up, Covivio finances 50% of home equipment (ergonomic chair, additional screen) up to €100. In Italy, a great deal of attention has been paid to safety training, provided to employees in the company who hold specific roles defined by Italian safety legislation: operational managers and certain employees have thus joined the Group of already trained first aiders.

More generally, the Health and Safety Committees (CSSCT) ⁽²⁾ in France, and the equivalent national bodies in Germany and Italy, verify the compliance and comfort of the facilities provided to employees, and are informed of all refurbishment projects and preliminary schedules for any work. In Italy, this Committee meets at least once per quarter and an "Employee Safety Manager" is, in addition, responsible for making sure that the organisation complies with security and safety principles. 100% of Covivio employees are covered by a staff representative body responsible for ensuring compliance with the standards in force, identifying any health and safety problems, and encouraging the necessary preventive actions.

No workplace accidents were recorded in Italy in 2023. In France, two of the three accidents recorded are commuting accidents (between home and work), and the rate is still low, at 1%. In Germany, the rate is very low at 1.4%. At Group level, the workplace accident rate is 1%. The absenteeism rate also remains low, at 2.7% in France, 4.2% in Germany, and 1.7% in Italy. At group level it is 3.5% (compared with 4% in 2022). The safety rules and equipment on construction sites are defined in the procedures according to the legal standards in force, are broken down into mandatory training and are the subject of regular reminders. Travel is governed by a travel policy specific to each country. No accident resulted in any disability and no fatalities were reported.

In France, Covivio ensures that the rest periods for employees on fixed-day contracts (90% of the population on permanent contracts) are respected. The legal rest period is at least 11 consecutive hours and the weekly rest period is at least 24 consecutive hours. For employees who are not covered by this fixed amount of rest, the weekly working time is 37 hours, and any excess is recovered within two weeks of this excess. In Italy, full-time employees work 40 hours per week. In Germany, a large number of employees also work 40 hours per week and around 140 employees have a specific contract inherited from the former collective agreement and work 37 hours per week. Working time is measured in Germany via a time recording and monitoring tool, and overtime payments are compensated. In 2023, a collective agreement in Germany harmonises the number of days of leave granted to employees (30 days) and makes it possible to convert part of the variable remuneration into additional days of leave, on a voluntary basis, within the limit of three days.

In Germany, the Human Resources Department put in place a conflict management procedure, in collaboration with employee representatives. This strictly confidential procedure provides for mediation support for the person or people concerned, led by the Human Resources Director and supported by an employee representative. The existence of this procedure was widely communicated to employees and has been a tool for successfully resolving certain disputes.

Furthermore, in France, employees benefit from an additional (mutual) health cover, 75% financed by Covivio for non-managers and 65% for managers, and their salary is maintained from the first day of absence for sick leave, for a month. In Italy, employee health insurance covers the medical expenses of employees and their family members (spouse and children) upon presentation of invoices and up to predefined caps. In Germany, all employees also benefit from health insurance, 50% covered by Covivio, and the salary of employees is maintained at 100% during the first six weeks of illness.

⁽¹⁾ The H0-B0 electrical qualification concerns all activities performed in electrical rooms as well as all electrical work carried out on a professional basis.

⁽²⁾ CSSCT: Health, Safety and Working Conditions Committee.

Create face-to-face and remote social links

In 2023, four Covivio Talks were held, enabling Management to share the Group's results and ambitions with all teams. There was also the bimonthly European newsletter distributed to all Group employees.

In France, Covivio Meetings give the floor to experts on business or cross-functional themes (operated office, innovation, low-carbon building, biodiversity, etc.) ; these awareness-raising initiatives brought together many employees throughout the year. In Germany, remote discussions are organised with executives on cross-functional topics, and registration is free.

In terms of working methods, remote working applications (Office 365 and in particular Teams) are now part of everyday life in France, Germany and Italy, thus enabling a Smart Working dynamic to emerge based on technology but now also the team spirit between employees.

A year dedicated to quality of life at work

In France, training sessions to combat PSRs (psychosocial risks) were rolled out to 125 participants in 2023. They are an integral part of a face-to-face training programme rolled out in 2022 and 2023, as part of the prevention framework provided for in the QVT agreement signed in 2023, including a module focused on the right to disconnect, as well as the dissemination of a webinar on stress management, including a cardiac coherence exercise (phasing of heart rate and breathing) for rapid relaxation. Covivio is once again committed to employee health. These training courses make it possible to both individually and collectively develop the quality of life at work and enable everyone to find the resources to better manage situations at risk for themselves and for others. Discussions with PSR professionals enable employees to become aware of the impact of their own beliefs, behaviours and emotions on themselves and on others. In total, more than half of employees were trained in PSRs in 2022, and the other half were trained in 2023.

In Germany, stress and resilience training has been offered to employees since 2021. Each manager is involved in the deployment of training to his or her team. Time management is also a topic covered during these training sessions.

3.5.1.5 Promoting diversity and equality

Covivio is committed to combating all forms of discrimination and has implemented measures covering all of its activities in Europe. The scope of discrimination covered by these measures are: age, sex, gender identity, name, origin, marital status, sexual orientation, mores, genetic characteristics, real or supposed affiliation to an ethnic group, a nation, a race, the language spoken, physical appearance, disability, health, pregnancy, political opinions, philosophical opinions, religious convictions, trade union activities, bank domiciliation, place of residence, particular vulnerability linked to the economic situation, and loss of autonomy.

In terms of recruitment, the review of applications and invitations for job interviews are being reviewed to ensure diversity among the candidates' profiles considered for each job. In the Group as a whole, all recruitment processes must present at least one candidate of each sex, and the recruitment guide for Human Resources and managers sets out the principles of non-discrimination in hiring as well as regulations in this area. Recruiters within the French HR Department undergo training every three years on the fight against discrimination in hiring, and an e-learning module was rolled out at the end of 2023 to all recruiting managers. In Germany, following a decision of the German Constitutional Court, Covivio adds the term "Other" in its job advertisements: "Job title (Man/Woman/Other)". Covivio thus affirms its goals in terms of combating discrimination, here against transgender people.

In Germany, Covivio is a member of the "Charta der vielfalt" ⁽¹⁾ , an initiative that promotes inclusion and diversity in companies through recruitment, training and skills development. Two people are officially designated as contact points for discrimination and can be contacted by employees in the event of a complaint.

Gender balance

As a signatory to the Diversity Charter ⁽²⁾ in 2010 and the Global Compact ⁽³⁾ in 2011, Covivio's HR policy is consistent with the objectives of these agreements, in particular by systematically analysing pay gaps between people performing the same job, starting with any wage that is 5% below the median. Thirteen staff members were affected by an appropriate salary measure following this review in 2023. Covivio received a score of 95/100 in 2023 on the Gender Equality Index implemented in 2023 (versus 91/100 the previous year). A similar procedure for reviewing potential inequalities has been in place in Italy since 2017: the only differences identified were a difference in average seniority of service between men and women, involving a wage gap as per the rules set out by the collective agreement. In Germany, an exercise is carried out to readjust all lagging wages, thus contributing to greater equality between men and women.

In France, the gender breakdown in the workforce remained stable, with 57.7% women at 31 December 2023. There is almost gender balance in the managerial population: 49.3% of managers were women on 31 December 2023, and the proportion of women on the French Management Committee of Covivio is 50%. In Germany, women represent 47.3% of the workforce and one third of managers are women (34.4% in 2023 compared to 36.2% in 2022). In Italy, the workforce is 51% male, and women represent 50% of managers. Like the French Management Committee, 50% of the Italian Management Committee are women. In Germany, 25% of the Executive Committee is made up of women. At Group level, the proportion of women managers remains stable (42% of the Group's managers are women in 2023 compared to 43.3% in 2022), confirming the progress made since 2016 (+20 points). The Executive Committee of Covivio, a European management body, comprises 30% women.

The aim of the Ex-Aequo programme is to promote gender equality on a pan-European basis.

Since 2017, Covivio has deployed the Ex-Aequo programme with the goal of fostering the development of women within the Group. It consists of two main components:

―	raising employee awareness about gender equality through surveys and information meetings
―	a mentoring programme designed to support and guide women who wish to receive guidance on their professional career and benefit from the support of a mentor who is a member of the European Management team. Today, 26 French, Italian and German women benefit from this programme.

All French, German and Italian mentors were trained in the role of mentor. This training was provided by Gloria, a partner on gender balance issues.

Mentees are regularly invited to express their additional expectations. In Germany, where the number of mentees is high, meetings are organised regularly to collect feedback and improve the programme. People in the edition launched in 2023 will meet in Paris for a face-to-face event in June 2024.

The French mentees of the 2022 edition were offered in 2023 a membership (financed by Covivio) of the professional female real estate network, CREW. This membership gives them access to a large number of contacts, mentoring sessions by women managers and events and round table meetings on the promotion of women in real estate companies. Covivio hosted one of these events in these premises.

On the occasion of Women's Rights Day, a European-wide Covivio meeting was offered to all employees. In two parts, this event firstly proposed to share the experience of Chiara Montanari (engineer and first Italian woman appointed leader of expeditions in polar missions) on how, as a scientist, team leader and woman, to thrive under the pressure of uncertainties and risks. In the second part we heard from mentee-mentors pairs in the three countries, as part of the launch of the next mentoring programme.

In Italy, a partnership was signed with Valore D, the main professional association committed to gender balance in Italy. Thus, Covivio employees can access information on this topic and participate in events and initiatives offered by the association (conferences, mentoring programmes, etc.).

⁽¹⁾ Charta der Vielfalt - Für Diversity in der Arbeitswelt (charta-der-vielfalt.de)

⁽²⁾ Principles of the charter: Terms - Für Diversity in der Arbeitswelt (charta-der-vielfalt.de)

⁽³⁾ https://unglobalcompact.org/what-is-gc/participants/15495-Covivio

No complaints related to discrimination issues were submitted to the Ethics Officer in 2023, and Covivio was not found guilty of any offences in the area. The whistleblowing system in place also covers all types of harassment and discrimination, and protects whistleblowers. In France, in response to the 2017 French Labour law, two sexual harassment officers were also appointed (one on the Works Council and the other in the Human Resources Department), increasing the number of available whistleblowing and response channels. An e-learning module on the prevention of sexist behaviour is available on the Covivio Academy platform. It aims to help employees and managers identify sexist behaviour (in its various forms) at work and react accordingly if necessary.

In France and Italy, where the national environment is more favourable to group childcare and where the offering is more comprehensive, ad hoc systems have been put in place to promote work-life balance, such as the scheme launched in 2022 offering childcare places or solutions. The systems implemented to improve the work-life balance, including for young parents, are detailed in Section 3.5.1.3.1.

Disability

In the case of equally qualified candidates, Covivio promotes the recruitment of candidates with disabilities. At 31 December 2023, employees with disabilities made up 1.6% of Covivio's workforce in France, 4% in Italy and 5.5% in Germany. Covivio also indirectly promotes employment of people with disabilities by using ESATs (establishments and services providing assistance through work) and companies that specialise in employing people with disabilities for events (charity buffets, waste audits, etc.).

In 2023, Covivio signs an agreement with AGEFIPH.

In 2021, Covivio launched its first disability mission. In 2023, this first initiative led to the signing of a partnership with the National Association for the Management of the Fund for the Professional Integration of People with Disabilities ⁽¹⁾ , with the support of the Social and Economic Committee. By signing an agreement, Covivio is committed to concrete progress objectives by 2026: continue training by increasing the involvement of managers; reach 4% of direct jobs in France; strengthen career support for RQTH employees within Covivio teams; doubling our purchases from the adapted and protected sector.

Very concrete actions were rolled out in 2023 to continue the awareness-raising work carried out since 2021: publication of articles on Parkinson's disease, multiple sclerosis, breast cancer and mental health; organisation of conferences on musculoskeletal disorders and endometriosis (in the presence of occupational health professionals); information on RQTH (recognition of the status of disabled worker), particularly during recruitment and integration; introduction of disabled sports activities on the occasion of SEEPH (Week for the Employment of People with Disabilities).

A disabled worker took part in the "DuoDay" and was integrated into the IT teams for one day, and the HR team mobilised to participate in the 12th Tremplin disability work-study forum.

In Germany, as part of the Foundation, Covivio supports the "Mädchen? Natürlich!" programme ("Girl? Naturally!") promoting gender equality and non-discrimination towards people with disabilities through the organisation of summer camps for young girls with disabilities to help them develop their self-confidence.

In France, employees returning to the company after an absence of more than three months (illness, maternity leave) are supported to facilitate their return to work. In particular, an HR interview is organised to discuss their working conditions and pace. Following this interview, the employee's schedule can be adjusted or an appointment can be made with an ergonomist in order to meet the needs of the employee.

Senior employees

With regards to support provided to the senior workforce, Covivio introduced a systematic interview with the Human Resources Department in the year of each employee's 55th birthday. This interview, which can be held for employees each year at their request, examines issues relating to their job, any desired changes and measures to be taken in terms of ergonomics, for example. In 2023, all seniors were invited to this interview and 48% responded favourably (senior employees in general hope to have this interview every two years rather than annually). In addition, Covivio allows employees over 55 to work part-time while maintaining their retirement contributions based on full-time employment. Six employees benefited from this system in 2023, i.e. 13% of the senior workforce. An agreement on seniors promoting the retention of older employees in employment and the preservation of their working conditions was signed in 2020. A Senior Time Savings Account (CET) for employees aged 55 and over enables them to anticipate their retirement. Training is also offered to employees approaching retirement age to prepare for this step from an administrative and psychological point of view.

⁽¹⁾ Since 1987, Agefiph has supported people with disabilities in private sector companies, through the development of their employment and helping them to stay in their jobs. Among its main actions, it advises and supports companies in the definition and implementation of their disability actions, and grants financial aid to companies and people to compensate for disability in employment.

3.5.2 Employee-employer dialogue and employee engagement issues

Even if they are not considered as major risks in the risk mapping (3.5.1), the subjects considered in 3.5.2 and 3.5.3 are important issues for Covivio. In particular, the richness of employee-employer dialogue, or the challenges relating to the reduction of the Group's environmental footprint.

3.5.2.1 Ensuring transparent dialogue with employees

Covivio and its subsidiaries maintain permanent, transparent and constructive dialogue with employee representative bodies. Covivio is committed to promoting employee-employer dialogue and freedom of association. Any employee may freely join the trade union of his or her choice and trade unions may freely organise themselves in accordance with the provisions of the French Labour Code. Covivio undertakes not to discriminate against any employee belonging to a trade union, in particular in terms of recruitment, conduct and distribution of work, professional training, promotion, remuneration and the granting of social benefits, discipline and termination of the employment contract.

In France, collective agreements are negotiated by Trade Union Representatives, and two unions were represented within Covivio in 2023 (CFE CGC and CFDT). In 2023, three collective agreements were signed: the agreement on Quality of Life at Work, an agreement on the payment of a Value Sharing bonus (see below), and an agreement on the implementation of the electronic voting in SEC elections. The Employee Representatives are responsible for any individual questions and issues. All elected representatives are "protected" by labour law, including after the end of their term of office, and may only be subject to sanctions with the authorisation of the State and according to a specific procedure. They enjoy great freedom of speech and time devoted to their responsibility as elected officials. This same protection applies to German and Italian elected representatives and trade union officials.

The Social and Economic Committee (CSE) in France

The CSE is composed of 11 full members elected by the staff; it has been in office since 1 January 2020 and includes in addition to the missions of the former Works Councils and CHSCT, those of the "Employee representatives", thus making it their representation to General Management more understandable for employees. The CSE manages and independently decides how to allocate a budget equivalent to 2% of the total payroll to fund social and cultural activities for Covivio employees.

In 2023, elections were held for the SEC which will sit from 2023 to the end of 2027. Held over four days, turnout for the election was high, with 70.6% of the workforce voting.

In France in 2023, during eight meetings of the Social and Economic Committee, employers and unions were informed and consulted at ordinary and extraordinary meetings on the Group's social and environmental policy, the economic and financial situation, as well as on strategic orientations and their impact on jobs and the environment (changes in business lines and skills in particular). During these three consultations, the Social and Economic Committee unanimously issued a favourable opinion.

For the past several years, Covivio has reached salary agreement with Trade Union Representatives under the Mandatory Annual Negotiations (NAO). The negotiations must cover the fields defined by law: mainly the remuneration and the sharing of added value, but also working time, gender equality and quality of life at work. In 2023, several measures were put in place or continued in this context, such as the collective allocation of 30 free shares to reward the involvement of teams, or the payment of a value-sharing bonus of €2,000 to all employees in December 2023.

In Germany, the social dialogue is organised through different channels. As in France and Italy, the German Constitution (Article 9) guarantees companies and their employees the freedom to join or abstain from joining a professional association or union. Every month, a meeting is held to discuss different topics and is attended by management, the Human Resources Director and employee representative bodies. Department managers are responsible for relaying information about potential changes to working conditions. All information related to collective bargaining agreements, ethical principles, major divestments and acquisitions made by the company and the Covivio group's strategy and news updates are made available to employees via the intranet. In 2023, five collective agreements were signed in Germany: an agreement on the permanence of annual interviews, an agreement increasing to two days the maximum number of days of teleworking per week until 2025, an agreement on the harmonisation of leave days leave and the possible transformation of part of the variable remuneration into leave, an agreement on the monitoring and management of working time, and an agreement on the implementation of SAP.

In Italy, union representatives were involved in the following activities: communicating with employees, sharing dates of company closures and sharing regulations on well-being at work before any communication to employees. They also took part in the two meetings of the Covid Committee. The Covid Committee meetings were fewer than last year because the epidemiological and regulatory context did not require special intervention measures, so that in September 2023, the Covid Committee was closed. Lastly, as every year, the regulatory meeting was held between the RLS (worker safety manager - person appointed within Covivio), the management representative, the occupational doctor and the RSPP (person responsible for prevention and protection).

Covivio was not accused or convicted in 2023 for infringements in the area of labour law or freedom of association.

3.5.2.2 Be exemplary in the exercise of CSR values

Covivio aims to be exemplary in its daily operations, by applying best practices to reduce the environmental footprint of the various sites hosting its teams. This dynamic is an integral part of the Group's sustainable development policy and relies on the support of each employee.

3.5.2.2.1 "Covivio 4 Climate"

To go further and involve employees in a sustainable development approach, the Group launched a new cross-divisional project in 2022: Covivio 4 Climate (C4C).

A European carbon assessment

The first step of this project consists of carrying out a complete carbon assessment of all our corporate greenhouse gas emissions. For this new exercise, the GHG Protocol method was used and the assessment was extended to IT services and procurement. To this end, many departments were involved and a questionnaire was sent to all Group employees. In addition to questions relating to their home-work travel, the questionnaire also included an eco-friendly section in the office and a space for free comments. More than three quarters of employees responded, showing a strong interest in these topics.

Each Covivio employee emits an average of 5,750 tCO ₂ e per year.

Purchases of goods and services represent more than 50% of global emissions. Purchasing of services represents the largest category, followed by cloud services (email and storage) and catering. The home-to-work commute represents 21% of total emissions, with strong disparities within the Group depending on the location of the headquarters in the three countries. Lastly, energy consumption of the head offices is responsible for 14% of total corporate emissions.

A corporate roadmap co-constructed with the Group's employees

Through various stages of awareness-raising and the creation of a European team of climate ambassadors, a roadmap was drawn up in 2023 in order to set new objectives for the Group's operational scope. This was submitted to the Executive Committee for approval. The Executive Committee selected a total of 40 actions whose responsibility for implementation was entrusted directly to employees involved in the subjects in question. In total, since the launch of the project, more than 100 Group employees have been involved.

To date, 32% of the actions have already been completed, including:

―	A new European travel policy;
―	An awareness-raising campaign for more responsible food in Italy;
―	The implementation of a zero plastic policy in Germany.

A key focus of the project, the awareness of all employees was ensured through various communications relating to the progress of the project, and also on certain more specific subjects such as waste and travel. This awareness-raising stage began with Climate Fresco workshops on the one hand for all members of the three Country Management Committees and on the other hand for the team of ambassadors, for each country, of representatives of the three major business line groups (Corporate, Real Estate, Finance).

Finally, a module raising awareness of climate issues was made available to all employees on the Covivio Academy platform on the occasion of European Sustainable Development Week. This module covers the main challenges for the real estate sector and the main pillars of the climate strategy, illustrated through the actions and initiatives rolled out within the group.

Biodiversity fresco

On International Biodiversity Day, 22 May 2023, two "Biodiversity Fresco" workshops were held at Covivio's Paris headquarters. This participatory, fun and educational activity aimed to raise awareness among employees of the concept of biodiversity, to explain the causes of its reduction as well as the consequences associated with this phenomenon. These two workshops were led by Marie Joret des Closières, an ecologist from the G-On consultancy.

A new European business travel policy

To meet the objectives set as part of the C4C approach and harmonise practices within the Group, a new policy has been drafted. In particular, it establishes that:

―	Employees are not authorised to fly if an alternative by train lasting less than 4 hours is possible
―	Taxis are only possible for journeys that cannot be made by public transport in less than 30 minutes.

In conjunction with C4C, Covivio has also approved the partial reimbursement of public transport passes for home-work travel for its European employees (in France, initially at 80%, above the regulatory threshold). The payment of mileage allowances for employees commuting to the office by bicycle in France and the provision of secure bike storage also help to encourage employees towards more environmentally-friendly ways of travelling to work.

3.5.2.2.2 Exemplary premises

In its most recent establishments, in France and Germany, Covivio uses flexible arrangements emphasising well-being and user-friendliness, that foster collaborative and creative work.

In France, in 2017, an agricultural greenhouse was constructed in the courtyard of premises occupied by Covivio at 30, avenue Kléber, in Paris. The company Topager was put in charge of urban agriculture, both for the design and implementation of different crops planted and sown and for monitoring and maintenance. This greenhouse is, in addition, a great tool for raising awareness of the challenges facing nature in the city.

Awareness meetings were held with Topager to present the planting and first harvests and explain the importance of urban biodiversity to employees.

In addition, to help boost employee well-being, a concierge service manages the Paris and Metz sites. Fruit baskets are also made available to employees in France and Germany.

Employees increasingly demand tangible actions from the company to support the environment and society in general. Covivio's commitment to sustainable development relies on the active involvement of all employees, both in their work and through civic-minded action which is gradually becoming automatic.

Many initiatives taken in this area contribute to employees' pride in working for the company:

―	environmental certifications for headquarters buildings: HQE in construction and BREEAM In-Use for the Le Divo building in Metz, and BRaVe BB for Milan Cornaggia In 2023, Covivio Immobilien obtained "BREEAM In-Use, Very Good" certification at the Oberhausen head office. The future Paris headquarters of Covivio is HQE and BREEAM Excellent (renovation) certified and is aiming for the BBCA, Biodivercity, Osmoz and R2S labels.
―	100% green electricity contract for the Italian sites and photovoltaic panels on the headquarters in Oberhausen (Germany)
―	renovation work to improve the buildings' energy efficiency: more efficient heating and cooling systems, LED lighting, motion detectors in common areas, etc.
―	installation of devices to measure air quality at the Milan headquarters
―	waste sorting and recycling of all paper and cardboard, collection and recycling of coffee capsules, collection of printer toner, batteries and plastic caps for recycling, phasing in of sorting of other waste (metal, plastic, etc.)
―	food waste avoided by redistributing uneaten food to employees after meetings/presentations
―	increased use of maintenance and cleaning products with an Ecolabel
―	water savings through the use of dual flush toilets
―	elimination of plastic water bottles and installation of water fountains
―	distribution of recycled plastic bottles
―	all paper used in Covivio printers is PEFC certified (paper from sustainably managed forests), and has the European Ecolabel label (taking into account the product's entire life cycle, its quality and its use). This paper policy applies to all printing and external administrative and commercial publications. Covivio also makes ePresse tickets available via QRCode in common areas.

A waste audit of the premises hosting Covivio's teams in Paris was carried out in December 2019, with the help of Cèdre, a company employing 74 disabled people (which provided work for the equivalent of just over one disabled employee during the audit period, which lasted one week).

This analysis revealed the potential to recycle an additional 30% in volume and 10% in weight. Awareness-raising actions for employees on selective collection and food waste were held in 2020, supplementing actions on this topic that were conducted during European Sustainable Development Week 2019. An internally produced guide to sorting waste on a daily basis was distributed to employees in 2020.

3.5.2.2.3 Informed employees

Change management is based on a comprehensive set of actions. Among these initiatives, awareness-raising articles regularly distributed on the Group's intranet, or the bi-monthly Covivio ("Green" or "Innovation") Meetings for raising awareness and providing information on sustainable development, through various subjects related to Covivio's business lines. Experts (start-ups, engineering firms, lawyers, non-profit organisations, local authorities, etc.) on CSR (low-carbon construction, digital tools, new labels, biodiversity, resilience, etc.) and innovation topics (new uses, artificial intelligence, etc.) come to present innovative solutions, emerging concepts and results of studies commissioned by Covivio (energy flexibility, carbon trajectory, etc.).

Covivio's Sustainable Development Week took the form of a European intra-company challenge on eco-friendly behaviours, on the same model as the QVT challenge of June 2022.

In general, each new employee is made aware of CSR, particularly during the induction day, which they take part in during the weeks following their arrival. Each employee has also had access to a climate awareness module since September 2023 (3.5.2.2.1).

One-off educational and engagement actions for employees are also held throughout the year, including:

―	clothing collection with La Cravate Solidaire (a charity also supported by the Covivio Foundation) at our headquarters buildings, and also, for the first year, in 17 multi-tenant Covivio buildings throughout France: 279 kg of clothing was collected in this way
―	food drive in Paris for the benefit of Restos du Cœur
―	actions related to national/European/international weeks: for example, during waste reduction week, initiatives in 2019 relating to composting in the agricultural greenhouse, and in 2020, distribution of a guide on waste sorting. In 2021/2022, a week was dedicated to disability on the occasion of European Week for the Employment of People with Disabilities, and an Eco-friendly behaviours challenge was held in this same context in March 2022
―	a cyber Clean Up Week was held at the end of 2021, in the form of a European mailbox cleaning challenge in support of an initiative to raise awareness of digital issues
―	events at the Wellio space in Marseille: including showcasing of local organisations or start-ups through afterworks, such as Plastic Odyssey and Lemon Tri, the collection of toys and a joint bookstore, etc.
―	various awareness-raising actions via the weekly Welcome Managers newsletter on ecology (recycling week, Earth Day, Straw-Free Day, etc.)
―	Disability Employment Week (see box in 3.5.1.5)

Covivio Eco-Challenge: a great European success!

Covivio's Eco-Challenge 1, the first of two European challenges in 2023, was held from 3 to 28 April. For four weeks, more than 400 Covivians, divided into 31 teams, travelled kilometers in a sustainable way (on foot and by bicycle), answered quizzes and posted their photos on topics such as health, well-being and security.

Thanks to the challenge, more than 57 million steps were taken, i.e. the equivalent of five times the Great Wall of China, and 8,620 km were travelled, i.e. the equivalent of 205 marathons, representing 4,732 kg of CO ₂ saved!

3.5.2.2.4 Exemplary IT solutions

As part of its digital transformation, Covivio is adopting innovative IT solutions to help smooth the flow and increase the reliability of information Europe-wide with the aim of bringing the teams in the three countries where it operates closer together. To this end, user-friendly collaborative tools (such as sharePoint, Teams and OneNote) have been adopted by all the sites. Video-conferencing equipment has been modernised, facilitating exchanges between the various departments/entities on the one hand, and promoting a reduction in the number of trips on the other. Similarly, the ongoing switch to the cloud and the pooling of certain resources at the European level are helping to reduce the Group's energy and carbon footprint.

In France, multifunction printers were replaced in 2018 by more modern and more environmentally-friendly equipment. Their total number was reduced and individual printers were eliminated. A number of processes have already been made paper-free. A report on printing initiated in 2012 tracks the impacts of initiatives carried out in this area.

Data security is identified as a major risk in the 2018 risk mapping study (3.6.3). Finally, a business continuity plan has been put in place and is tested periodically (3.6.3.1).

In early 2021, the Information Systems department also implemented a new anti-phishing plan (cyber-attacks aiming to collect and exploit personal data) in the form of a document enabling employees to identify this type of attack and, ultimately, to prevent them.

From 2021 to 2023, the Group matured in three main areas of cybersecurity, in conjunction with its risk mapping:

―	Technological: with the implementation of tools and technologies to further secure access to our systems for our employees and partners, while aligning with new hybrid working practices
―	Governance & Compliance: Update of the ISSP (Information Systems Security Policy) at European level, Conduct of audits and penetration tests, review of the cyber crisis plan
―	User awareness: employee awareness, anti-phishing campaigns, provision of forms detailing best habits and practices in the area of cyber security

This Cyber cycle was assessed in 2023 and given an A- rating by ANSSI (National Agency for Information Systems Security), establishing Covivio's maturity in the area of cyber-security.

The Cyber 2024-2027 action plan is built around ANSSI recommendations and NIST/ISO 27001 security guidelines, in line with current threats.

3.6 Governance based on ethics and transparency

Covivio, whose securities are listed on compartment A of Euronext Paris, is a leading investor and operator in the office markets in France, Germany and Italy, the hotel industry across Europe, and the residential market in Germany. Covivio's governance has adapted in order to be able to respond effectively to the challenges of its multi-product and multi-country business model. The analysis of the CSR risk mapping does not place the risks relating to governance among the most sensitive risks for the Group. However, Covivio intends to benefit from ever more effective governance with the appropriate skills to meet the company's current and future challenges. Covivio's governance is summarised in the diagrams below.

Governance key performance indicators (at 31 December 2023)

14

DIRECTORS

50%

INDEPENDENT DIRECTORS

43%

WOMEN

"EFFECTIVE GOVERNANCE TAILORED TO THE CORPORATE STRATEGY"

0

CONTROVERSIES

1

CSR COMMITTEE

0

SUPPORT FOR POLITICAL PARTIES

"FRAUD/CORRUPTION/ETHICS"

1

EUROPEAN ETHICS CHARTER

100%

EMPLOYEES TRAINED IN FRAUD AND CORRUPTION RISKS

0

CONVICTION FOR ACTS OF CORRUPTION

"CORPORATE DATA PROTECTION/SMART BUILDING"

1

CYBER INSURANCE PURCHASED FOR THE GROUP

3

DATA PROTECTION OFFICERS IN EUROPE

1

EUROPEAN GDPR INTERNAL CODE

Shareholding and organisation of the Board of Directors and its Committees

This Chapter 3.6 describes the organisation of the company's governance, as well as its main requirements especially ethics and transparency. Other governance risks that fall outside the scope of CSR are detailed in Chapter 1 of the document.

3.6.1 Involvement in ESG issues

CSR has a strategic dimension for Covivio's business model and development, and Covivio's governance bodies strive to promote corporate value creation by taking into consideration the various social, societal and environmental issues that the company's activities face.

Significant changes have been made by the Board of Directors in recent years, enabling Covivio's CSR approach to develop and strengthen.

Changes in the Group's CSR governance

Covivio's long-term CSR policy was strengthened in 2019 with the expression of the Group's Purpose. It is intended to cover all levels of the company and all of its activities in Europe. The Executive Management, which has a European dimension, therefore ensures that the various functional and operational departments of the Group take into account social, societal and environmental issues when implementing the strategy defined by the Board of Directors.

Simplified organisation chart of the European Executive Management

The CSR risk mapping highlighted the importance for Covivio of relying on effective and stable governance, adapted to the company's strategy. Based on this CSR risk mapping and the definition of the issues with the highest level of materiality, the CSR policy is broken down into various objectives structured around four areas, including governance, which aims for the best levels of transparency, openness and ethics.

3.6.1.1 An effective governance structure, in line with the recommendations of the Afep-Medef Code

In November 2008, Covivio adopted the Afep-Medef Code as a reference framework for its corporate governance. The company continues to refer to this Code, in its updated version published in December 2022, and draws on the work of the High Committee on corporate governance (HCGE), as well as on the various recommendations of the French Financial Markets Authority (Autorité des Marchés Financiers - AMF), the EPRA and the Ethical Charter of the French Federation of Real Estate Companies (Fédération des Sociétés Immobilières et Foncières - FEI, formerly FSIF).

Since 2013, Covivio has increased the number of women on the Board, while ensuring a balance in terms of independent Directors and strengthening the Board's skills, in particular in the area of real estate, law, the environment and finance, as well as in terms of international expertise and administration of listed companies.

An overview of the skills and expertise of the Directors is provided in paragraph 5.3.2.1.3, Chapter 5 of this Universal Registration Document.

These developments have enabled Covivio to embrace an open, transparent and ethical governance that is tailored to its share ownership structure and with the aim of serving the long-term interests of the company, its shareholders, tenants, stakeholders and employees.

These efforts have been applauded by analysts and rating agencies and widely recognised, in particular through the award of AGEFI's "2020 Grand Prix for Compliance". In 2023, Covivio was once again awarded the Best Managed Companies label, thus being one of the 14 French companies to win the 2023 edition of the Deloitte France programme.

In addition, the Board of Directors regularly endeavours to adapt its internal rules to changes in governance. Thus, following the update by the HCGE of the Guide for the application of the Afep-Medef Code in June 2022, the Board of Directors included in its internal regulations the procedure for selecting independent Directors.

3.6.1.2 The Board of Directors at the centre of corporate governance

3.6.1.2.1 Composition of the Board of Directors

The governance of Covivio is based on a Board of Directors structure, with separation of the functions of Chairman of the Board of Directors and Chief Executive Officer, thus guaranteeing an effective balance of powers between, on the one hand, the Chairman, who oversees the proper functioning of the Board of Directors, and on the other hand, the Chief Executive Officer, who ensures the executive management of the company. The Chairman of the Board of Directors ensures that the Governance bodies are transparent and effective. His ongoing discussions with the Chief Executive Officer, who is also a Director, help strengthen the functioning of the Board and the efficiency of its meetings.

The Board of Directors approves the Group's strategic orientations, including the multi-year strategic orientations in terms of social and environmental responsibility, for which it is responsible. It oversees their implementation and pays particular attention to monitoring CSR performance. Its composition, which meets the requirements for independence, diversity and attendance, brings together personalities with complementary experience and skills, and a wide international outlook that the Board enhanced in 2022 with the appointment of Daniela Schwarzer as an Independent Director. Daniela Schwarzer, a German national, contributes her experience and her in-depth knowledge of the German economic and social environment and her CSR skills. Alix d'Ocagne, Chairwoman of the Covivio Foundation, is also Chairwoman of the Covivio CSR Committee; her societal commitments and experience also contribute to maintaining the highest standards of commitment, independence and competence within the Board of Directors.

The Board of Directors' expertise in the area of climate and biodiversity is ensured by the involvement of Patricia Savin, who has solid professional experience in this area as a lawyer specialising in the environment and Chairwoman of the Orée association. 71% of Directors have ESG skills or expertise (5.3.2.1.3).

The Board of Directors' strategic seminars, held every two years since 2015, successively in Berlin, Milan, London, Bordeaux and then Milan again, have enabled the Directors to get a better grasp of the local specificities of certain markets and to deal with long-term topics like the Group's climate strategy. At the strategic seminar held in June 2023 in Milan, the Directors discussed Covivio's societal commitments. The seminar was also an opportunity to listen to the testimony of a company with a mission and better understand the impact of such an approach.

It should be noted that the Board of Directors does not include any Director representing employees or representing employee shareholders. This lack of representation is due to the fact that the number of employees of the company and its subsidiaries is below the legal thresholds and that employee shareholding is below the legal threshold. It should be noted that two members representing the Social and Economic Committee attend all Board meetings in an advisory capacity and receive the same documents as those provided to the Directors. In addition, the terms of non-voting members Sergio Erede and Ariberto Fassati ended at the end of the General Meeting of 20 April 2023.

Subject to the approval by the General Meeting of 17 April 2024 of the resolutions relating to the renewal of the directorship of Christophe Kullmann, as well as the offices of independent Directors of Catherine Soubie and Patricia Savin:

―	the composition of Covivio's Board of Directors would remain the same
―	the proportion of independent Directors would be 50% (Christian Delaire, Alix d'Ocagne, Sylvie Ouziel, Olivier Piani, Patricia Savin, Daniela Schwarzer and Catherine Soubie). It should be noted that since Jean-Luc Biamonti was appointed Director of Covivio by the General Meeting of 31 January 2011, he reached the threshold of 12 years on 31 January 2023, resulting in him no longer qualifying as an Independent Director on the Board, within the meaning of Article 10.5.6 of the Afep-Medef Code. Jean-Luc Biamonti was appointed Chairman of the Board of Directors, in consideration of his in-depth knowledge of the company and its business sectors, as well as his solid professional experience. In 2022 he succeeded Jean Laurent, who for health reasons, decided to end his third term early and resign from his position as Director and Chairman of the Covivio Board, that he had occupied for nearly 12 years
―	the proportion of women on the Board would be maintained at 43% (Stéphanie de Kerdrel, Alix d'Ocagne, Sylvie Ouziel, Patricia Savin, Daniela Schwarzer and Catherine Soubie).

3.6.1.2.2 Composition and functioning of the Board of Directors' specialised Committees

The Board of Directors relies on specialised Committees, which supplement its work and provide it with informed opinions/ recommendations.

Following in particular the redefining of the role of the Board of Directors, which, under the impetus of the law of 22 May 2019 related to the growth and transformation of companies, the so-called Pacte law, acts not only in the pursuit of the company's corporate interest but also takes social and environmental issues related to its activity into consideration, the Board of Directors decided, on 21 July 2021, to create a CSR Committee to assist it in the conduct of its work in terms of environmental, societal and social responsibility, and to ensure that CSR issues are taken into account in the Group's strategy and its implementation.

Composed mainly of independent members, the CSR Committee is tasked with validating the Group's CSR strategy and monitoring its implementation, ensuring its consistency with Covivio's Purpose and the expectations of stakeholders. It works with the Audit Committee on CSR risk factors, and with the Appointments and Remunerations Committee on the determination of relevant CSR criteria in the context of executive remuneration as well as any governance issues identified by non-financial rating agencies.

4 specialised Committees support the Board's work

The Board now relies on the work of four specialised Committees set up within it.

Activity of the Board and of the four specialised Committees in 2023

The Board thus relies on the work of four specialised committees set up within it, particularly involved in the social, societal and environmental issues facing the Company's activities.

3.6.1.2.3 An efficient Board of Directors, whose remuneration promotes member attendance

―

Every year the Board of Directors discusses how it and its Committees operate, and formally assesses, at least every three years, its ability to meet the expectations of shareholders, periodically reviewing its composition and that of its Committees, and their organisation and working methods. Four formal assessments were carried out at the end of the 2013, 2016, 2019 and 2022 financial years. The last assessment, conducted under the direction of the Appointments and Remunerations Committee and carried out internally by means of an anonymous and very comprehensive questionnaire (based on the model proposed by Afep) sent to the Directors and non-voting members in office, made it possible to verify that the Board of Directors is considered balanced, effective, has a positive dynamic, and all the tools necessary to fulfil its mission. The positive momentum was continued in 2023, with work on the avenues for improvement proposed by the Directors and non-voting members. Some of these measures have been implemented. Details of these measures are presented in Section 5.3.2.2.6.3. of the Universal Registration Document

―

Through the application of the Board's Internal regulations, the company strives to prevent the occurrence of conflicts of interest, in particular when presenting investment opportunities submitted to the Board and/or to the Strategy and Investment Committee. Under these regulations, all Directors are required to make every effort possible to determine in good faith whether or not a conflict of interest exists. They must report this to the Chairman as soon as they are aware of any situation that may constitute a conflict between the company and themselves, the company which they represent, or any company of which they are employees or corporate officers.

The conflict-of-interest prevention system is presented in Section 5.3.2.2.6.1 of the Universal Registration Document and applies mutatis mutandis to the meetings of the other Committees set up by the Board. This applies in particular when, for any transaction being considered or undertaken by the company, a member of the Board or a company of which a Director is an employee or corporate officer might have competing interests or interests opposed to those of the company or the companies within its Group. In such a case, the Board member in question must refrain from participating in the discussions and deliberations of the Board and/or Strategy and Investment Committee and, more generally, observe a strict duty of confidentiality. In case of a standing conflict of interest, the Board member concerned (or the permanent representative of the legal-entity Board member concerned) must submit his or her resignation

―

For their work with the Board, Directors and, where applicable, non-voting members receive a remuneration, the amount of which is determined by the Board of Directors based on a maximum overall annual amount of €800,000 approved by shareholders at the Combined General Meeting of 19 April 2018. The remuneration includes a fixed component and a variable component linked to attendance at meetings and effective contribution to the work of the Board and its Committees. The remuneration policy for Directors approved by the General Meeting of 20 April 2023 provides for the allocation of an additional variable remuneration of €2,000 to each non-resident member physically present at meetings of the Board of Directors and committees (not cumulative on the same day) as well as the allocation, under the same conditions, of an additional allowance of €1,000 in the event of physical participation of the resident members in said meetings.

3.6.1.2.4 A Board of Directors attentive to CSR issues

CSR matters are regularly referred to the Board in order to incorporate them in the company's strategic guidelines. The actions taken by the company in this area are presented to the CSR Committee, which reports to the Board of Directors. The latter examines the company's performance in terms of environmental, social and corporate responsibility, monitors the progress made in relation to established objectives, approves major opportunities for improving CSR performance and compares the progress of the companies within the Group with that of peers in Europe.

The Board of Directors also examines non-financial information published by the company, with a particular focus on social and environmental matters. It also analyses the ratings issued by non-financial rating agencies. Lastly, it ensures that the ethical rules set out by the Group are applied and assesses sponsorship and philanthropic policies and actions carried out.

The progress made in relation to the objectives in each of the four areas of Covivio's CSR policy is regularly presented to the Board of Directors.

In 2023, the Board of Directors, drawing on the work of the CSR Committee, focused on the actions to be taken by Covivio (i) to achieve its objective of reducing its greenhouse gas emissions by 40% between 2010 and 2030, (ii) to preserve biodiversity, (iii) to engage its stakeholders in achieving its CSR action plan. Operational roadmaps directing the implementation of decarbonisation actions have been drawn up by each activity, as well as an assessment of the investments required. Throughout 2023, three Board of Directors meetings had at least one CSR topic on the agenda. The main work carried out in 2023 by the Board of Directors and the CSR Committee is presented in Sections 5.3.2.3.2 and 5.3.3.4.4 respectively of the Universal Registration Document.

In addition to the overall mapping of the risks and the special analyses conducted annually on matters that may represent specific risks (such as Cyber risks, the risks of Fraud and Corruption and CSR risks), in 2023, the Board of Directors carried out a review of the action plans put in place to address the main risks identified (3.2.4.2) and approved the 2024 audit plan and risk management policy.

3.6.1.3 An Executive Committee attentive to CSR performance

The Executive Committee, which met several times a month in Paris or one of the major cities in which the company operates, and on some 30 occasions in 2023, has a European dimension, and approves every decision or significant operation concerning the asset rotation policy, the monitoring of subsidiaries and investments, the financial policy etc. It also addresses issues of organisation, CSR, tools, etc.

At the end of the 2023 financial year, the Executive Committee, whose composition is presented in section 5.3.1.4 of the Universal Registration Document, brings together 10 members, including representatives of all Covivio "country" and "product" activities, and corporate functions.

The diversity of this Committee, in terms of gender, age, experience, nationality and skills, helps it support the Group's strategic challenges. The Covivio Executive Committee is responsible for approving all investments and disposals whose value exceeds €5 million. Its members are in charge of implementing the CSR objectives of the Group within their area of responsibility and in coordination with the Sustainable Development Department.

The results achieved in this domain are now systematically incorporated into the criteria for determining the variable portion of the remuneration of Committee members. Objectives related to the progress of Covivio's carbon targets are thus taken into account in the calculation of the variable remuneration of the Chief Executive Officer, the Deputy CEO and the members of the Executive Committee; as are the issues of increasing the number of women in the teams and attracting and developing talent. These objectives are then rolled out operationally to the Group's managers, according to their operational responsibilities, and are communicated during individual appraisals.

3.6.1.4 Significant increase in the CSR component in executive compensation

At the end of 2022, the Board of Directors, on the proposal of the CSR Committee, decided, with regard to the Long-Term Incentives for the Chief Executive Officer and the Deputy CEO:

―	to increase the weighting of CSR criteria from 20% to 30%
―	to use the criterion of female representation every other year, alternating with the criterion of employee commitment, each counting for 15%
―	keep as another criterion the progress of the greening of the portfolio, weighted at 15%
―	set the target of the commitment criterion for the LTI 2022 at +10pts vs the benchmark
―	set the target for the certification of the portfolio for the LTI 2022 at 100% by 2025.

Thus, the remuneration policy for executive corporate officers approved by the shareholders at the Shareholders' Meeting on 20 April 2023 now provides that the weighting of CSR criteria must represent 30% of long-term remuneration, with the following criteria: greening of the portfolio and achievement of the carbon trajectory objectives (15%) and, every other year, for the remaining 15% (ii) level of employee commitment or percentage of women in teams.

Similarly, the CSR Committee proposed to the Remunerations Committee, which accepted, an increase in the weighting of the CSR criteria related to the annual bonus of corporate officers: 12% of the 2024 bonus of Christophe Kullmann will be subject to the implementation of a biodiversity and circular economy policy, the overhaul of the responsible purchasing policy and the achievement of target ratings from certain non-financial agencies. Similarly, 15% of Olivier Estève's 2024 bonus will be subject to obtaining environmental certifications for ongoing developments, obtaining biodiversity labels and the promotion of the circular economy for ongoing projects, and the introduction of the new responsible purchasing policy for all projects.

These CSR objectives, as well as other more operational ones, are rolled out across the entire Executive Committee, all the National Management Committees and in the operational teams.

3.6.1.5 General Meetings, a way to share the CSR policy and committed actions

Since 2013, Covivio has provided its shareholders with an online resource, avoiding the use of the post which uses lots of paper, enabling them to receive their meeting invitation and obtain details and input voting instructions prior to the General Meeting.

As a reminder, at the close of its General Meeting of 17 April 2015, Covivio maintained the principle of "one share = one vote", approved by the shareholders, thereby waiving the automatic assignment of double voting rights provided by the Florange law of 29 March 2014.

3.6.1.5.1 Minutes of the General Meeting of 20 April 2023

On the occasion of this General Meeting, shareholders were able to discuss the Company's strategy, and in particular this year, the Company's climate plan and its objectives for 2030, as well as the Company's development and outlook. The General Meeting was an opportunity to report to shareholders on the objectives of Covivio's CSR policy, praised several times by non-financial rating agencies, and on the development of the objectives in the 2022 fiscal year, with a particular focus on:

―	the five strategic priorities put in place to achieve the 2010-2030 carbon trajectory reduction ambition (-40%)
―	the concrete example of low-carbon buildings with the presentation of the Stream Building asset
―	costing of "green" investments, representing €254 million (i.e. €32 million per year by 2030), which will improve energy performance in order to achieve the Group's carbon ambitions
―	environmental certification of the real estate portfolio, which stood at 93% at the end of 2022
―	maintaining the separation of the functions of Chairman of the Board and Chief Executive Officer on the occasion of the appointment of Jean-Luc Biamonti, and strengthening of CSR criteria in the long-term remuneration of executive officers
―	the good customer culture results in the three business segments
―	strong societal commitment, notably with the support of the Covivio foundation in Europe as part of long-term partnerships.

General Meeting statistics

	Combined General Meeting of 20 April 2023		Change 2022/2023
	Ordinary resolutions	Extraordinary resolutions	Ordinary resolutions	Extraordinary resolutions
Number of shareholders present	41	39	57.69%	50%
Number of shareholders represented or having voted by post	2,705	2,710	+7.47%	+7.67%
Number of votes cast	77,932,996	77,932,382	+4.90%	+4.89%
Attendance rate	83.05%	83.05%	+4.2 points	+4.2 points
Resolution approval rate	98.21%	99.32%	+1.56 points	+1.80 point

3.6.1.5.2 Shareholder consultation on "say on pay"

The shareholders at the General Meeting on 20 April 2023 voted on elements of individual remuneration paid in the 2022 fiscal year, or allocated in that year to successive Chairmen of the Board of Directors in office in 2022, to the Chief Executive Officer, the Deputy CEO and the Directors in respect of the 6th, 7th, 8th, 9th and 10th resolutions (ex post "say on pay", "global" and "individual"), as well as on the remuneration policy applicable to them under the 11th, 12th, 13th and 14th resolutions (ex ante "say on pay"). The average approval rates for the resolutions relating to the ex ante and ex post "say on pay" were 97.29% and 97.57% respectively, thus confirming the balance and effectiveness of the remuneration policy for corporate officers.

Details of the results of the "say on pay" resolutions

Corporate officers	Ex ante "say on pay"	"Global" ex post "say on pay"	"Individual" ex post "say on pay"
Jean Laurent, Chairman of the Board of Directors until 21 July 2022	99.85%	99.08%	99.89%
Jean-Luc Biamonti, Chairman of the Board of Directors from 21 July 2022			99.84%
Christophe Kullmann, Chief Executive Officer	94.40%		92.98%
Olivier Estève, Deputy CEO	96.10%		94.68%
Directors	99.93%		N/A

The amounts resulting from the implementation of these corporate officer remuneration policies and paid for the fiscal year ended 31 December 2023 or allocated in the same year, will be submitted to the approval of the shareholders at the General Meeting to be held on 17 April 2024 as part of the approval of the 6th to 9th resolutions (ex post "say on pay").

3.6.1.5.3 Shareholder consultation on "say on climate"

For many years, Covivio has conducted a carbon and climate policy recognised by various organisations (SBTi, CDP, rating agencies, etc.), which contributes to the defence of the value of Covivio's portfolio as well as the sustainability of its economic model (3.3). On 20 April 2023, the shareholders voted on Covivio's climate and carbon policy by voting a "say on climate" resolution, for which they issued an advisory opinion 94.19% in favour of the company's climate strategy and its objectives in this area for 2030.

The Board of Directors intends to renew this consultation of shareholders at least every four years until the end of the climate plan in 2030, or if necessary, at shorter intervals depending on the news to be shared. During these intervals, the General Meeting will report annually on the progress of the objectives of the climate strategy and the main actions carried out.

3.6.1.6 Addressing shareholder concerns and ensuring the transparency of financial information

Covivio does its utmost to provide institutional investors and individual shareholders with quality information regarding its business and strategy. It is thus conducting substantive work to consolidate its long-term relationship of trust with the financial community and to develop its market transparency.

The company is also helping to raise the level of professionalism within the industry and to issue high-quality information by means of its active involvement with the IEIF (Real Estate Savings Institution), the FEI (Fédération des Entreprises Immobilières et Foncières), and EPRA (European Public Real Estate Association). Covivio participates annually in around ten conferences for international investors and organised by renowned brokerage firms (such as Bank of America, Goldman Sachs, Morgan Stanley, Kepler Cheveux, Kempen, etc).

Covivio also takes a proactive attitude in dealings with institutional investors. As such, management holds some 400 meetings every year with their main representatives, particularly when the annual and semi-annual results are released in the major European and US markets, and sets up around ten site visits of representative assets in its portfolio for these groups.

3.6.1.6.1 Covivio listening to individual shareholders

Covivio publishes an annual newsletter for its 17,000 individual shareholders, posted on its website. Covivio also provides them with a dedicated section on its website, a documentation service as well as a shareholders' freephone number (+33 (0) 805 400 865) and an e-mail address (actionnaires@covivio.fr).

3.6.1.6.2 A policy recognised by the 2023 EPRA Awards

The quality and transparency of Covivio's financial and non-financial reporting were recognised at the 2023 EPRA Annual Conference with two "Gold" awards for the quality of its financial and non-financial reporting.

3.6.2 Ethics and the fight against fraud and corruption, foundations of Covivio's governance

Promoting fair and ethical practices with all of the Group's stakeholders is a major challenge for Covivio and represents a response to the "fraud/corruption/ethics" risk identified in the CSR risk mapping. A breach of the ethical rules of the profession and the Group's internal procedures, or insufficient control of the commercial (negotiation, contracting, invoicing, etc.) and financial processes could lead to significant risks: negative reputational impact, loss of stakeholder confidence, financial losses, hindrance to the development of activities, etc. To remedy this, Covivio has implemented numerous risk management actions, in accordance with the regulations of the various countries in which it operates and the most recognised international standards in the sector. Its Code of Ethics, serving as a Code of Conduct within the meaning of law no. 2016-1691, known as "Sapin 2", was updated in 2022; it is enforceable against its employees and covers all ethical issues that Covivio may have to face.

In addition, Covivio signed the Diversity Charter in 2010 and has been a member of the UN Global Compact since 2011. Covivio incorporates the 10 principles of the Global Compact into its strategy and practice and promotes them to its stakeholders, in particular its suppliers, through its Responsible Procurement Charter and yearly publication of a Communication on Progress (COP) ⁽¹⁾. Since it's 2018 COP, Covivio has reached the highest standard, GC Advanced, which demonstrates the fact that the Group is embracing the SDGs (Sustainable Development Goals) to a greater extent and highlights the connections between them and Covivio's CSR strategy.

3.6.2.1 An Ethical Charter for greater responsibility

A fundamental element of Covivio's ethics and compliance approach, its Ethical Charter is adapted, from a common base, to the specific legal and regulatory requirements of each country; it covers all of the Group's employees across Europe. It is available on the Covivio website and intranet (http:// www.covivio.eu). The Ethical Charter defines the ethical principles that all employees must follow as part of their professional practices and in their behaviour with external contacts. The core principles set out in this charter are as follows: respecting laws and regulations (prevention of insider trading, combating money-laundering, bribery and similar crimes); respect for the environment and individuals (health and safety in the workplace, prevention of discrimination, respecting third parties); protecting the company's assets (reputation, property, resources) and transparency of information provided; protection of personal data. The charter has been regularly revised: in 2015, 2018 and 2022. The new whistleblowing system was incorporated into the Ethics Charter in 2024.

Since it is legally enforceable against Group employees, the Ethical Charter is interpreted as a Code of Conduct within the meaning of the Sapin 2 law. As such, any breach of the rules laid down therein, and notably any proven incident of corruption, could, in addition to legal sanctions, be subject to heavy penalties leading to the possible termination of the employment contract or mandate of the person responsible.

The Charter reiterates in particular Covivio's "zero tolerance" in terms of corruption and influence peddling, as well as the possibility, for any stakeholder (internal or external), to report any act contrary to the principles of the Charter through the whistleblowing system, via the Group's whistleblowing platform https://covivio.integrityline.com. In 2023, no employee was subject to a disciplinary sanction related to non-compliance with the Ethical Charter. Moreover, there were no complaints or convictions against Covivio on these grounds.

Employees aware and trained

The Internal Risks, Compliance, Audit and Control department has put in place regular and compulsory training courses for all of its employees. These training sessions, called "Process Mornings", focus in particular on compliance with cybersecurity and data protection rules, awareness of the principles set out in the Ethics Charter (fight against corruption and influence peddling, Group policy in the area of gifts and invitations, whistleblowing system) and reminders of procedures. Initially launched in France, this practice now involves all of the Group's employees across Europe. A copy of the charter is also handed to every new employee when hired by the Group.

The Ethics Officer

The Ethics Officer reports only to General Management. This function has been deployed in France ⁽²⁾ , Germany and Italy. They have a duty of confidentiality with regard to information forwarded to them. Its mission includes several aspects: advising employees on conflicts of interest, gifts and other benefits received or offered; reminder of stock market law rules; monitoring the application of ethical rules; regulatory monitoring in terms of ethics.

In 2023, 94 notifications were received and processed by the three Group Ethics Officers. In addition, they recorded 353 declarations of gifts received for which the cumulative annual value may not exceed €150 (39 in France, 112 in Italy, and 202 in Germany) in accordance with the Group's Gift Policy. Solicitations of the ethics officer over risks of conflict of interest in Germany are exclusively related to the acquisition or leasing of housing held by Covivio.

Number of requests from compliance officers in 2023

⁽¹⁾ https://www.unglobalcompact.org/what-is-gc/participants/15495

⁽²⁾ The Ethics Officer France also covers issues that may be raised by employees in Spain and Luxembourg.

The Group Compliance Officer

This function was created in 2018. The Group Compliance Officer coordinates the compliance activity at the European level with the support of local officers: the Compliance Officer Germany and the Compliance Officer Italy. As part of their Group compliance duties, the Group Compliance Officer:

―	contributes to the drawing up of the Ethical Charter and its updating
―	ensures its dissemination to all employees whenever it is updated and forwards it to all new employees when they take up their positions
―	is in charge of its implementation: in this respect, they ensure that each department puts in place the necessary means to satisfy the provisions that apply to it, and draws on the support of the Audit function to conduct the checks deemed necessary
―	maps and updates the corruption and influence peddling risks and ensures the proper implementation of the resulting recommendations
―	conducts due diligence with regard to third parties
―	in the event of failure to comply with these rules, ensures implementation of appropriate measures.

3.6.2.2 Preventing the risk of fraud and corruption

In compliance with the tenth principle of the UN Global Compact, Covivio has strengthened its risk prevention system in the areas of fraud, corruption and related infringements, such as influence peddling.

3.6.2.2.1 Fraud risk management

The separation between scheduling (ordering) and launching (payment) operations, as well as procedures related to competitive bidding thresholds, significantly reduce the risk of fraud. During the "Process Morning" sessions, the company makes employees who handle transactions aware of the risks of fraud and corruption and reminds them of the Group's zero tolerance approach. "Anti-fraud" audits are carried out regularly within the Group. These measures are the subject of internal control and assessment procedures under the audit plans validated by the Audit Committee.

3.6.2.2.2 Prevention of corruption risks

Covivio has implemented the eight measures to prevent the risks of corruption and influence peddling covered by the Sapin 2 law.

1) Corruption risk mapping

The cornerstone of the corruption risk prevention system, Covivio's corruption risk map wis regularly updated to reflect changes in the Group's activities. The recommendations resulting from the mapping are implemented at the European level by the Group Compliance Officer and are regularly monitored by the Audit Committee and the Management Committees in each country.

2) 3) Procedures for assessing the situation of customers and suppliers and accounting control procedures

With regard to the major risks identified by the mapping, Covivio pays particular attention to the integrity of its main customers and suppliers by carrying out appropriate analyses, and implements specific accounting reporting aimed at detecting any acts of fraud and corruption in its accounts. Transactions that are deemed sensitive - such as acquisitions, sales of assets or companies, construction and renovation work - are guided by appropriate procedures, especially regarding links with intermediaries. Covivio uses a dedicated platform (in addition to Ecovadis, 3.4.2.1) to carry out a due diligence on suppliers identified as being at risk by the corruption risk mapping. This platform analyses the probity of the companies concerned, the legal representatives and their subsidiaries. This analysis identifies potential international sanctions, any negative press and indicates the politically exposed persons.

4) 5) Code of Conduct and disciplinary regime

The Covivio Ethical Charter has been updated in accordance with the requirements of the Sapin 2 law to act as a Code of Conduct. In France, it is appended to the company's Internal regulations; it has similar binding force in Germany and Italy. Failure to comply with the provisions contained therein, and more particularly any proven act of corruption or influence peddling, would give rise to strict penalties, which could go as far as the termination of the employment contract or of the mandate of the person implicated.

More information in section 3.6.2.1 of this Document.

6) The whistleblowing system

Covivio introduced a whistleblowing system in 2015. Its operation has been amended in order to take into account the provisions of the Sapin 2 law. The whistleblowing may be covered by a wide range of events: crime or misdemeanour, gross and manifest violation of national or international regulations, serious threats or damage to the general interest, etc. It also enables any employee to report any departures from the principles laid down by the Ethical Charter, and more generally, in the following areas: financial, accounting, banking, anti-corruption, combating discrimination and harassment at work.

The whistleblowing system is made available to Group employees and all stakeholders. It is the subject of an internal procedure disseminated and explained at European level. Partners and suppliers are made aware of its existence through the Covivio website while it is also mentioned in the Responsible Procurement Charter (3.4.2.1) rolled out in France. At the end of 2023, a new whistleblowing platform was set up in France, Germany and Italy. In particular, it makes it possible to better manage the confidentiality of whistleblowers.

Covivio undertakes to protect the whistleblower:

―	by maintaining confidentiality about their identity
―	against possible victimisation, disciplinary action or legal proceedings, provided that the system is not used in an abusive manner and that it is employed in good faith.

The Whistleblowing platform also makes it possible to anonymously report any reprehensible behaviour. These alerts are processed if the seriousness of the facts mentioned is established and sufficient details of the facts are given. The whistleblowing procedure was updated in 2024 to take into account changes in regulations intended to strengthen the protection of whistleblowers.

After completing an internal inquiry into a notification that does not lead to any legal and/or disciplinary proceedings, Covivio anonymises all the data gathered after a period of two months, and only keeps an Excel file which contains no personal data. The sole purpose of this file is to analyse the system. In 2023, no alert was recorded.

7) Employee training

Covivio employees are regularly made aware of the risks of corruption as part of the morning sessions of the process (see paragraphs 2.4.2.1.4 and 3.6.2.1 of this Document). The most exposed employees receive more in-depth training on these risks.

8) Monitoring and evaluation of the measures implemented

The Audit department carries out regular checks on the proper implementation of measures to prevent corruption risks (see paragraph 2.4.2.4.1) as part of the annual audit plans approved by the Audit Committee.

Summarised procedure for managing alerts

3.6.2.3 Guaranteeing fair competition

Covivio, in its business activities and more specifically in its sales, acquisition and construction work, complies with competition provisions and regulations in force in each country. The company has therefore implemented specific procedures: a competitive bidding process is mandatory above a certain threshold and the bidding framework includes procedures that have been put in place and validated by General Management.

Depending on the amounts and types of transactions, several companies must be consulted. In the same manner, the company uses a procedure for opening bids involving a minimum of two employees and the drafting of the opening of bids minutes for some tender processes in order to ensure the widest degree of transparency and fairest competition possible. Audits are performed regularly in order to ensure compliance with internal procedures in this area.

The risk of anti-trust behaviour is limited within the framework of Group activities as there are many owners of real estate assets.

3.6.2.4 Combating money laundering

Covivio, as a real estate operator, is bound by regulations on combating money-laundering in: its real estate leasing activity; registered office service; purchase and sale of buildings; transactions regarding business assets; and shares or holdings in real estate companies which might conceal one or more money-laundering activities subject to criminal sanctions. Undertaking capital transactions, Covivio is also obliged to notify the French Public Prosecutor of any suspicious transactions of which it is aware.

Covivio and its subsidiaries have introduced a system for combating money laundering and the financing of terrorism (LBC/FT), in keeping with each country's legal and regulatory requirement, in the form of a procedure that lists and describes actions to be taken by the employees concerned. The Group Compliance Officer and the Risks, Compliance, Audit and Internal Control Officer are LBC/FT (anti-money laundering and financing of terrorism) Managers as well as TRACFIN (French Ministry of Finance's anti-money laundering agency) Contacts and Registrants.

This system is based on vigilance when initiating business relationships and in relation to the third parties involved. The implementation of the LBC/FT system is supported by regular training campaigns during the "Process Mornings".

3.6.2.5 Association with, or membership of, domestic or international organisations

Covivio actively contributes to the French government's building policy through its strong commitment within working groups and professional associations. Covivio is a member of the sustainable development commissions of EPRA and of the Fédération des Entreprises Immobilières (FEI), whose CSR commission is chaired by Covivio Sustainable Development Director Jean-Éric Fournier. He is also Vice-Chairman of the French HQE-GBC Alliance, a member of the Board of Directors of the Orée association and of the Sustainable Building Plan Office, and Coordinator of the RICS France Professional Sustainability Group. Covivio's contribution to the promotion of sustainable real estate is evidenced by its involvement in various working groups alongside associations (including the HQE-GBC Alliance, Orée and the SBA-Smart Building Alliance), and with scientific bodies (such as Politecnico di Milano), as well as its participation in studies at a national level (Palladio, IFPEB etc.) and a Europe-wide level (EPRA, RICS, etc.), and its commitment to initiatives such as Act4nature of the Global Compact and the Diversity Charter.

3.6.2.6 Supervision of donations, memberships, contributions and lobbying activities

Covivio benefits from a specific procedure covering the following activities:

―	participation of companies in donations (including sponsorship, philanthropy), memberships of or contributions to professional or non-professional associations or foundations
―	lobbying (interest representation)/Public Relations operations carried out using specialised firms.

This procedure reiterates the principle that, while respecting the commitments of its employees who, as citizens, participate or wish to participate in public life in a private capacity, Covivio does not finance any public official, political party, public office holder or candidate for such office, nor any trade union or religious organisation that is not recognised as being of public interest.

Donations, philanthropy, sponsorship and similar operations related to equal opportunities are intended to be carried out via the company's Foundation created in 2020. All other actions are centralised by the Management, which submits the request to the Compliance Officer in order to carry out due diligence prior to definitive approval of the project by General Management.

Membership of professional associations by Covivio employees (whose contribution is covered by the company) is also subject to internal validation processes. The Compliance Officer may be asked to carry out a prior probity investigation.

If Covivio Développement, a Covivio subsidiary, comes into contact with and works with local authorities as part of its development activities, it will, in accordance with the regulations, report its actions for the year 2023 to the Répertoire des Représentants d'Intérêts (Directory of Interest Representatives) kept by the High Authority for Transparency in Public Life (HATVP).

Covivio may nonetheless join professional associations carrying out such activities or call on specialised firms which are subject to particular vigilance and whose use is strictly governed by Covivio's procedures.

Therefore, any request for recourse to such a firm is addressed to the Director of Institutional Relations, who, with the support of the Compliance Officer, performs the following procedures:

―

verifying the Firm's adherence to the rules and ethical principles laid down by law. no. 2013-907 of 11 October 2013 on the transparency of public life

―

obtaining, from the proposed Firm, any document certifying compliance with these rules, in particular by signing an Ethical Charter (e.g.: charter of the Association Française des Conseils en Lobbying et Affaires Publiques)

―

verifying the correct registration of the Firm in the Directory of Lobbyists provided to the French authority for transparency in public life

―

as part of the contract, formalising the Firm's missions and establishes a remuneration structure based on an hourly rate: written activity reports and formal meeting reports

―

ensuring that the contract includes the obligations stipulated by article 18-5 of the law no. 2013-907 of 11 October 2013 on the transparency of public life, and more particularly the prohibition of:

―	offering a gift of any kind to a public official, to one of his or her relatives or agents, regardless of the amount
―	paying a public official to take part in a conference
―	attempting to obtain information by fraudulent means
―	selling the information or documents it obtains from a public official.

If it deems it necessary, the Compliance Officer may initiate a probity survey of the envisaged Firm, the results of which will be submitted to the General Management, the only body authorised to sign this type of contract.

3.6.3 Protection of corporate/smart building data

When conducting its business Covivio creates and generates a large amount of data and is thus subject to the General Data Protection Regulation (GDPR). Furthermore, its properties use an ever-increasing number of computerised facilities and services that use digital systems. By becoming a "smart building", with ever-closer links to the "smart city" via a two-way data exchange, the building, in a similar manner to Covivio's activities, is exposed to the risk of cyber-attacks, data losses, degradation and theft, etc. Aware of these risks, Covivio has started a number of initiatives intended to protect its activity and that of its stakeholders. Some of them are described below and presented in greater depth in Chapter 1 (Risk factors) of this document.

3.6.3.1 Covivio steps up its digital transformation

As a European real estate player, Covivio has for several years undertaken a profound digital transformation, based on a collective reflection process. Conducted at the European level by the Chief Transformation Officer (Laurie Goudallier) and the country IT teams, in collaboration with the members of the Executive Committee and Transformation Committees, this digital transformation is a continuous improvement process designed to serve customer satisfaction, portfolio performance and the operational efficiency of Covivio's teams in Europe. By adopting a digital roadmap, the Group's ambition is to lead a sustainable and thoughtful digital transformation, in the service of Covivio's strategy, by closely associating all stakeholders at the European level.

Improving customer satisfaction by offering an innovative user experience

Among its digital transformation levers, Covivio places special emphasis on the services offered in its buildings. It is for this reason that Covivio has partnered with the start-up Witco to deploy a mobile application accessible to all occupants of its office buildings (3.4.3). The co-living activity is also widely relayed through the Covivio To Share brand and web platform, to enable future customers to easily find Covivio's offers in Germany.

Adapting buildings to new technological developments

From 2022 onwards, Covivio will deploy an IT architecture model that will operate all of the data collected through new means (applications, software, sensors (IoT), customer surveys, etc.). In line with this objective and the Group's sustainable development strategy, Covivio has already begun to monitor around twenty of its buildings in order to measure energy consumption more precisely, via the creation of a portal that collects data in real time.

Building on synergies to strengthen the operational efficiency of teams

Covivio is deploying an ambitious strategy to adopt the best practices of its market, particularly in terms of tools, in a process of European integration of its business lines, its organisation and its information system, and to maintain greater control of its growth and its IT costs.

These tools are intended, for example, to support the digitisation of customer relations and the development of the Group's activities in Europe, notably via the Salesforce solution, intended to equip Covivio with a CRM (Customer Relation Management) software package or the deployment of the SAP software for France in 2021, for Italy in 2023 and Germany by 2024. With a view to managing change, the implementation of these tools gives rise to workshops to reflect on processes and the harmonisation of working methods (10% of the total workforce mobilised for SAP).

At the same time, always with the aim of accelerating the cooperation and integration of the IT function, a project to move the Group's IT infrastructure systems to the cloud was implemented. It allows more flexibility in the management of business applications and significantly improves the security of IT infrastructures at the European level.

3.6.3.2 Data protection: a key corporate issue

Personal data protection

Within the framework of the European Regulations concerning "the protection of natural persons with regard to the processing of personal data and on the free movement of such data" known as the General Data Protection Regulation (GDPR), intended to reinforce existing national regulations, Covivio has rolled out a pan-European compliance system for Group companies.

This system involves in particular:

―	the appointment of a Data Protection Officer (DPO) in France, Italy and Germany: the DPO Italy (who can be contacted by email: dpo@covivio.it) is also responsible for European coordination
―	a network of "GDPR Correspondents": these operational points of contact for the DPOs are tasked with ensuring that processing carried out by their department is compliant and instilling a culture of personal data protection in the entity for which they are responsible
―	putting in place a European GDPR Code describing the Group's personal data protection policy and the technical and organisational measures deployed for this purpose
―	the drafting of internal procedures to frame compliance with the system
―	training on best practices in personal data protection, covering all Group employees
―	creating a personal data processing register that is at the disposal of the Supervisory Authorities
―	general work on data security (personal or not), via the appointment of an external Information Systems Security Officer, in charge of detecting any security breaches and implementing ad hoc remedial measures
―	regular audits to ensure that employees comply with Group procedures.

Ensuring the security of all data processed by the Group

Beyond the protection of personal data, the subject of cybersecurity also became a major operational issue. The number of cyber-attacks is increasing, with a raised risk of financial losses, business continuity or image as a consequence. Very regularly, Covivio informs its employees about "Fraud and Cyber" risks as part of "Process Mornings" and via warning emails. This awareness-raising of employees is one of the many indicators monitored monthly by the Risk Committee. Phishing campaigns are also organised by the IT department to measure the knowledge of employees on cyber aspects and organise targeted training sessions when necessary.

In addition to creating the position of Information Systems Security Manager (ISSM) which is outsourced to a recognised firm, and an ISSP (Information Systems Security Policy), Covivio has developed a Business Recovery Plan (BRP) and regularly conducts intrusion tests and phishing campaigns on its Information System. This type of test aims to simulate hacking attempts in a realistic manner in order to verify, in practical terms, the Information System's level of resistance to these attacks, with a view to putting in place new and better adapted means of detection and protection. In particular, in 2022 Covivio finished the implementation of an SOC (Security Operation Center) in partnership with a recognised player in the market.

Covivio is thus continuously improving the Protection and Detection aspects of its IS security and the Compliance of its Information System.

The use of artificial intelligence tools may represent a risk for the Group, in particular through the dissemination of confidential/ sensitive information to unauthorised third parties. This is why Covivio has defined a set of internal rules to be followed by all Group employees to ensure the protection of personal data and information treated as confidential.

Lastly, the Group's employees are subject to strictly regulated data access authorisations, differentiated according to their responsibilities with respect for the principle of least privilege, and are bound by confidentiality clauses, as are external service providers.

Harmonising practices within the Group

In line with the Group's transformation approach, Covivio continues to work towards bringing its three countries closer together in the area of IT systems. Thus, by pooling resources and aligning existing processes, the Information Systems departments in France, Germany and Italy converged towards a European Information Systems department.

The majority of digital issues are now addressed at the European level, and on all layers of the Information Systems: Security, Infrastructures, Architecture and Application Domains with in particular the gradual deployment of SAP on the basis of a European Core Model.

3.6.3.3 Data protection: a real estate issue

A growing number of cyber-attacks throughout the world target properties and their facilities (including BMS, cameras, access control and lighting). In 2016, Covivio commissioned Arp-Astrance to conduct a study on the risks of cyber-attacks on its building portfolios. In 2022, Covivio commissioned Mazars to define the principles of a Safety Insurance Plan for its buildings. This "SAP" includes a grid of security requirements for services as well as a security control plan for buildings.

These studies enabled the company to characterise the solutions required in order to reduce the risk for building management networks and equipment. In addition, note that connectivity services within new buildings are subject to R2S (Ready to Service) labelling for certain projects. Covivio signed the "Connected, solidarity-based and human-centric buildings" charter promoted by the French government, the HQE-GBC Alliance and the Smart Building Alliance (SBA). The work undertaken with these associations, of which the company is a member, has led to guidelines being defined for obtaining the R2S label. The first building awarded the R2S label is one of Covivio's properties in Toulouse, "21 Marquette". This label enables a building's performance to be measured in terms of connectivity and information security for the user. Several Covivio programmes benefit from the R2S label or its American equivalent WiredScore, mainly based on connectivity criteria. Each of the spaces deployed in France and Italy by Wellio benefits from one of these two labels.

Thus, the first WiredScore-certified building in Italy is the Wellio via Dante in Milan and the future Covivio tower located at AlexanderPlatz in Berlin is one of the very first buildings to test the SmartScore label. In the buildings it leases, Covivio ensures that it offers good conditions of access to communication networks, as well as connectivity services in common areas. Covivio also offers operated office services, in particular for IT aspects, where Covivio becomes the network operator in private spaces. This makes it possible to offer connectivity, audiovisual services or any other needs and enables a seamless user experience between private spaces and common areas, while ensuring the security and availability of services.

3.7 CSR performance

3.7.1 Environmental indicators

The non-financial reporting scope is based on the scope of Covivio's consolidated financial reporting. The information provided below relates to the following strategic activities: France Offices, Italy Offices, Germany Offices, German Residential, and Hotels Sector Europe. In order to maintain consistency with Covivio's financial approach, assets under construction or renovation are excluded from the reporting scope, as are assets acquired or sold during the year. This exclusion also applies to the corporate scope, i.e. the main offices housing Covivio's employees.

Processing and analysis of consumption data

In accordance with Covivio's environmental reporting protocol (updated in 2020), consumption data is collected by the Group's Sustainable Development Department from Property Management Departments and operators (invoices for common areas), tenants, and producers and distributors of energy and water. After consolidation, these data are restated to make climate adjustments (winter and summer) in order to make the results comparable from one year to the next. The data is analysed internally, leading to investigations with the parties concerned and then to verification by an independent third party (3.8.1).

Reporting tables and compliance with EPRA recommendations

As a member of the EPRA Sustainable Development Commission, Covivio helps promote good practices in environmental reporting in the European real estate sector. Covivio has incorporated EPRA recommendations in its internal and external reporting.

In order to simplify the reading of the reporting elements, the environmental indicators highlight the following distinction:

―

operational control: this is the scope targeted by the EPRA recommendations. These are the common areas of multi-tenant buildings, for which the teams of Covivio or its subsidiaries have direct management. This scope also includes Covivio's head offices in Europe. Environmental information relating to common areas and equipment is collected internally by the property management services on behalf of the owner. These are Covivio Scopes 1 and 2 (direct emissions linked to energy consumption of the scope managed directly and paid for by Covivio);

―

outside operational control: this involves buildings or parts of buildings over which Covivio or its subsidiaries do not have direct management, which is provided by the tenant, from whom data on consumption of water and energy, and data on volumes of waste (if available) are collected. These are either tenant areas of multi-tenant buildings or single-tenant buildings (hotels and offices). For Covivio, these asset classes, as well as German Residential, are Scope 3, relating to the energy consumption of the buildings it owns. For the calculation of ratios, the types of surface areas used are: m ² SHON in France - m ² GLA in Italy - m ² Nütz in Germany.

The table below presents an overview of the methodology and reporting process implemented by Covivio, in line with the EPRA's Best Practice Recommendations (BPR) and its general principles, in order to achieve the highest level of compliance.

Compliance with EPRA recommendations (2017 EPRA's BPRs)

○ Compliance ▼ Partial compliance □ Non-compliant

EPRA Performance Indicators	Compliance self-assessment	Covivio's approach
ENVIRONMENTAL INDICATORS (3.7.1.1 TO 3.7.1.6 FOR THE DIFFERENT PORTFOLIOS)
Total electricity consumption	○	Elec-Abs - Covivio reports its electricity consumption, taking into account renewable energy production. The annual total energy consumption data is gathered based on invoices (meter readings) using the process described above. The consumption is presented in terms of final energy. The total is expressed as final energy as well as primary energy.
(in annual kWh)
Total energy consumption of heating and cooling networks	○	DH&C-Abs - Covivio reports its energy consumption from district heating and cooling, collected based on invoices (meter readings) using the process described above. The consumption is presented in terms of final energy. The total is expressed as final energy as well as primary energy.
(in annual kWh)
Total energy consumption from fuels	○	Fuel-Abs - Covivio reports its total energy consumption from fuels (natural gas, fuel oil and wood), based on invoices (meter readings) using the process described above. The consumption information and totals are expressed in terms of both final and primary energy.
(in annual kWh)
Energy intensity of buildings	○	Energy-Int - Covivio reports its energy intensity ratios calculated per m ² on the basis of the invoiced amounts (meter readings): energy (in kWh), divided by the corresponding occupied surface area (in m ² ). The consumption ratios are presented in terms of final energy and primary energy. Consumption is reported "process included" with the exception of telephone equipment in Orange assets.
(in kWh/m ² /year)
Total direct GHG emissions	○	GHG-Dir-Abs - Covivio reports on all of its carbon emissions in tonnes of CO ₂ equivalent per year (in tCO ₂ e/ year) based on fuel energy bills (natural gas, fuel oil and wood). These are Scope 1 emissions as described in the GHG Protocol.
(in annual tCO ₂ e)
Total indirect GHG emissions	○	GHG-Indir-Abs - This data is reported in tonnes of CO ₂ equivalent per year (in tCO ₂ e/year) based on the energy invoices for electricity and district heating and cooling. These are Scope 2 emissions as described in the GHG Protocol.
(in annual tCO ₂ e)
Carbon intensity of buildings	○	GHG-Int - Covivio reports its carbon intensity ratios per m ² , as calculated directly from the invoice (meter readings) divided by the corresponding occupied surface area (in m ² ).
(kgCO ₂ e/m ² /year)
Total volume of water withdrawn by source	○	Water-Abs - Covivio reports its total annual water consumption in m ³ for all of its portfolios in operation and the headquarters buildings occupied by its own employees. The total annual water consumption data is gathered on the basis of the invoiced amounts (meter readings) using the process described above.
(in m ³ annual)
Water intensity of buildings	○	Water-Int - Data are reported in m ³ /m ² SHON/year. The intensity ratios per m ² are calculated by comparing the volumes collected to the corresponding occupied surface area (in m ² ).
(in litres/person/year or m ³ /m ² /year)
Total mass of waste by treatment method	○	Waste-Abs - Waste is collected by public organisations directly linked to the municipalities. Covivio pays for this service through local taxes. It is not possible to monitor the total waste mass, except for assets with private waste contractors (as specified in the comments accompanying the waste reporting tables).
(in annual tonnes)		The proportion of waste by disposal method (in % of total waste) is indicated when it can be monitored by the service providers.
Year-on-year like-for-like comparison	○	Elec-LfL, DH&C-LfL, Fuels-LfL, GHG-Dir-LfL, GHG-Indir-LfL, Water-LfL, Waste-LfL - The data is calculated on a like-for-like scope for energy, carbon, water and waste and is used to assess changes from one year to the next for assets owned over the last 24 months whose consumption is known for that period. Example:
		in year N-1, consumption data was collected on 70 assets, with a possible reporting scope of 90 assets;
		in year N, consumption data was collected on 95 assets, with a possible reporting scope of 100 assets;
		of these, data was collected on 65 assets present in both N-1 and N, while there were 93 assets held in both N-1 and N.
		→ The like-for-like basis therefore relates to 65 of 93 assets.
Type and number of sustainably certified assets	○	Cert-Tot - This indicator is expressed by dividing the value of the assets with certification at 31 December N by the value of the total portfolio held by a business on the same date.
SOCIAL INDICATORS (3.7.2.1 TO 3.7.2.3 FOR THE THREE ENTITIES)
Employee gender diversity	○	Diversity-Emp - The breakdown of workforce by gender is reported each year in the corporate reporting section of this document where Covivio provides data on each country, contract type and level of responsibility at 31 December N.
Gender pay ratio	○	Diversity-Pay - The three social reporting entities (UES France, Italy and Germany) publish an annual salary gap ratio (average annual gross salaries), broken down by level of responsibility (manager/non-manager). Wage gaps are examined and various measures have been put in place to ensure gender equality within the Group, in particular within the framework of the Ex-aequo programme.
Employee skills training and development	○	Emp-Training - This indicator is expressed in number of hours of training per employee trained during the year. In addition, the three social reporting entities (France, Italy and Germany) also published the workforce training rate (number of employees trained in relation to the total workforce at 31 December N). The training indicators take into account all professional training carried out internally and externally.
Employee performance appraisals	○	Emp-Dev - The individual appraisal and skills development interview is a core element of the Group's Human Resources policy. It is the subject of a monitoring indicator (annual number of appraisal interviews/workforce) in all Group entities.
New hires and turnover	○	Emp-Turnover - Covivio publishes the total number of departures and recruitments that took place during the year. Each entity's Human Resources Department also publishes a departure turnover rate (for permanent employees) and a recruitment rate (for permanent employees).
Employee health and safety	○	H&S-Emp - On workplace accidents, the following indicators are published: accident rate, severity rate and frequency rate; absenteeism rate; number of deaths and occupational diseases.
Asset health and safety assessments	○	H&S-Asset - Each building managed by Covivio and its subsidiaries is monitored for environmental risks, taking into account local regulations. The monitoring and analysis are explained by business activity in this document. The risks for which the occupant is responsible are excluded from the scope of this indicator (3.3.3).
Asset health and safety compliance	○	H&S-Comp - Covivio publishes the number of convictions related to non-compliance with environmental or health regulations. The HR section of this document also includes any incidents related to these aspects occurring within the boundaries of its own premises (3.3.3).
Community engagement, impact assessment and development programmes	○	For several years, Comty-Eng - Covivio has been carrying out a socio-economic impact study of its offices, residential and hotel activities in Germany, France and Italy. A summary of this study is presented in this document. In addition, many initiatives are implemented in the various regions where the company operates.
		These are discussed in Section 3.4.
SOCIETAL INDICATORS
Composition of the highest governance body	○	Gov-Board - Covivio publishes all information related to governance. Information on the Board of Directors and its Committees are:
		summarised in Section 3.6 of this document; and
		discussed in more detail in Chapter 5 of Covivio's Universal Registration Document (URD): number of executive members; number of independent Directors; attendance rate for each Director and for each Committee; list of Directors' mandates; number of members with expertise in environmental and social issues.
Process for nominating and selecting the highest governance body	○	Gov-Select - The process for selecting and appointing Directors is explained, both for the Board of Directors and for its Committees, in the Governance section of this Document (Chapter 6).
Process for managing conflicts of interest	○	Gov-Col - The various initiatives in place to prevent the risk of conflicts of interest for corporate officers (publication of the list of mandates and functions exercised, family ties, etc.) are described in Chapter 5 of Covivio's URD.

EPRA general recommendations and principles	Compliance self-assessment	EPRA's BPR guidelines and methodology
Organisational boundaries	○	As in previous years, reporting is based on what is known as "operational control", which corresponds to the scope within which Covivio, its subsidiaries and investments directly manage energy, water and waste. The results for this scope are printed on a green background in the tables in Section 3.7.1.
		This environmental reporting scope is based on the consolidated financial scope for the sake of consistency with the other sections of the management report and with the provisions of Decree no 2017-1265 of 9 August 2017 for the implementation of Order no 2017-1180 of 19 July 2017 relating to the publication of non-financial information known as the "Statement of Non-Financial Performance" (SNFP). The scope thus includes the different strategic activities: France Offices, Italy Offices, Germany Offices, German Residential (Covivio Immobilien) as well as Hotels and Service Sector Europe (Covivio Hotels).
		The reporting scope for year N includes all assets owned at 31 December N. Assets under construction, in redevelopment, vacant, or acquired or sold during the year are not included. If an asset is sold during the year, the tenant will not necessarily provide consumption data if there no longer exists any legal connection with the former owner of the asset.
		The environmental reporting period runs from 1 January to 31 December.
Distribution of consumption owner -tenant	○	Covivio's reporting is separated into three levels of data collection and analysis:
		"corporate" scope: these are the head office buildings hosting Covivio teams;
		"operational control" scope: this includes buildings under full management, for which Covivio controls the management of shared equipment (i.e. equipment located in common areas) and the consumption of water and energy (lighting, collective heating, etc.). These are Scope 1 and 2 emissions as described in the GHG Protocol. The reporting is based on invoices, with no estimates or resorting to submeters;
		"tenant area" scope: this relates to the tenant areas of multi-let buildings (where Covivio has "operational control" over the building's common areas, while tenants are responsible for individual energy consumption and water use) and of single-let buildings, where users are wholly responsible for managing building facilities as well as the building's energy and water consumption.
		Covivio does not rebill its tenants for energy, with the exception of energy used in the common areas of multi-let buildings, which is rebilled under operating expenses.
		Estimates are not made. However, data may be extrapolated based on the intensity ratios, thus permitting the assessment of the environmental footprint for the portfolio as a whole. Performance measurements involving extrapolated data are clearly indicated in the tables (white background, outside EPRA scope).
Consumption reporting - headquarters buildings	○	As indicated previously, Covivio reports the consumption for buildings occupied by its own employees. The results are presented in Section 2.7.1.6 under the "Headquarters" heading.
Intensity normalisation	○	The Intensity ratios by m ² are calculated by comparing the environmental data for a year N concerning energy, water and carbon with the corresponding occupied area, expressed in terms of m ². These calculations are used to measure efficiency for each indicator. In France, a distinction is drawn between final energy (fe), which is consumed and invoiced, and primary energy (pe), which is required to produce final energy.
Segmental analysis	○	Covivio has structured its analysis by segment and business line: France Offices, Italy Offices, Germany Offices, German Residential (Covivio Immobilien), and the Hotels & Service Sector Europe (Covivio Hotels).
Coverage ratio of data collection	○	The coverage ratio is indicated by segment and business line in each reporting table (energy, carbon, water and waste). For each indicator, the extent of the reporting scope is calculated by surface area (in % of m ² ) and by number of assets.
Narrative on performance	○	Covivio provides comments and explanations on environmental performance trends and data: in Section 3.3; in the chapter containing performance data for each business (see Chapter 3.7.1).
Assurance - external verification by an independent third party	○	Since the 2011 report, corporate, societal and environmental information have been verified by an independent third party. The EPRA indicators and compliance with its methodology are verified as part of the process, as is compliance with GRI Standards (2017 version), CRESD and the GHG emissions report. The assurance letter is published in Covivio's annual URD and in its Sustainable Development Report. These documents are available in both English and French on the Covivio website.
Location of EPRA Sustainability Performance	○	The performance measurements and corresponding EPRA overarching recommendations are disclosed and reported in Covivio's annual URD and in its Sustainable Development Report. These documents are available in both English and French on the Covivio website.
Measurements Materiality	○	A materiality study was conducted at the Group level. Published each year in Covivio's URD and Sustainable Development Report. The most material issues are given special attention and closely monitored, in line with the CSR risk mapping conducted by the Group in 2018.

3.7.1.1 France Offices

The France Offices reporting scope covers 42 sites out of the 99 in the financial scope. Exclusions concern assets under development or under renovation, residential development (10 assets), acquired or sold during the year as well as buildings located in condominiums or ASLs. All consumption figures are based on invoices based on direct statements, without the use of estimates. Some of the data is obtained directly via the energy suppliers' digital platforms. A consumption monitoring system was rolled out in 2019 for 100% of the "operational control" scope (3.3.2).

Certifications - (Cert-tot) (Section 3.3.1.3)

As of 31 December 2023, 100% (in value, Group Share) of the "core" Office assets, i.e. long-term assets set to remain in the portfolio, had HQE and/or BREEAM certifications (construction and/or operation) and/or were ISO 50001 certified.

Energy - Direct and indirect energy consumption by primary energy source and energy intensity ratio for buildings in use

The consumption reported (with climate adjustment) below uses the consumption collected according to two scopes as explained above: "operational control" corresponding to the common areas of multi-tenant buildings; "non-operational control" corresponding to the tenant areas of multi-tenant buildings and single-let buildings that all benefit from private sub-meters (SASB IF-RE410a.2).

			Multi-let buildings
			Scope "operational control"		Scope of "private areas"
Total energy consumption (Abs)	GRI standards	EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)			196,947	256,986	176,864	217,159
Reporting scope coverage by surface area (in %)			100%	100%	100%	100%
Number of applicable properties			14/14	14/14	14/14	14/14
Proportion of estimated data			0%	0%	0%	0%
Intensity (in KWhfe/m ² SHON/ year)	CRE1	Energy-Int	114.7	115.8	57.1	44.0
Intensity (in kWhpe/m ² SHON/ year)			141.3	141.2	104.7	74.8
Total direct energy (in kWhfe)	302-1	Fuel-Abs	5,516,900	6,272,168	-	-
Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	5,516,900	6,272,168	-	-
Natural gas (direct energy) - renewable source			0	0	-	-
Fuel oil (direct energy)	302-1	Fuel-Abs	0	0	-	-
Wood (direct energy)	302-1	Fuel-Abs	0	0	-	-
Total indirect energy (in kWhfe)	302-1	Elec-Abs	17,072,635	23,495,864	10,092,610	9,555,342
Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	4,023,061	5,007,075	6,485,767	5,151,457
Electricity (indirect energy) - renewable source			4,161,673	6,618,873	3,606,843	4,403,885
Renewable energy production	302-1	Elec-Abs	0	68,444	-	-
of which solar			0	68,444	-	-
District heating and cooling (indirect energy)	302-1	DH&C-Abs	8,887,900	11,869,916	-	-
Total energy consumption (in kWhfe)			22,589,534	29,768,032	10,092,610	9,555,342
Total energy (in GJ)			81,322	107,165	36,333	34,399
Total energy consumption (in kWhpe)			27,819,514	36,277,230	18,524,108	16,252,236
Estimated consumption for vacant space (in kWhpe)			0	0	0	0
Estimated consumption in occupied areas for which data is not available (in kWhpe)			0	0	0	0
Total measured and extrapolated energy consumption (in kWhpe)			27,819,514	36,277,230	18,524,108	16,252,236

	Single-let buildings		Portfolio total
Total energy consumption (Abs)	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)	345,894	266,489	542,841	523,475
Reporting scope coverage by surface area (in %)	83%	82%	88%	90%
Number of applicable properties	33/35	26/28	47/49	40/42
Proportion of estimated data	0%	0%	0%	0%
Intensity (in KWhfe/m ² SHON/ year)	135.2	139.0	146.3	145.9
Intensity (in kWhpe/m ² SHON/ year)	238.1	239.5	237.1	222.3
Total direct energy (in kWhfe)	11,777,695	9,916,500	17,294,595	16,188,669
Natural gas (direct energy) - non-renewable source	11,682,995	9,816,049	17,199,895	16,088,217
Natural gas (direct energy) - renewable source	0	0	0	0
Fuel oil (direct energy)	94,700	100,451	94,700	100,451
Wood (direct energy)	0	0	0	0
Total indirect energy (in kWhfe)	34,976,035	27,130,967	62,141,281	60,182,173
Electricity (indirect energy) - non-renewable source	27,399,174	20,605,527	37,908,003	30,764,060
Electricity (indirect energy) - renewable source	2,495,842	4,849,526	10,264,358	15,872,284
Renewable energy production	0	45,399	0	113,843
of which solar	0	45,399	0	113,843
District heating and cooling (indirect energy)	5,081,020	1,675,913	13,968,920	13,545,829
Total energy consumption (in kWhfe)	46,753,730	37,047,467	79,435,875	76,370,841
Total energy (in GJ)	168,313	133,371	285,969	274,935
Total energy consumption (in kWhpe)	82,372,657	63,834,652	128,716,279	116,364,118
Estimated consumption for vacant space (in kWhpe)	0	0	0	0
Estimated consumption in occupied areas for which data is not available (in kWhpe)	17,310,745	14,435,180	17,236,015	13,395,776
Total measured and extrapolated energy consumption (in kWhpe)	99,683,401	78,269,832	145,952,293	129,759,895

	Total consumption (Abs) - " Operational control" scope				Emissions on a like-for-like basis (LfL) -"Operational control" scope
		2022	2023			2022
Coverage of the reporting scope by surface area (in m ² SHON)	EPRA BPRs	196,947	256,986		EPRA BPRs	165,306
Reporting scope coverage by surface area (in %)		100%	100%			100%
Reporting scope in number of applicable properties		14/14	14/14			10/10
Proportion of estimated data		0%	0%			0%
Paid by owner				Change
Total Electricity (in kWh)	Elec-Abs	8,184,735	11,625,948	42.0%	Elec-LfL	6,774,889
of which on a tenant submeter		0	0			0
of which shared services		8,184,735	11,625,948	42.0%		6,774,889
Total district heating and cooling (in kWh)	DH&C-Abs	8,887,900	11,869,916	33.6%	DH&C-LfL	8,664,719
of which on a tenant submeter		0	0			0
of which shared services		8,887,900	11,869,916	33.6%		8,664,719
Total Gas-Fuel oil-Wood (in kWh)	Fuel-Abs	5,516,900	6,272,168	13.7%	Fuels-LfL	6,015,606
of which on a tenant submeter		0	0			0
of which shared services		5,516,900	6,272,168	13.7%		6,015,606
			INTENSITY (in KWhfe/m ² SHON/year)			129.8
			INTENSITY (KWhpe/m ² SHON/year)

	Emissions on a like-for-like basis (LfL) -"Operational control" scope		Like-for-like (LfL) scope - Total portfolio
	2023		2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)	165,306		418,759
Reporting scope coverage by surface area (in %)	100%		85%
Reporting scope in number of applicable properties	10/10		35/38
Proportion of estimated data	0%		0%
Paid by owner		Change			Change
Total Electricity (in kWh)	6,945,706	2.5%	31,504,590	31,510,065	0.0%
of which on a tenant submeter	0		0	0
of which shared services	6,945,706	2.5%	31,504,590	31,510,065	0.0%
Total district heating and cooling (in kWh)	7,736,041	-10.7%	10,492,754	9,411,954	-10.3%
of which on a tenant submeter	0		0	0
of which shared services	7,736,041	-10.7%	10,492,754	9,411,954	-10.3%
Total Gas-Fuel oil-Wood (in kWh)	6,272,168	4.3%	17,300,553	16,188,669	-6.4%
of which on a tenant submeter	0		0	0
of which shared services	6,272,168	4.3%	17,300,553	16,188,669	-6.4%
	126.8	-2.3%	141.6	136.4	-3.7%
			224.6	204.6	-8.9%

Carbon - Total direct or indirect GHG emissions and greenhouse gas emissions from buildings

In compliance with the GHG Protocol, Scopes 1 and 2 correspond to the "operational control" scope, while emissions linked to consumption from tenant areas and single-let buildings come under Scope 3.

			Multi-let buildings
			"Operational control" scope		Scope of "private areas"
	GHG Protocol		Scopes 1 & 2		Scope 3 (excluding upstream)
Total carbon emissions (Abs)	GRI standards	EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)			196,947	256,986	176,864	217,159
Reporting scope coverage by surface area (in %)			100%	100%	100%	100%
Number of applicable properties			14/14	14/14	14/14	14/14
Proportion of estimated data			0%	0%	0%	0%
Carbon intensity (in kgCO ₂ e/m ² SHON/ year)	305-4	GHG-Int	8.5	8.6	1.4	0.8
Total emissions (in tCO ₂ e)			1,671	2,201	246	174
of which direct emissions (in tCO ₂ e)	305-1	GHG -Dir-Abs	932	1,160	0	0
of which indirect emissions (in tCO ₂ e)	305-2	GHG -Indir-Abs	738	1,040	246	174
Estimated emissions on vacant areas (in tCO ₂ e)			0	0	0	0
Estimated emissions for occupied areas where no data is available (in tCO ₂ e)			0	0	0	0
Total extrapolated carbon emissions (in tCO ₂ e)			1,671	2,221	246	174

	Single-let buildings		Portfolio total
	Scope 3 (excluding upstream)		Scopes 1, 2 and 3 (excluding upstream)
Total carbon emissions (Abs)	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)	345,894	266,489	542,841	523,475
Reporting scope coverage by surface area (in %)	83%	82%	88%	90%
Number of applicable properties	33/35	26/28	47/49	40/42
Proportion of estimated data	0%	0%	0%	0%
Carbon intensity (in kgCO ₂ e/m ² SHON/ year)	10.0	10.6	9.9	9.9 ^*
Total emissions (in tCO ₂ e)	3,455	2,825	5,372	5,200
of which direct emissions (in tCO ₂ e)	2,000	1,843	2,933	3,004
of which indirect emissions (in tCO ₂ e)	1,454	982	2,439	2,196
Estimated emissions on vacant areas (in tCO ₂ e)	0	0	0	0
Estimated emissions for occupied areas where no data is available (in tCO ₂ e)	726	639	719	599
Total extrapolated carbon emissions (in tCO ₂ e)	4,181	3,464	6,091	5,798

^* This data takes into account the low level of emissions associated with green electricity contracts. With coefficients that do not take this into account, the total emissions of the assets would amount to 5,587 tCO ₂ e, with a carbon intensity of 10.7 kgCO ₂ e/m ² /year.

	GRI standards		Total emissions (Abs) -"Operational control" scope
		EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)			196,947	256,986
Reporting scope coverage by surface area (in %)			100%	100%
Reporting scope in number of applicable properties			14/14	14/14
Proportion of estimated data			0%	0%	Change
Carbon intensity (in kgCO ₂ e/ m ² SHON/year)	305-4	GHG-Int	8.5	8.6	0.9%
GHG Protocol						EPRA BPRs
Scope 1 - Total direct emissions (in tCO ₂ e)	305-1	GHG-Dir-Abs	932	1,160	24.5%	GHG-Dir-LfL
Scope 2 - Total indirect emissions (in tCO ₂ e)	305-2	GHG -Indir-Abs	738	1,040	40.9%	GHG -Indir-LfL
Scope 3 - Other emissions (in tCO ₂ e)		GHG -Indir-Abs	0	0		GHG -Indir-LfL
Total emissions (in tCO ₂ e/year)			1,671	2,201
CHANGE IN CARBON EMISSIONS			31.7%

	Emissions on a like-for-like basis (LfL) - "Operational control" scope			Like-for-like (LfL) scope - Portfolio total
	2022	2023		2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)	165,306			418,759
Reporting scope coverage by surface area (in %)	100%			85%
Reporting scope in number of applicable properties	10/10			35/38
Proportion of estimated data		0%	Change		0%	Change
Carbon intensity (in kgCO ₂ e/ m ² SHON/year)	9.8	10.0	1.8%	11.1	10.7	-4.1%
GHG Protocol
Scope 1 - Total direct emissions (in tCO ₂ e)	1,017	1,160	14.1%	2,934	3,004	2.4%
Scope 2 - Total indirect emissions (in tCO ₂ e)	611	496	-18.8%	1,723	1,463	-15.1%
Scope 3 - Other emissions (in tCO ₂ e)	0	0		0	0
Total emissions (in tCO ₂ e/year)	1,628	1,657		4,657	4,467
CHANGE IN CARBON EMISSIONS	1.8%			-4.1%

Water - Total water consumption and water intensity ratio for buildings in use

In each of the buildings included in the reporting scope, the water used comes from a single source: municipal water supplies. Covivio does not take samples directly from groundwater. According to the WRI Aqueduct map ⁽¹⁾ , 1% and 0%, respectively, of the water scope (in surface area) is located in a region with a high or very high risk of baseline water stress (SASB IF-RE140a), i.e. 0.6% of water consumption. 94.2% of multi-let assets (in surface area) are equipped with water submeters (SASB IF-RE 410a.2).

―	Multi-let buildings: the landlord receives the invoices; tenants do not have individual contracts.
―	Single-let buildings: the tenant has an individual contract with the water supply company. All the elements reported below are taken from invoices.

Water consumption shows an upward trend this year, mainly in connection with the return to a pre-Covid level of occupancy.

			Multi-let buildings
			"Operational control" scope		Scope of "private areas"
Total water consumption (Abs)	GRI standards	EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)			196,947	256,986	Not applicable
Reporting scope coverage by surface area (in %)			100%	100%
Number of applicable properties			14/14	14/14
Water intensity (in m ³ /m ² SHON/year)	CRE2	Water-Int	0.29	0.35
Total water consumption (in m ³ )	303-1	Water-Abs	58,044	90,216
Estimated water consumption in vacant space (in m ³ )			0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )			0	0
Total extrapolated water consumption (in m ³ )			58,044	90,216
Water consumption - Like-for-like (LfL)
Coverage of the reporting scope (in m ² SHON)			165,311		Not applicable
Reporting scope coverage by surface area (in %)			100%
Reporting scope in number of applicable properties			10/10
Proportion of estimated data			0%
Water intensity (in m ³ /m ² SHON/year)			0.30	0.33
Like-for-like water consumption (in m ³ )	303-1	Water-LfL	49,173	54,407
CHANGE IN WATER CONSUMPTION INTENSITY			10.6%

	Single-tenant		Portfolio total
Total water consumption (Abs)	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)	292,284	319,511	489,231	576,497
Reporting scope coverage by surface area (in %)	70%	98%	79%	99%
Number of applicable properties	20/35	27/28	34/49	41/42
Water intensity (in m ³ /m ² SHON/year)	0.24	0.34	0.26	0.34
Total water consumption (in m ³ )	69,858	107,704	127,902	197,920
Estimated water consumption in vacant space (in m ³ )	0	0	0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )	30,187	2,440	33,019	2,485
Total extrapolated water consumption (in m ³ )	100,045	110,144	160,922	200,406
Water consumption - Like-for-like (LfL)
Coverage of the reporting scope (in m ² SHON)	233,705		399,016
Reporting scope coverage by surface area (in %)	72%		81%
Reporting scope in number of applicable properties	16/28		26/38
Proportion of estimated data	0	%	0%
Water intensity (in m ³ /m ² SHON/year)	0.27	0.35	0.28	0.34
Like-for-like water consumption (in m ³ )	62,159	81,594	111,332	136,001
CHANGE IN WATER CONSUMPTION INTENSITY	31.	3%	22.2%

⁽¹⁾ Beta Aqueduct 2021 - Baseline Water Stress country ranking - https://www.wri.org/aqueduct.

Waste - Total mass of waste in tonnes by type and disposal method

In France, waste removal is carried out by municipal services which do not weigh the waste and do not provide any follow-up information. Recording tonnage data is possible only where waste is managed by private waste contractors. The volume of waste has reduced this year mainly due to more robust reporting and the extension of the data collection scope to include new single-tenant buildings.

			Multi-let buildings
			Scope		Scope
			"operational control"		"private areas"
Total waste production (Abs)	GRI	EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)			181,770	227,555	Not applicable
Coverage of scope in surface area (in %)			92%	89%
Number of applicable properties			11/14	12/14
Proportion of estimated data			35%	43%
Total waste (in tonnes)	306-2	Waste-Abs	596	486
Total hazardous waste (in tonnes)			0	0
of which recycled, re-used or composted waste	306-2	Waste-Abs	162	163
in %			27%	34%
of which incinerated (including with energy recovery)	306-2	Waste-Abs	NC	NC
of which landfill	306-2	Waste-Abs	NC	NC
of which other disposal methods	306-2	Waste-Abs	NC	NC
Rate of selective collection			100%	100%
Total extrapolated production of waste (in tonnes)			640	548
Total waste production (like-for-like)
Coverage of the reporting scope by surface area (in m ² SHON)			154,774
Coverage of scope in surface area (in %)			94%
Number of applicable properties			8/10
Proportion of estimated data			43%
Rate of selective collection			100%	100%
Total waste (in tonnes)	306-2	Waste-LfL	450	331
Total hazardous waste (in tonnes)			0	0
of which recycled, re-used or composted waste			132	110
in %			29%	33%
of which incinerated (including with energy recovery)			NC	NC
of which landfill			NC	NC
of which other disposal methods			NC	NC
CHANGE IN TOTAL WASTE PRODUCTION			-26.5%

	Single-let buildings		Portfolio total
Total waste production (Abs)	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)	42,140	136,783	223,910	364,339
Coverage of scope in surface area (in %)	10%	42%	36%	62%
Number of applicable properties	4/35	10/28	15/49	22/42
Proportion of estimated data	59%	47%	41%	46%
Total waste (in tonnes)	183	413	779	899
Total hazardous waste (in tonnes)	0	0	0	0
of which recycled, re-used or composted waste	25	119	187	282
in %	14%	29%	24%	31%
of which incinerated (including with energy recovery)	NC	NC	NC	NC
of which landfill	NC	NC	NC	NC
of which other disposal methods	NC	NC	NC	NC
Rate of selective collection	100%	100%	100%	100%
Total extrapolated production of waste (in tonnes)	1,815	987	2,141	1,440
Total waste production (like-for-like)
Coverage of the reporting scope by surface area (in m ² SHON)	15,549		170,324
Coverage of scope in surface area (in %)	5%		35%
Number of applicable properties	3/28		11/38
Proportion of estimated data	87%		55%
Rate of selective collection	100%	100%	100%	100%
Total waste (in tonnes)	130	59	579	390
Total hazardous waste (in tonnes)	0	0	0	0
of which recycled, re-used or composted waste	7	8	139	117
in %	5%	13%	24%	30%
of which incinerated (including with energy recovery)	NC	NC	NC	NC
of which landfill	NC	NC	NC	NC
of which other disposal methods	NC	NC	NC	NC
CHANGE IN TOTAL WASTE PRODUCTION	-54.4%		-32.	7%

3.7.1.2 Green Bond Portfolios

Offices

The portfolio consists of office assets that meet the criteria of the Sustainable Bond Framework (3.3.4.2). On like-for-like scope, final energy consumption fell by 6% and greenhouse gas emissions by 7%.

				Portfolio total
	Energy/carbon	GRI	EPRA BPRs	2022	2023
Energy/ carbon	Coverage of the energy/carbon reporting scope by surface area (in m ² )			434,214	617,311
	Reporting scope coverage by surface area (in %)			89%	89%
	Intensity (kWhfe/m ² /year)	CRE1	Energy-Int	191.5	146.1
	Intensity (kWhfe/m ² /year)			270.2	209.5
	Total direct energy (kWhfe)	302-1	Fuel-Abs	9,376,297	11,011,280
	Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	9,376,297	11,011,280
	Natural gas (direct energy) - renewable source	302-1		0	0
	Fuel oil (direct energy)	302-1	Fuel-Abs	0	0
	Wood (direct energy)	302-1	Fuel-Abs	0	0
	Total indirect energy (kWhfe)	302-1	Elec-Abs	73,785,729	79,168,107
	Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	27,076,479	31,948,219
	Electricity (indirect energy) - renewable source	302-1		27,013,911	31,449,671
	Renewable energy production	302-1	Elec-Abs	127,459	281,260
	of which solar			127,459	281,260
	District heating and cooling (indirect energy)	302-1	DH&C-Abs	19,822,798	15,770,217
	Total energy consumption (in kWhfe)			83,162,026	90,179,387
	Total energy (GJ)			299,383	324,646
	Total energy consumption (in kWhpe)			117,310,279	129,342,723
	CARBON INTENSITY (kgCO ₂ e/m ² /year)	305-4	GHG-Int	15.9	12.2
	GHG Protocol
	Scope 1 - Total direct emissions (in tCO ₂ e)	305-1	GHG-Dir-Abs	1,585	2,037
	Scope 2 - Total indirect emissions (in tCO ₂ e)	305-2	GHG-Indir-Abs	5,318	5,500
	Scope 3 - Other emissions (in tCO ₂ e)		GHG-Indir-Abs	0	0
	Total emissions (tCO ₂ e/year)			6,903	7,537
Water	Reporting scope coverage by surface area (in m ² )			442,424	614,551
	Reporting scope coverage by surface area (in %)			90%	88%
	WATER INTENSITY (m ³ /m ² /year)	CRE2	Water-Int	0.39	0.45
	Total water consumption (in m ³ )	303-1	Water-Abs	174,108	273,531
Waste	Reporting scope coverage by surface area (in m ² )			200,525	401,522
	Scope coverage (in %)			41%	58%
	Total non-hazardous waste (in tonnes)	306-2		415	958
	of which % recycled			32%	40%

Hotels

The portfolio consists of office assets that meet the criteria of the Sustainable Bond Framework (3.3.4.2). On like-for-like scope, energy consumption was up slightly by 2% due to the hotel recovery, which continued in 2023. Greenhouse gas emissions were down by 8%, mainly due to the improvement in the portfolio's energy mix (-7% fossil fuel and growth in green electricity in the portfolio).

				Portfolio total
	Energy/carbon	GRI	EPRA BPRs	2022	2023
Energy/ carbon	Coverage of the energy/carbon reporting scope by surface area (in m ² )			1,203,685	1,256,663
	Reporting scope coverage by surface area (in %)			93.6 %	95.3 %
	Reporting scope coverage by number of buildings	302-1		198/215	221/227
	Propoertion of estimated data			0 %	0 %
	Intensity (kWhfe/m ² /year)	CRE1	Energy-Int	172.0	172.9
	Intensity (kWhfe/m ² /year)			253.9	256.2
	Total direct energy (kWhfe)	302-1	Fuel-Abs	59,215,787	57,087,607
	Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	58,821,064	56,979,777
	Natural gas (direct energy) - renewable source	302-1		0	0
	Fuel oil (direct energy)	302-1	Fuel-Abs	394,722	107,830
	Wood (direct energy)	302-1	Fuel-Abs	0	0
	Total indirect energy (kWhfe)	302-1	Elec-Abs	147,773,778	160,134,788
	Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	79,323,180	88,430,587
	Electricity (indirect energy) - renewable source	302-1		31,326,603	39,205,871
	Renewable energy production	302-1	Elec-Abs	86,576	94,571
	of which solar			86,576	94,571
	District heating and cooling (indirect energy)	302-1	DH&C-Abs	37,123,995	32,498,330
	Total energy consumption (in kWhfe)			206,989,565	217,222,395
	Total energy (GJ)			745,162	782,001
	Total energy consumption (in kWhpe)			305,654,666	321,949,274
	CARBON INTENSITY (kgCO ₂ e/m ² /year)	305-4	GHG-Int	22.6	20.5
	GHG Protocol
	Scope 1 - Total direct emissions (in tCO ₂ e)	305-1	GHG-Dir-Abs	10,766	10,624
	Scope 2 - Total indirect emissions (in tCO ₂ e)	305-2	GHG-Indir-Abs	16,403	15,186
	Scope 3 - Other emissions (in tCO ₂ e)		GHG-Indir-Abs
	Total emissions (tCO ₂ e/year)			27,169	25,809
Water	Reporting scope coverage by surface area (in m ² )			1,236,667	1,179,985
	Reporting scope coverage by surface area (in %)			96%	89%
	WATER INTENSITY (m ³ /m ² /year)	CRE2	Water-Int	1.55	1.38
	Total water consumption (in m ³ )	303-1	Water-Abs	1,913,077	1,626,031
Waste	Reporting scope coverage by surface area (in m ² )			510,607	486,376
	Scope coverage (in %)			40%	37%
	Total non-hazardous waste (in tonnes)	306-2		1,142	1,781
	of which % recycled			27%	38%

3.7.1.3 Italy Offices

The environmental reporting of the Italy Offices portfolio covers buildings under direct management (multi-tenant), corresponding to the EPRA scope as mentioned above, and a few single-tenant buildings for which tenants have agreed to share their consumption.

Certifications and labels - (Cert-tot) (3.3.1.3)

At 31 December 2023, 100% (in value, Group Share) of office buildings in Italy were certified for construction (LEED/ITACA/BREEAM) or operation (BraVe/BREEAM In-Use). This percentage is expressed relative to all the assets held on this date, including both assets under construction and in operation.

Energy - Direct and indirect energy consumption by source and energy intensity ratio of assets

Consumption data is based on invoices obtained from the property management company or energy suppliers. All of the assets have submeters for tenant areas (SASB IF-RE 410a.2), of which the energy consumption is not reported here. In order to reflect the full performance of multi-tenant buildings, an estimate was made to supplement the data on the tenant areas of these buildings (i.e. 1,725 MWh of electricity representing 527 tCO ₂ e). This estimate was made on the basis of data that could be collected on the tenant areas of multi-tenant buildings (50,976 m ² ).

			Multi-let buildings
			"Operational control" scope		Scope of "private areas"
Total energy consumption (Abs)	GRI standards	EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )			133,308	135,916	64,190	50,976
Reporting scope coverage by surface area (in %)			100%	100%	NC	NC
Number of applicable properties			11/11	11/11	10/11	7/11
Proportion of estimated data only for tenant areas			0%	0%	0%	0%
Intensity (in KWhfe/m ² /year)	CRE1	Energy-Int	116.1	114.3	34.9	29.5
Intensity (in kWhpe/m ² /year)			116.1	114.3	69.5	58.2
Total direct energy (in kWhfe)	302-1	Fuel-Abs	2,827,530	2,814,761	-	-
Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	2,827,530	2,814,761	-	-
Natural gas (direct energy) - renewable source			0	0	-	-
Fuel oil (direct energy)	302-1	Fuel-Abs	0	0	-	-
Wood (direct energy)	302-1	Fuel-Abs	0	0	-	-
Total indirect energy (in kWhfe)	302-1	Elec-Abs	12,645,479	12,721,108	2,241,260	1,505,310
Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	0	0	2,018,969	1,327,448
Electricity (indirect energy) - renewable source			9,897,258	10,295,408	222,291	177,862
Renewable energy production	302-1	Elec-Abs	16,612	39,048	-	-
of which solar			16,612	39,048	-	-
District heating and cooling (indirect energy)	302-1	DH&C-Abs	2,764,834	2,425,699	-	-
Total energy consumption (in kWhfe)			15,473,009	15,535,869	2,241,260	1,505,310
Total energy (in GJ)			55,703	55,929	8,069	5,419
Total energy consumption (in kWhpe)			15,473,009	15,535,869	4,462,126	2,965,503
Estimated consumption for vacant space (in kWhpe)			0	0	0	0
Estimated consumption on occupied areas without information (kWhfe) multi-tenant private areas						1,724,696
Estimated consumption in occupied areas for which data is not available (in kWhpe)			0	0	NC
Total measured and extrapolated energy consumption (in kWhpe)			15,473,009	15,535,869	NC	NC

	Single-let buildings		Portfolio total
Total energy consumption (Abs)	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )	304,555	233,419	437,863	369,335
Reporting scope coverage by surface area (in %)	79%	77%	84%	84%
Number of applicable properties	21/33	19/28	32/44	30/39
Proportion of estimated data only for tenant areas	0%	0%	0%	3%
Intensity (in KWhfe/m ² /year)	142.7	169.5	139.7	158.0
Intensity (in kWhpe/m ² /year)	270.2	295.8	233.4	246.8
Total direct energy (in kWhfe)	368,788	4,938,739	3,196,318	7,753,501
Natural gas (direct energy) - non-renewable source	368,788	4,938,739	3,196,318	7,753,501
Natural gas (direct energy) - renewable source	0	0	0	0
Fuel oil (direct energy)	0	0	0	0
Wood (direct energy)	0	0	0	0
Total indirect energy (in kWhfe)	43,106,385	34,635,213	57,993,124	50,586,328
Electricity (indirect energy) - non-renewable source	35,280,082	26,792,838	37,299,051	29,844,983
Electricity (indirect energy) - renewable source	7,937,149	7,842,375	18,056,698	18,315,645
Renewable energy production	110,847	128,369	127,459	167,417
of which solar	110,847	128,369	127,459	167,417
District heating and cooling (indirect energy)	0	0	2,764,834	2,425,699
Total energy consumption (in kWhfe)	43,475,173	39,573,952	61,189,441	58,339,828
Total energy (in GJ)	156,511	142,466	220,282	210,023
Total energy consumption (in kWhpe)	82,283,263	69,046,075	102,218,398	91,169,310
Estimated consumption for vacant space (in kWhpe)	0	0	0	0
Estimated consumption on occupied areas without information (kWhfe) multi-tenant private areas				Reintegrated into the calculation
Estimated consumption in occupied areas for which data is not available (in kWhpe)	22,036,172	20,091,707	19,040,611	16,766,474
Total measured and extrapolated energy consumption (in kWhpe)	104,319,435	89,137,782	121,259,009	107,935,784

	Total consumption (Abs) - "Operational control" scope				Like-for-like (LfL) - "Operational control" scope
		2022	2023			2022
Coverage of the reporting scope by surface area (in m ² )	EPRA BPRs	133,308	135,916		EPRA BPRs	135,916
Reporting scope coverage by surface area (in %)		100%	100%			100%
Reporting scope in number of applicable properties		11/11	11/11			11/11
Proportion of estimated data		0%	0%			0%
Paid by owner				Change
Total Electricity		9,897,258	10,295,408	4.0%		9,953,720
of which on a tenant submeter		0	0			0
of which shared services	Elec-Abs	9,897,258	10,295,408	4.0%	Elec-LfL	9,953,720
Total district heating and cooling (in kWh)		2,764,834	2,425,699	-12.3%		2,824,363
of which on a tenant submeter		0	0			0
of which shared services	DH&C-Abs	2,764,834	2,425,699	-12.3%	DH&C-LfL	2,824,363
Total Gas-Fuel oil-Wood (in kWh)		2,827,530	2,814,761	-0.5%		3,186,998
of which on a tenant submeter		0	0			0
of which shared services	Fuel-Abs	2,827,530	2,814,761	-0.5%	Fuels-LfL	3,186,998
INTENSITY (in kWhfe/m ² /year)						117.5
INTENSITY (kWhpe/m ² /year)

	Like-for-like (LfL) - "Operational control" scope		Like-for-like (LfL) scope - Total portfolio
	2023		2022	2023
Coverage of the reporting scope by surface area (in m ² )	135,916		307,687
Reporting scope coverage by surface area (in %)	100%		81%
Reporting scope in number of applicable properties	11/11		23/33
Proportion of estimated data	0%		0%
Paid by owner		Change			Change
Total Electricity	10,295,408	3.4%	37,435,503	37,148,451	-0.8%
of which on a tenant submeter	0		0	0
of which shared services	10,295,408	3.4%	37,435,503	37,148,451	-0.8%
Total district heating and cooling (in kWh)	2,425,699	-14.1%	2,824,363	2,425,699	-14.1%
of which on a tenant submeter	0		0	0
of which shared services	2,425,699	-14.1%	2,824,363	2,425,699	-14.1%
Total Gas-Fuel oil-Wood (in kWh)	2,814,761	-11.7%	4,744,180	6,283,111	32.4%
of which on a tenant submeter	0		0	0
of which shared services	2,814,761	-11.7%	4,744,180	6,283,111	32.4%
INTENSITY (in kWhfe/m ² /year)	114.3	-2.7%	146.3	149.0	1.9%
INTENSITY (kWhpe/m ² /year)			224.1	223.4	-0.3%

Carbon - Total GHG emissions and carbon intensity ratio for fully-owned assets (operational control scope)

			Multi-let buildings
			"Operational control" scope		Scope of "private areas"
	GHG Protocol:		Scopes 1 & 2		Scope 3 (excluding upstream)
Total carbon emissions (Abs)	GRI standards	EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )			133,308	135,916	64,190	50,976
Reporting scope coverage by surface area (in %)			100%	100%	NC	NC
Number of applicable properties			11/11	11/11	10/11	7/11
Proportion of estimated data			0%	0%	0%	0%
Carbon intensity (in kgCO ₂ e/m ² /year)	305-4	GHG-Int	7.3	5.5	8.9	7.7
Total emissions (in tCO ₂ e)			968	751	568	394
of which direct emissions (in tCO ₂ e)	305-1	GHG -Dir-Abs	523	521	0	0
of which indirect emissions (in tCO ₂ e)	305-2	GHG -Indir-Abs	445	230	568	394
Estimated emissions on vacant areas (in tCO ₂ e)			0	0	0	0
Estimated emissions on occupied areas without information (tCO2e) - Multi-tenant private areas						527
Estimated emissions for occupied areas where no data is available (in tCO ₂ e)			0	0	NC	NC
Total extrapolated carbon emissions (in tCO ₂ e)			968	751	NC	NC

	Single-let buildings		Portfolio total
	Scope 3 (excluding upstream)		Scopes 1, 2 and 3 (excluding upstream)
Total carbon emissions (Abs)	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )	304,555	233,419	437,863	369,335
Reporting scope coverage by surface area (in %)	79%	77%	84%	84%
Number of applicable properties	21/33	19/28	32/44	30/39
Proportion of estimated data	0%	0%	0%	3%
Carbon intensity (in kgCO ₂ e/m ² /year)	32.8	37.9	26.3	28.5 ^*
Total emissions (in tCO ₂ e)	9,996	8,858	11,532	10,529
of which direct emissions (in tCO ₂ e)	68	914	591	1,434
of which indirect emissions (in tCO ₂ e)	9,928	7,944	10,941	9,095
Estimated emissions on vacant areas (in tCO ₂ e)	0	0	0	0
Estimated emissions on occupied areas without information (tCO2e) - Multi-tenant private areas				Reintegrated into the calculation
Estimated emissions for occupied areas where no data is available (in tCO ₂ e)	2,677	2,578	2,148	1,936
Total extrapolated carbon emissions (in tCO ₂ e)	12,673	11,435	13,681	12,466

^* This data takes into account the low level of emissions associated with green electricity contracts. With coefficients that do not take this into account, the total emissions of the assets would amount to 15,907 tCO ₂ e, with a carbon intensity of 43.1 kgCO ₂ e/m ² /year.

			Total emissions (Abs) -"Operational control" scope
	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			133,308	135,916
Reporting scope coverage by surface area (in %)			100%	100%
Reporting scope in number of applicable properties			11/11	11/11
Proportion of estimated data			0%	0%	Change
Carbon intensity (in kgCO ₂ e/m ² / year)	305-4	GHG-Int	7.3	5.5	-24.0%
GHG Protocol						EPRA BPRs
Scope 1 - Total direct emissions (in tCO ₂ e)	305-1	GHG -Dir-Abs	523	521	-0.5%	GHG-Dir-LfL
Scope 2 - Total indirect emissions (in tCO ₂ e)	305-2	GHG -Indir-Abs	445	230	-48.3%	GHG -Indir-LfL
Scope 3 - Other emissions (in tCO ₂ e)		GHG -Indir-Abs	0	0		GHG-Indir -LfL
Total emissions (in tCO ₂ e/year)			968	751
CHANGE IN CARBON EMISSIONS			-24%

	Emissions on a like-for-like basis (LfL) - "Operational control" scope			Like-for-like (LfL) scope -TOTAL PORTFOLIO
	2022	2023		2022	2023
Coverage of the reporting scope by surface area (in m ² )	135,916			307,687
Reporting scope coverage by surface area (in %)	100%			81%
Reporting scope in number of applicable properties	11/11			23/33
Proportion of estimated data	0%		Change	0%		Change
Carbon intensity (in kgCO ₂ e/m ² / year)	7.5	5.5	-26.1%	25.3	24.7	-2.3%
GHG Protocol
Scope 1 - Total direct emissions (in tCO ₂ e)	590	521	-11.7%	878	1162	32.4%
Scope 2 - Total indirect emissions (in tCO ₂ e)	426	230	-46.0%	6,906	6,440	-6.7%
Scope 3 - Other emissions (in tCO ₂ e)	0	0		0	0
Total emissions (in tCO ₂ e/year)	1,016	751		7,783	7,603
CHANGE IN CARBON EMISSIONS	-26.1%			-2.3%

The like-for-like decrease in the operating scope is partly due to the adoption of the district heating network operator's emission factors (vs an average last year) and the decrease in consumption for the assets concerned (-12%).

Water - Total water consumption and water intensity ratio for fully owned buildings (operational control scope)

Water used in the portfolio comes from a single source: municipal water supplies. According to the WRI Aqueduct map ⁽¹⁾ , 0% of the directly managed portfolio is located in a region with a high or very high risk of baseline water stress (SASB-IF-RE140a), 37% of the total portfolio is located in a region with a very high risk of baseline water stress, i.e. 10% of water consumption. Water consumption figures below- are based on invoices. Most these are in turn based on estimates by suppliers and subsequently adjusted (which may take anywhere from one to three years), which may lead to significant changes (particularly for small scopes as for single-tenant lets below).

			Multi-let buildings
	GRI standards		"Operational control" scope		Scope of "private areas"
Total water consumption (Abs)		EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)			133,308	127,792	Not applicable
Reporting scope coverage by surface area (in %)			100%	94%
Number of applicable properties			11/11	10/11
Water intensity (in m ³ /m ² /year)	CRE2	Water-Int	0.88	0.72
Total water consumption (in m ³ )	303-1	Water-Abs	116,871	92,207
Estimated water consumption in vacant space (in m ³ )			0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )			0	5,862
Total extrapolated water consumption (in m ³ )			116,871	98,069
Water consumption - Like-for-like (LfL)
Coverage of the reporting scope (in m ² SHON)			127,792		Not applicable
Reporting scope coverage by surface area (in %)			94%
Reporting scope in number of applicable properties			10/11
Proportion of estimated data			0%
Water intensity (in m ³ /m ² SHON/year)			0.79	0.72
Like-for-like water consumption (in m ³ )	303-1	Water-LfL	100,513	92,207
CHANGE IN WATER CONSUMPTION INTENSITY			-8.3%

	Single-tenant		Portfolio total
Total water consumption (Abs)	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² SHON)	64,322	163,683	197,630	291,475
Reporting scope coverage by surface area (in %)	17%	54%	38%	67%
Number of applicable properties	9/33	12/28	20/44	22/39
Water intensity (in m ³ /m ² /year)	1.12	0.39	0.96	0.54
Total water consumption (in m ³ )	72,325	64,551	189,196	156,757
Estimated water consumption in vacant space (in m ³ )	0	0	0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )	361,834	54,288	308,062	78,403
Total extrapolated water consumption (in m ³ )	434,159	118,838	497,258	235,161
Water consumption - Like-for-like (LfL)
Coverage of the reporting scope (in m ² SHON)	39,283		167,075
Reporting scope coverage by surface area (in %)	16%		44%
Reporting scope in number of applicable properties	5/22		15/33
Proportion of estimated data	0%		0%
Water intensity (in m ³ /m ² SHON/year)	1.06	0.75	0.85	0.79
Like-for-like water consumption (in m ³ )	41,484	39,283	141,997	131,490
CHANGE IN WATER CONSUMPTION INTENSITY	-29.1%		-7.4%

⁽¹⁾ Beta Aqueduct 2021 - Baseline Water Stress country ranking - https://wri.org/applications/aqueduct/country-rankings/

Waste - Total mass of waste in tonnes by type and disposal method

The change in the single-tenant scope is mainly due to incorrect data on one asset the previous year.

			Multi-let buildings
			"Operational control" scope		Scope of "private areas"
			2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )			107,610	71,004
Coverage of scope in surface area (in %)			81%	52%
Number of applicable properties			10/11	9/11
Proportion of estimated data			100%	100%
Total waste (in tonnes)	306-2	Waste -Abs	2,007	1,125
Total hazardous waste (in tonnes)			0	0
of which recycled, re-used or composted waste	306-2	Waste -Abs	915	472
in %			46%	42%
of which incinerated (including with energy recovery)	306-2	Waste -Abs	NC	NC
of which landfill	306-2	Waste -Abs	NC	NC
of which other disposal methods	306-2	Waste -Abs	NC	NC
of which other disposal methods	306-2	Waste -Abs	NC	NC
Rate of selective collection			100%	100%
Total extrapolated production of waste (in tonnes)			2,487	2,154
Waste production - Like-for-like (LfL)
Coverage of the reporting scope by surface area (in m ² )			71,004
Coverage of scope in surface area (in %)			52%
Number of applicable properties			9/11
Proportion of estimated data			100%
Rate of selective collection			100%	100%
Total waste (in tonnes)	306-2	Waste-LfL	951	1,125
Total hazardous waste (in tonnes)			0	0
of which recycled, re-used or composted waste			392	472
in %			41%	42%
of which incinerated (including with energy recovery)			NC	NC
of which landfill			NC	NC
of which other disposal methods			NC	NC
CHANGE IN TOTAL WASTE PRODUCTION			18.3%

	Multi-let buildings
	Single-let buildings		Portfolio total
	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )	21,599	25,899	129,209	96,903
Coverage of scope in surface area (in %)	6%	9%	25%	22%
Number of applicable properties	3/33	4/28	13/44	13/39
Proportion of estimated data	0%	100%	100%	100%
Total waste (in tonnes)	462	950	2,469	2,075
Total hazardous waste (in tonnes)	0	0	0	0
of which recycled, re-used or composted waste	160	377	1,075	849
in %	35%	40%	44%	41%
of which incinerated (including with energy recovery)	NC	NC	NC	NC
of which landfill	NC	NC	NC	NC
of which other disposal methods	NC	NC	NC	NC
of which other disposal methods	NC	NC	NC	NC
Rate of selective collection	100%	100%	100%	100%
Total extrapolated production of waste (in tonnes)	8,256	11,056	9,926	9,364
Waste production - Like-for-like (LfL)
Coverage of the reporting scope by surface area (in m ² )	21,599		92,603
Coverage of scope in surface area (in %)	9%		24.3%
Number of applicable properties	3/22		12/33
Proportion of estimated data	100%		100%
Rate of selective collection	100%	100%	0%	0%
Total waste (in tonnes)	462	791	1,413	1,916
Total hazardous waste (in tonnes)	0	0	0	0
of which recycled, re-used or composted waste	160	296	552	768
in %	43%	37%	39%	40%
of which incinerated (including with energy recovery)	NC	NC	NC	NC
of which landfill	NC	NC	NC	NC
of which other disposal methods	NC	NC	NC	NC
CHANGE IN TOTAL WASTE PRODUCTION	71.2%		35.6%

3.7.1.4 Germany Offices

Certifications and labels - (Cert-tot) (3.3.1.3)

61.9% of the portfolio is subject to certification at the end of 2023, an operation certification programme has been launched for the next two years.

Energy - Direct and indirect energy consumption by source and energy intensity ratio of assets

Consumption data is based on invoices obtained from the property management company or energy suppliers.

			Multi-let buildings
			"Operational control" scope		Scope of "private areas"
Total energy consumption (Abs)	GRI standards	EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )			222,210	234,136	88,702	88,702
Reporting scope coverage by surface area (in %)			96%	100%	42%	42%
Number of applicable properties			11/12	12/12	3/12	3/12
Proportion of estimated data (only for tenant areas)			0	0%	0%	0%
Intensity (in KWhfe/m ² /year)	CRE1	Energy-Int	122.5	121.8	47.1	49.3
Intensity (in kWhpe/m ² /year)			127.8	122.0	47.1	49.3
Total direct energy (in kWhfe)	302-1	Fuel-Abs	8,116,028	10,691,719	-	-
Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	0	0	-	-
Natural gas (direct energy) - renewable source			8,116,028	10,691,719	-	-
Fuel oil (direct energy)	302-1	Fuel-Abs	0	0	-	-
Wood (direct energy)	302-1	Fuel-Abs	0	0	-	-
Total indirect energy (in kWhfe)	302-1	Elec-Abs	19,098,591	17,822,279	4,175,197	4,376,446
Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	0	75,494	0	0
Electricity (indirect energy) - renewable source			4,297,156	7,397,808	4,175,197	4,376,446
Renewable energy production	302-1	Elec-Abs	0	0	-	-
of which solar			0	0	-	-
District heating and cooling (indirect energy)	302-1	DH&C-Abs	14,801,435	10,348,977	-	-
Total energy consumption (in kWhfe)			27,214,618	28,513,997	4,175,197	4,376,446
Total energy (in GJ)			97,973	102,650	15,031	15,755
Total energy consumption (in kWhpe)			28,398,733	28,567,598	4,175,197	4,376,446
Estimated consumption for vacant space (in kWhpe)			0	0
Estimated consumption in occupied areas for which data is not available (in kWhpe)			1,279,230	0
Estimated consumption on occupied areas without information (kWhfe) -Multi-tenant private areas (included in the total intensity calculation)					5,341,834	6,859,041
Total measured and extrapolated energy consumption (in kWhpe)			29,677,964	28,567,598	15,393,049	16,105,405

	Portfolio total
Total energy consumption (Abs)	2022	2022 revised ⁽¹⁾	2023
Coverage of the reporting scope by surface area (in m ² )	222,210	222,210	234,136
Reporting scope coverage by surface area (in %)	96%	96%	100%
Number of applicable properties	11/12	11/12	12/12
Proportion of estimated data (only for tenant areas)	0%	15%	17%
Intensity (in KWhfe/m ² /year)	141.3	165.3	169.8
Intensity (in kWhpe/m ² /year)	146.6	197.1	190.8
Total direct energy (in kWhfe)	8,116,028	8,116,028	10,691,719
Natural gas (direct energy) - non-renewable source	0	0	0
Natural gas (direct energy) - renewable source	8,116,028	8,116,028	10,691,719
Fuel oil (direct energy)	0	0	0
Wood (direct energy)	0	0	0
Total indirect energy (in kWhfe)	23,273,787	28,615,622	29,057,765
Electricity (indirect energy) - non-renewable source	0	5,341,834	6,934,535
Electricity (indirect energy) - renewable source	8,472,352	8,472,352	11,774,254
Renewable energy production	0	0	0
of which solar	0	0	0
District heating and cooling (indirect energy)	14,801,435	14,801,435	10,348,977
Total energy consumption (in kWhfe)	31,389,815	36,731,649	39,749,484
Total energy (in GJ)	113,003	132,234	143,098
Total energy consumption (in kWhpe)	32,573,930	43,791,782	44,673,003
Estimated consumption for vacant space (in kWhpe)	0	0	0
Estimated consumption in occupied areas for which data is not available (in kWhpe)	1,467,304	1,972,616	0
Estimated consumption on occupied areas without information (kWhfe) -Multi-tenant private areas (included in the total intensity calculation)		Reintegrated into the calculation	Reintegrated into the calculation
Total measured and extrapolated energy consumption (in kWhpe)	34,041,233	45,764,397	44,673,003

⁽¹⁾ An estimate of the tenant areas was included to give a complete picture of the energy performance of multi-tenant buildings for which we were unable to collect the actual information. This estimate is based on actual data for other assets in the portfolio.

It should be noted that the total intensity this year includes an estimate for the tenant areas that could not be collected. Errors in the data reported in 2022 led to a decrease in urban heating consumption and an increase in gas consumption, with little impact on the overall trend.

	Like-for-like (LfL) - "Operational control" scope				Like-for-like (LfL) scope - Total portfolio
		2022	2023		2022	2023
Coverage of the reporting scope by surface area (in m ² )	EPRA BPRs	224,126			224,126
Reporting scope coverage by surface area (in %)		96%			96%
Reporting scope in number of applicable properties		11/12			11/12
Proportion of estimated data		0%			0%
Paid by owner				Change
Total Electricity	Elec-LfL	4,403,062	7,452,091	69.2%	4,403,062	7,452,091
of which on a tenant submeter		0	0		0	0
of which shared services		4,403,062	7,452,091	69.2%	4,403,062	7,452,091
Total district heating and cooling (in kWh)	DH&C-LfL	15,079,652	10,051,761	-33.3%	15,079,652	10,051,761
of which on a tenant submeter		0	0		0	0
of which shared services		15,079,652	10,051,761	-33.3%	15,079,652	10,051,761
Total Gas-Fuel oil-Wood (in kWh)	Fuels-LfL	8,319,404	10,691,719	28.5%	8,319,404	10,691,719
of which on a tenant submeter		0	0		0	0
of which shared services		8,319,404	10,691,719	28.5%	8,319,404	10,691,719
INTENSITY (in KWhfe/m ² /year)		124.0	125.8	1.4%	124.0	125.8
INTENSITY (kWhpe/m ² /year)					129.4	126.0

	Like-for-like (LfL) scope - Total portfolio
Coverage of the reporting scope by surface area (in m ² )
Reporting scope coverage by surface area (in %)
Reporting scope in number of applicable properties
Proportion of estimated data
Paid by owner	Change
Total Electricity	69.2%
of which on a tenant submeter
of which shared services	69.2%
Total district heating and cooling (in kWh)	-33.3%
of which on a tenant submeter
of which shared services	-33.3%
Total Gas-Fuel oil-Wood (in kWh)	28.5%
of which on a tenant submeter
of which shared services	28.5%
INTENSITY (in KWhfe/m ² /year)	1.4%
INTENSITY (kWhpe/m ² /year)	-2.6%

Carbon - Total GHG emissions and carbon intensity ratio for fully-owned assets (operational control scope)

			Multi-let buildings
			"Operational control" scope		Scope of "private areas"
	GHG Protocol:		Scopes 1 & 2		Scope 3 (excluding upstream)
Total carbon emissions (Abs)	GRI standards	EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )			222,210	234,136	88,702	88,702
Reporting scope coverage by surface area (in %)			96%	100%	42%	42%
Number of applicable properties			11/12	12/12	3/12	3/12
Proportion of estimated data			0%	0%	0%	0%
Carbon intensity (in kgCO ₂ e/m ² /year)	305-4	GHG-Int	8.9	5.9	0.0	0.0
Total emissions (in tCO ₂ e)			1,976	1,393	0	0
of which direct emissions (tCO2e) - Scope 1	305-1	GHG -Dir-Abs	0	0	0	0
of which indirect emissions (tCO2e) - Scope 2	305-2	GHG -Indir-Abs	1,976	1,393	0	0
of which indirect emissions (tCO2e) - Scope 3			0	0	0	0
Estimated emissions on vacant areas (in tCO ₂ e)			0	0	0	0
Estimated emissions for occupied areas where no data is available (in tCO ₂ e)			89	0	2,179	2,977
Total extrapolated carbon emissions (in tCO ₂ e)			2,065	1,393	0	0

	Portfolio total
		Scopes 1, 2 and 3 (excluding upstream)
Total carbon emissions (Abs)	2022	2022 revised ⁽¹⁾	2023
Coverage of the reporting scope by surface area (in m ² )	222,210	222,210	234,136
Reporting scope coverage by surface area (in %)	96%	96%	100%
Number of applicable properties	11/12	11/12	12/12
Proportion of estimated data	0%	15%	17%
Carbon intensity (in kgCO ₂ e/m ² /year)	8.9	18.7	18.7 ^*
Total emissions (in tCO ₂ e)	1,976	4,156	4,369
of which direct emissions (tCO2e) - Scope 1	0	0	0
of which indirect emissions (tCO2e) - Scope 2	1,976	1,976	1,393
of which indirect emissions (tCO2e) - Scope 3	0	2,176	2,977
Estimated emissions on vacant areas (in tCO ₂ e)	0	0	0
Estimated emissions for occupied areas where no data is available (in tCO ₂ e)	89	187	0
Total extrapolated carbon emissions (in tCO ₂ e)	2,065	4,343	4,369

^* This data takes into account the low level of emissions associated with green electricity contracts. With coefficients that do not take this into account, the total emissions of the assets would amount to 9,479 tCO ₂ e, with a carbon intensity of 40.5 kgCO ₂ e/m ² /year.

⁽¹⁾ An estimate of the tenant areas was included to give a complete picture of the energy performance of multi-tenant buildings for which we were unable to collect the actual information.

The decrease on like-for-like scope is mainly due to the decrease in urban heating consumption (-33%).

			Emissions on a like-for-like basis (LfL) - "Operational control" scope
	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			224,126
Reporting scope coverage by surface area (in %)			96%
Reporting scope in number of applicable properties			11/12
Proportion of estimated data			0%		Change
Carbon intensity (in kgCO ₂ e/m ² /year)	305-4	GHG-Int	9.0	6.1	-31.7%
GHG Protocol
Scope 1 - Total direct emissions (in tCO ₂ e)	305-1	GHG-Dir-Abs	0	0	-
Scope 2 - Total indirect emissions (in tCO ₂ e)	305-2	GHG-Indir-Abs	2,013	1,376	-31.7%
Scope 3 - Other emissions (in tCO ₂ e)		GHG-Indir-Abs	0	0
Total emissions (in tCO ₂ e/year)			2,013	1,376
CHANGE IN CARBON EMISSIONS			-31.7%

Water - Total water consumption and water intensity ratio for fully owned buildings (operational control scope)

Water used in the portfolio comes from a single source: municipal water supplies. According to the WRI Aqueduct map 47.6% and 0%, respectively, of the water scope (in surface area) is located in a region with a high or very high risk of baseline water stress (SASB IF-RE140a), i.e. 61.6% of water consumption. Data is based from invoices and some of these are estimated and subsequently adjusted.

			Multi-let buildings
	GRI standards		"Operational control" scope		Scope of "private areas"
Total water consumption (Abs)		EPRA BPRs	2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )			232,219	170,663	Not applicable
Reporting scope coverage by surface area (in %)			100%	73%
Number of applicable properties			12/12	10/12
Water intensity (in m ³ /m ² /year)	CRE2	Water-Int	0.19	0.21
Total water consumption (in m ³ )	303-1	Water-Abs	45,007	35,260
Estimated water consumption in vacant space (in _m 3 ₎			0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )			0	13,114
Total extrapolated water consumption (in m ³ )			45,007	48,374
Water consumption - Like-for-like (LfL)
Coverage of the reporting scope (in m ² )			170,663
Reporting scope coverage by surface area (in %)			73%
Reporting scope in number of applicable properties			10/12
Proportion of estimated data			0%
Water intensity (in m ³ /m ² /year)			0.20	0.21
Like-for-like water consumption (in m ³ )	303-1	Water-LfL	33,339	35,260
Change in water consumption intensity			5.8%

	Portfolio total
Total water consumption (Abs)	2022	2023
Coverage of the reporting scope by surface area (in m ² )	232,219	170,663
Reporting scope coverage by surface area (in %)	100%	73%
Number of applicable properties	12/12	10/12
Water intensity (in m ³ /m ² /year)	0.19	0.21
Total water consumption (in m ³ )	45,007	35,260
Estimated water consumption in vacant space (in _m 3 ₎	0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )	0	13,114
Total extrapolated water consumption (in m ³ )	45,007	48,374
Water consumption - Like-for-like (LfL)
Coverage of the reporting scope (in m ² )	170,663
Reporting scope coverage by surface area (in %)	73%
Reporting scope in number of applicable properties	10/12
Proportion of estimated data	0%
Water intensity (in m ³ /m ² /year)	0.20	0.21
Like-for-like water consumption (in m ³ )	33,339	35,260
Change in water consumption intensity	5.8%

Waste - Total mass of waste in tonnes by type and disposal method

Waste production between 2022 and 2023 cannot be compared due to a unity issue in 2022. On a constant methodology basis, the decrease would be 26%.

			Multi-let buildings
			"Operational control" scope		Scope of "private areas"
			2022	2023	2022	2023
Coverage of the reporting scope by surface area (in m ² )			184,084	186,000	Not applicable
Coverage of scope in surface area (in %)			79%	79%
Number of applicable properties			11/12	11/12
Proportion of estimated data			100%	100%
Total waste (in tonnes)	306-2	Waste-Abs	1,864	423
Total hazardous waste (in tonnes)			0	0
of which recycled, re-used or composted waste	306-2	Waste-Abs	NC	NC
in %			NC	NC
of which incinerated (including with energy recovery)	306-2	Waste-Abs	NC	NC
of which landfill	306-2	Waste-Abs	NC	NC
of which other disposal methods	306-2	Waste-Abs	NC	NC
of which other disposal methods	306-2	Waste-Abs	NC	NC
Rate of selective collection			100%	100%
Total extrapolated production of waste (in tonnes)			2,352	533
Waste production - Like-for-like (LfL)
Coverage of the reporting scope by surface area (in m ² )			186,000
Coverage of scope in surface area (in %)			79%
Number of applicable properties			11/12
Proportion of estimated data			100%
Rate of selective collection			100%	100%
Total waste (in tonnes)	306-2	Waste-LfL	1,864	423
Total hazardous waste (in tonnes)			0	0
of which recycled, re-used or composted waste			0	0
in %			0%	0%
of which incinerated (including with energy recovery)			NC	NC
of which landfill			NC	NC
of which other disposal methods			NC	NC
CHANGE IN TOTAL WASTE PRODUCTION			-77.3%

	Portfolio total
	2022	2023
Coverage of the reporting scope by surface area (in m ² )	184,084	186,000
Coverage of scope in surface area (in %)	79%	79%
Number of applicable properties	11/12	11/12
Proportion of estimated data	100%	100%
Total waste (in tonnes)	1,864	423
Total hazardous waste (in tonnes)	0	0
of which recycled, re-used or composted waste	NC	NC
in %	NC	NC
of which incinerated (including with energy recovery)	NC	NC
of which landfill	NC	NC
of which other disposal methods	NC	NC
of which other disposal methods	NC	NC
Rate of selective collection	100%	100%
Total extrapolated production of waste (in tonnes)	2,352	533
Waste production - Like-for-like (LfL)
Coverage of the reporting scope by surface area (in m ² )	186,000
Coverage of scope in surface area (in %)	79%
Number of applicable properties	11/12
Proportion of estimated data	100%
Rate of selective collection	100%	100%
Total waste (in tonnes)	1,864	423
Total hazardous waste (in tonnes)	0	0
of which recycled, re-used or composted waste	0	0
in %	0%	0%
of which incinerated (including with energy recovery)	NC	NC
of which landfill	NC	NC
of which other disposal methods	NC	NC
CHANGE IN TOTAL WASTE PRODUCTION	-77.3%

3.7.1.5 German Residential

Previously carried out on a panel of 200 buildings, the reporting was extended to the entire portfolio (95% of the portfolio) by using a platform centralising all invoices and using estimates by EPC for 19% of the assets. A significant decrease was observed following this change in methodology, so the main impact is based on the areas previously used following a review of the areas. In addition, in line with German regulations, the primary energy coefficients used are those provided by the network operators using a calculation method that makes it possible to value the use of renewable energies (resulting in an advantageous coefficient, compared to 1 kWhfe = 1kWhpe previously). Changes on a like-for-like basis are therefore not presented in view of these changes; they will be included in the reporting from next year.

Certifications and labels - (Cert-Tot) (3.3.1.3)

100% of the residential portfolio held by Covivio in Germany is HQETM Operation certified, representing a total of more than 40,000 housing units, located in 17 cities across Germany.

Energy - Direct and indirect energy consumption by primary energy source and energy intensity ratio for buildings in use

The data relates to the owner scope and is based on invoices with no estimates. Property owners cannot ask for the tenants' energy consumption data. All of the assets have submeters for tenant areas (SASB IF-RE 410a.2), the energy consumption of which is not reported here.

	GRI standards	EPRA BPRs	Published 2022 panel	Revised 2022 panel	2023
Coverage of reporting scope by surface area (in m ² Nütz)			112,756	141,766	2,756,716
Reporting scope coverage by surface area (in %)			84%	84% of the panel	95%
Number of applicable properties			164/201	164/201	4,807/4,936
Proportion of estimated data			0%	0%	19%
Intensity (in KWhfe/m ² Nütz/year)	CRE1	Energy-Int	185	148.1	147.6
Intensity (in KWhfe/m ² Nütz/year)			195	115.9	120.9
Total direct energy (in kWhfe)	302-1	Fuel-Abs	9,177,410	9,237,622	220,471,680
Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	9,052,032	9,111,422	210,718,570
Natural gas (direct energy) - renewable source	302-1		0	0	0
Fuel oil (direct energy)	302-1	Fuel-Abs	125,377	126,200	8,871,286
Wood (direct energy)	302-1	Fuel-Abs	0	0	881,823
Total indirect energy (in kWhfe)	302-1	Elec-Abs	11,684,974	11,761,639	186,426,204
Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	208,031	209,396	9,532,522
Electricity (indirect energy) - renewable source			0	0	0
Renewable energy production	302-1	Elec-Abs	29,574	29,768	909,145
of which solar			29,574	29,768	909,145
District heating and cooling (indirect energy)	302-1	DH&C-Abs	11,506,517	11,582,011	176,893,683
Total energy consumption (in kWhfe)			20,862,384	20,999,261	406,897,884
Total energy (in GJ)			75,105	75,597	1,464,832
Total energy consumption (in kWhpe)			22,011,739	16,424,110	333,403,617
Estimated consumption for vacant space (in kWhpe)			0	0	0
Estimated consumption in occupied areas for which data is not available (in kWhpe)			4,237,587	2,651,443	16,240,893
Total measured and extrapolated energy consumption (in kWhpe)			26,249,326	19,585,996	350,476,154

^* After review of surface areas and with a constant methodology concerning emission factors. This column is added for information purposes to reflect the impact of this new methodology.

Carbon - Total direct or indirect GHG emissions and greenhouse gas emissions from buildings

The emissions presented in this table represent Scope 3 emissions for Covivio in accordance with the GHG Protocol.

			Total Emissions (Abs)
	GRI standards	EPRA BPRs	2022 panel	Revised 2022 panel	2023
Coverage of reporting scope by surface area (in m ² Nütz)			112,756	141,766	2,756,716
Reporting scope coverage by surface area (in %)			84%	84% of the panel	95%
Reporting scope in number of applicable properties			164/201	164/201	4,807/4,936
Proportion of estimated data			0%	0%	19%
Carbon intensity (in kgCO ₂ e/m ² Nütz/year) upstream included	305-4	GHG-Int		28.0	29.7
Carbon intensity (in kgCO ₂ e/m ² Nütz/year) upstream excluded	305-4	GHG-Int	28.8	24.8	26.3
GHG Protocol
Scope 1 - Total direct emissions (in tCO ₂ e)	305-1	GHG-Dir-Abs	1,708	1,708	45,012
Scope 2 - Total indirect emissions (in tCO ₂ e)	305-2	GHG-Indir-Abs	1,542	1,542	27,575
Scope 3 - Other emissions (in tCO ₂ e)		GHG-Indir-Abs	0	454	9,368
Total emissions (in tCO ₂ e)			3,250	3,705	81,955
Emissions extrapolated from occupied areas without information					4,197
Total emissions including extrapolated emissions					86,152

^* After review of surface areas and with a constant methodology concerning emission factors. This column is added for information purposes to reflect the impact of this new methodology.

Water - Total water consumption and water intensity ratio for buildings in use

Water used in the portfolio comes from a single source: municipal water supplies. According to the WRI Aqueduct map ⁽¹⁾ , 48.9% of the water scope (i.e. 49.8% of water consumption) in surface area is located in a region with a high risk of baseline water stress (SASB IF-RE140a). Covivio does not, however, extract water directly from the water table. The water consumption is exclusively linked to tenant usage and maintenance of the shared and green spaces. . The water consumption presented below is taken from invoices, the majority of which are based on estimates made by water suppliers resulting in adjustments (which can range from one to three years for the residential sector).

Total water consumption (Abs)	GRI standards	EPRA BPRs	2022	2023
Coverage of reporting scope by surface area (in m ² Nütz)			127,322	130,097
Reporting scope coverage by surface area (in %)			95%	91%
Number of applicable properties			191/201	188/203
Water intensity (in m ³ /m ² Nütz/year)	CRE2	Water-Int	1.23	1.12
Total water consumption (in m ³ )	303-1	Water-Abs	156,880	145,389
Estimated water consumption in vacant space (in m ³ )			0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )			8,798	14,099
Total extrapolated water consumption on the panel (in m ³ )			165,678	159,488
Total extrapolated water consumption on the total portfolio (in m ³ )			3,200,646	3,238,629
Water consumption - Like-for-like (LfL)
Coverage of reporting scope by surface area (in m ² Nütz)			125,953
Reporting scope coverage by surface area (in %)			89%
Reporting scope in number of applicable properties			183/201
Proportion of estimated data			0%
Water intensity (in m ³ /m ² Nütz/year)			1.19	1.13
Like-for-like water consumption (in m ³ )	303-1	Water-LfL	149,790	142,276
CHANGE IN WATER CONSUMPTION INTENSITY			-5%

⁽¹⁾ Beta Aqueduct 2021 - Baseline Water Stress country ranking - https://wri.org/applications/aqueduct/country-rankings/.

Waste - Total mass of waste in tonnes by type and disposal method

In order to include recyclable waste in the calculation, an estimate was made in 2023 leading to an increase in waste production compared to the data published in 2022.

Total waste production (Abs)	GRI standards	EPRA BPRs	2022	2023
Coverage of reporting scope by surface area (in m ² Nütz)			134,463	138,282
Reporting scope coverage by surface area (in %)			100%	97%
Number of applicable properties			201/201	199/203
Proportion of estimated data			100%	100%
Total non-dangerous waste (in m ³ )	306-2	Waste-Abs	2,503	2,994
Total dangerous waste (in m ³ )	306-2	Waste-Abs	0	0
of which recycled, re-used or composted waste	306-2	Waste-Abs	127	624
in %			5,1%	21%
of which incinerated (including with energy recovery)	306-2	Waste-Abs	NC	NC
of which landfill	306-2	Waste-Abs	NC	NC
of which other disposal methods	306-2	Waste-Abs	NC	NC
Rate of selective collection			100%	100%
Total extrapolated production of waste (in tonnes)			2,503	3,090
Total extrapolated production of waste for full portfolio			53,941	62,738
Waste production - Like-for-like (LfL)
Coverage of reporting scope by surface area (in m ² Nütz)			136,451
Reporting scope coverage by surface area (in %)			97%
Number of applicable properties			197/201
Proportion of estimated data			100%
Rate of selective collection			100%	100%
Total non-dangerous waste (in m ³ )	306-2	Waste-LfL	2,417	2,959
Total dangerous waste (in m ³ )	306-2	Waste-LfL	0	0
of which recycled, re-used or composted waste			123.7	616
in %			5%	21%
CHANGE IN TOTAL WASTE PRODUCTION			22.4%

3.7.1.6 Hotels Europe

Covivio's Hotels activity portfolio is made up entirely of single-let buildings. The tenants are responsible for the operation and management of energy, water and waste for each asset. As such, Covivio does not have "operational control" of the assets and is thus exempted from environmental reporting in light of the EPRA recommendations.

Nonetheless, Covivio is determined to monitor and reduce the environmental footprint of its portfolio and organises reporting with its tenants, who provide their data on waste production, energy and water consumption each year.

Since 2018, the reporting scope covers not only the assets held in France but also hotels held by Covivio Hotels in the rest of Europe (including Hotel Operating properties). The environmental reporting scope is based on Covivio Hotels' consolidated financial reporting scope. Assets under development, under promise, or acquired less than a year ago at the end of December 2023 are excluded from this scope. Reporting therefore covers 308 assets out of the 312 comprising the financial scope (i.e. 1,837,000 m ² ).

Certifications and labels - (Cert-Tot) (3.3.1.3)

As at 31 December 2023, 91.2% of the reporting scope (in value, Group Share) had a building certification (HQE or BREEAM) and/or an operating certification: BREEAM In-Use or sector-specific labels adapted to their activity, such as Green Key, Planet21, GSTC and Green Globe.

Energy - Direct and indirect energy consumption by primary energy source and energy intensity ratio for buildings in use

The figures presented below correspond to Scope 3 of the GHG protocol, since none of this consumption is managed or paid for by the owner ("outside operational control"). The energy intensity of the hotel portfolio increased this year, mainly due to Covivio's upscale strategy and notably with its entry into 4 or 5 star assets that are equipped with premium restaurants and services.

	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			1,666,246	1,670,447
Reporting scope coverage by surface area (in %)			91%	91.0%
Number of applicable properties			271/302	288/308
Proportion of estimated data			0%	0%
Intensity (in KWhfe/m ² /year)	CRE1	Energy-Int	179	184
Intensity (in KWhfe/m ² /year)			273	277
Total direct energy (in kWhfe)	302-1	Fuel-Abs	93,452,909	94,237,764
Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	89,846,523	90,676,759
Natural gas (direct energy) - renewable source	302-1		1,391,467	1,403,277
Fuel oil (direct energy)	302-1	Fuel-Abs	2,214,919	2,157,729
Wood (direct energy)	302-1	Fuel-Abs	0	0
Total indirect energy (in kWhfe)	302-1	Elec-Abs	204,263,332	212,373,486
Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	125,676,713	131,151,119
Electricity (indirect energy) - renewable source			35,462,816	42,161,780
Renewable energy production	302-1	Elec-Abs	110,644	94,571
of which solar			110,644	94,571
District heating and cooling (indirect energy)	302-1	DH&C-Abs	43,234,446	39,060,587
Total energy consumption (in kWhfe)			297,716,241	306,611,251
Total energy (in GJ)			1,071,778	1,103,801
Total energy consumption (in kWhpe)			454,613,212	462,317,656
Estimated consumption for vacant space (in kWhfe)			0	0
Estimated consumption in occupied areas for which data is not available (in kWhfe)			45,894,107	45,994,477
Total measured and extrapolated energy consumption (in kWhfe)			500,507,319	508,312,133

	Total consumption (Abs)				Like-for-like (LfL)
		2022	2023			2022
Coverage of the reporting scope by surface area (in m ² )	EPRA BPRs	1,666,246	1,670,447		EPRA BPRs	1,504,452
Reporting scope coverage by surface area (in %)		91%	91%			84%
Reporting scope in number of applicable properties		271/302	288/308			251/293
Proportion of estimated data		0%	0%			0%
				Change
Total Electricity (in kWh)	Elec -Abs	161,139,529	173,312,900	7.6%	Elec -LfL	146,713,458
of which on a tenant submeter
of which shared services		161,139,529	173,312,900	7.6%		146,713,458
Total heating and cooling networks (in kWh)	DH&C -Abs	43,234,446	39,060,587	-9.7%	DH&C -LfL	40,301,723
of which on a tenant submeter
of which shared services		43,234,446	39,060,587	-9.7%		40,301,723
Total Gas-Fuel oil-Wood (in kWh)	Fuel -Abs	93,452,909	94,237,764	+0.8%	Fuels -LfL	87,691,331
of which on a tenant submeter
of which shared services		93,452,909	94,237,764	+0.8%		87,691,331
Intensity (in KWhfe/m ² /year)						182.6

	Like-for-like (LfL)
	2023
Coverage of the reporting scope by surface area (in m ² )	1,504,452
Reporting scope coverage by surface area (in %)	84%
Reporting scope in number of applicable properties	251/293
Proportion of estimated data	0%
		Change
Total Electricity (in kWh)	156,700,286	6.8%
of which on a tenant submeter
of which shared services	156,700,286	6.8%
Total heating and cooling networks (in kWh)	38,593,956	-4.2%
of which on a tenant submeter
of which shared services	38,593,956	-4.2%
Total Gas-Fuel oil-Wood (in kWh)	85,842,983	-2.1%
of which on a tenant submeter
of which shared services	85,842,983	-2.1%
Intensity (in KWhfe/m ² /year)	186.9	2.3%

Carbon - Total direct or indirect GHG emissions and greenhouse gas emissions from buildings

The emissions presented in this table represent Scope 3 emissions for Covivio in accordance with the GHG Protocol. The carbon intensity of the hotel portfolio is up sharply this year, as a result of the integration of high-end hotels, consuming more fuel oil and gas than in previous years.

			Total Emissions (Abs)
	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			1,666,246	1,670,447
Reporting scope coverage by surface area (in %)			91%	91%
Reporting scope in number of applicable properties			271/302	288/308
Proportion of estimated data			0%	0%	Change
Carbon intensity (in kgCO ₂ e/m ² /year)	305-4	GHG -Dir-Abs	25.1	24.9	-1.0%
GHG Protocol						EPRA BPRs
Scope 1 - Total direct emissions (in tCO ₂ e)	305-1	GHG -Dir-Abs	16,917	17,463	3.2%	GHG -Dir-LfL
Scope 2 - Total indirect emissions (in tCO ₂ e)	305-2	GHG -Indir-Abs	24,916	24,062	-3.4%	GHG -Indir-LfL
Scope 3 - Other emissions		GHG -Indir-Abs	0	0		GHG -Indir-LfL
Total emissions (in tCO ₂ e/year)			41,832	41,525
CHANGE IN CARBON EMISSIONS

	Emissions on a like-for-like basis (LfL)
	2022	2023
Coverage of the reporting scope by surface area (in m ² )	1,504,452
Reporting scope coverage by surface area (in %)	84%
Reporting scope in number of applicable properties	251/293
Proportion of estimated data	0%		Change
Carbon intensity (in kgCO ₂ e/m ² /year)	25.4	24.5	-3.5%
GHG Protocol
Scope 1 - Total direct emissions (in tCO ₂ e)	15,744	15,849	0.7%
Scope 2 - Total indirect emissions (in tCO ₂ e)	22,440	20,985	-6.5%
Scope 3 - Other emissions	0	0
Total emissions (in tCO ₂ e/year)	38,185	36,834
CHANGE IN CARBON EMISSIONS	-3.5%

^* This data takes into account the low level of emissions associated with green electricity contracts. With coefficients that do not take this into account, the total emissions of the assets would amount to 52,953 tCO ₂ e, with a carbon intensity of 31.7 kgCO ₂ e/m ² /year.

Water - Total water consumption and water intensity ratio for buildings in use

The water used in the portfolio comes from a single source: municipal water supplies. Missing consumption figures were not included in the evaluation. According to the WRI Aqueduct map ⁽¹⁾ , 27.9% and 16.4% respectively of the surface water scope (i.e. 21.7% and 17.8% of water consumption in 2023) is located in a region at high or very high risk of baseline water stress (SASB IF-RE140a).

Total water consumption (Abs)	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			1,702,313	1,625,193
Reporting scope coverage by surface area (in %)			93%	88%
Number of applicable properties			279/302	280/308
Water intensity (in m ³ /m ² /year)	CRE2	Water-Int	1.55	1.41
Total water consumption (in m ³ )	303-1	Water-Abs	2,641,210	2,292,089
Estimated water consumption in vacant space (in m ³ )			0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )			205,028	298,206
Total extrapolated water consumption (in m ³ )			2,846,238	2,590,295
Water consumption - Like-for-like (LfL)
Coverage of the reporting scope by surface area (in m ² )			1,497,687
Reporting scope coverage by surface area (in %)			83%
Number of applicable properties			252/293
Proportion of estimated data			0%
Water intensity (in m ³ /m ² /year)			1.57	1.42
Like-for-like water consumption (in m ³ )	303-1	Water-LfL	2,349,101	2,133,264
CHANGE IN WATER CONSUMPTION INTENSITY			-9.2%

Waste - Total mass of waste in tonnes by type and disposal method

In most cases, municipalities are in charge of waste removal and provide no information as to the weight of the waste. However, the tonnage is available on certain sites.

Total waste production (Abs)	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			630,416	562,649
Reporting scope coverage by surface area (in %)			34%	31%
Number of applicable properties			39/302	34/308
Proportion of estimated data			50%	42%
Total non-hazardous waste (in tonnes)	306-2	Waste-Abs	5,161	5,506
Total hazardous waste (in tonnes)	306-2		0	0
of which recycled, re-used or composted waste	306-2	Waste-Abs	1,366	2,172
in %			26%	39%
of which incinerated (including with energy recovery)	306-2	Waste-Abs	NC	NC
of which landfill	306-2	Waste-Abs	NC	NC
of which other disposal methods	306-2	Waste-Abs	NC	NC
Rate of selective collection			100%	100%
Total extrapolated production of waste (in tonnes)			15,018	17,973
Waste production - Like-for-like (LfL)
Coverage of the reporting scope by surface area (in m ² )			502,722
Reporting scope coverage by surface area (in %)			28%
Number of applicable properties			28/293
Proportion of estimated data			55%
Rate of selective collection			100%	100%
Total waste (in tonnes)	306-2	Waste-LfL	3,977	4,694
Total hazardous waste (in tonnes)	306-2	Waste-LfL	0	0
of which recycled, re-used or composted waste			1,296	1,938
in %			33%	41%
CHANGE IN TOTAL WASTE PRODUCTION			18.0%

⁽¹⁾ Beta Aqueduct 2021 - Baseline Water Stress country ranking - https://wri.org/applications/aqueduct/country-rankings/.

3.7.1.7 Covivio head offices

Since 2017, the reporting of Covivio's headquarters covers its sites in Paris and Metz in France, Oberhausen and Berlin in Germany, and Milan and Rome in Italy.

Energy - Direct and indirect energy consumption by source and energy intensity ratio for "corporate" buildings occupied by Covivio (operational control scope)

Consumption data is based on invoices obtained from (internal) Property Management departments or energy suppliers.

	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			22,427	21,564
Reporting scope coverage by surface area (in %)			100%	100%
Number of applicable properties			6/6	6/6
Proportion of estimated data			0%	0%
Intensity (in KWhfe/m ² /year)	CRE1	Energy-Int	150	147
Intensity (in KWhfe/m ² /year)			212	197
Total direct energy (in kWhfe)	302-1	Fuel-Abs	499,389	483,757
Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	499,389	483,757
Natural gas (direct energy) - renewable source			0	0
Fuel oil (direct energy)	302-1	Fuel-Abs	0	0
Wood (direct energy)	302-1	Fuel-Abs	0	0
Total indirect energy	302-1	Elec-Abs	2,858,221	2,689,321
Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	1,079,117	1,098,815
Electricity (indirect energy) - renewable source			359,087	438,800
Renewable energy production	302-1	Elec-Abs	16,029	14,922
of which solar			16,029	14,922
District heating and cooling (indirect energy)	302-1	DH&C-Abs	1,436,046	1,151,706
Total energy consumption (in kWhfe)			3,357,610	3,173,078
Total energy (in GJ)			12,087	11,423
Total energy consumption (in kWhpe)			4,745,103	4,253,059
Estimated consumption for vacant space (in kWhpe)			0	0
Estimated consumption in occupied areas for which data is not available (in kWhpe)			0	0
Total measured and extrapolated energy consumption (in kWhpe)			4,745,103	4,253,059

	Total consumption (Abs)				Like-for-like (LfL)
		2022	2023			2022
Coverage of the reporting scope by surface area (in m ² )	EPRA BPRs	22,427	21,564		EPRA BPRs	21,564
Reporting scope coverage by surface area (in %)		100%	100%			100%
Reporting scope in number of applicable properties		6/6	6/6			6/6
Proportion of estimated data		0%	0%			0%
Managed and paid by the Tenant				Change
Total Electricity (in kWh)	Elec-Abs	1,438,204	1,537,615	6.9%	Elec-LfL	1,456,200
of which on a tenant submeter
of which shared services		1,438,204	1,537,615	6.9%		1,456,200
Total heating and cooling networks (in kWh)	DH&C-Abs	1,436,046	1,151,706	-19.8%	DH&C-LfL	1,426,887
of which on a tenant submeter
of which shared services		1,436,046	1,151,706	-19.8%		1,426,887
Total Gas-Fuel oil-Wood (in kWh)	Fuel-Abs	499,389	483,757	-3.1%	Fuels-LfL	495,622
of which on a tenant submeter
of which shared services		499,389	483,757	-3.1%		495,622
Intensity (in KWhfe/m ² /year)						156.7

	Like-for-like (LfL)
	2023
Coverage of the reporting scope by surface area (in m ² )	21,564
Reporting scope coverage by surface area (in %)	100%
Reporting scope in number of applicable properties	6/6
Proportion of estimated data	0%
Managed and paid by the Tenant		Change
Total Electricity (in kWh)	1,537,615	5.6%
of which on a tenant submeter
of which shared services	1,537,615	5.6%
Total heating and cooling networks (in kWh)	1,151,706	-19.3%
of which on a tenant submeter
of which shared services	1,151,706	-19.3%
Total Gas-Fuel oil-Wood (in kWh)	483,757	-2.4%
of which on a tenant submeter
of which shared services	483,757	-2.4%
Intensity (in KWhfe/m ² /year)	147.1	-6.1%

Carbon - Total direct or indirect GHG emissions and carbon intensity ratio for "corporate" buildings (operational control scope)

			Total Emissions (Abs)
	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			22,427	21,564
Reporting scope coverage by surface area (in %)			100%	100%
Reporting scope in number of applicable properties			6/6	6/6
Proportion of estimated data			0%	0%	Change
Carbon intensity (in kgCO ₂ e/m ² /year)	305-4	GHG-Int	20.0	20.3	1.9%
GHG Protocol						EPRA BPRs
Scope 1 - Total direct emissions (in tCO ₂ e)	305-1	GHG -Dir-Abs	87	89	3.3%	GHG -Dir-LfL
Scope 2 - Total indirect emissions (in tCO ₂ e)	305-2	GHG -Indir-Abs	361	349	-3.3%	GHG -Indir-LfL
Scope 3 - Other emissions (in tCO ₂ e)		GHG -Indir-Abs	0	0		GHG -Indir-LfL
Total emissions (in tCO ₂ e/year)			448	439
CHANGE IN CARBON EMISSIONS			1.9%

	Emissions on a like-for-like basis (LfL)
	2022	2023
Coverage of the reporting scope by surface area (in m ² )	21,564
Reporting scope coverage by surface area (in %)	100%
Reporting scope in number of applicable properties	6/6
Proportion of estimated data	0%		Change
Carbon intensity (in kgCO ₂ e/m ² /year)	24.0	20.3	-15.2%
GHG Protocol
Scope 1 - Total direct emissions (in tCO ₂ e)	86	89	4.1%
Scope 2 - Total indirect emissions (in tCO ₂ e)	432	349	-19.1%
Scope 3 - Other emissions (in tCO ₂ e)	0	0
Total emissions (in tCO ₂ e/year)	518	439
CHANGE IN CARBON EMISSIONS	-15.2%

^* This data takes into account the low level of emissions associated with green electricity contracts. With coefficients that do not take this into account, the total emissions of the assets would amount to 569 tCO ₂ e, with a carbon intensity of 26.4 kgCO ₂ e/m ² /year.

Water - Total water consumption and water intensity ratio for "corporate" buildings (operational control scope)

Total water consumption (Abs)	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			22,427	21,564
Reporting scope coverage by surface area (in %)			100%	100%
Number of applicable properties			6/6	6/6
Water intensity (in m ³ /m ² /year)	CRE2	Water-Int	0.18	0.24
Total water consumption (in m ³ )	303-1	Water-Abs	3,951	5,240
Estimated water consumption on vacant areas			0	0
Estimated consumption in occupied areas for which data is not available (in m ³ )			0	0
Total extrapolated water consumption (in m ³ )			3,951	5,240
Water consumption - Like-for-like (LfL)
Coverage of the reporting scope by surface area (in m ² )			21,564
Reporting scope coverage by surface area (in %)			100%
Reporting scope in number of applicable properties			6/6
Proportion of estimated data			0%
Water intensity (in m ³ /m ² /year)			0.18	0.24
Like-for-like water consumption (in m ³ )	303-1	Water-LfL	3,951	5,240
CHANGE IN WATER CONSUMPTION INTENSITY			32.6%

Waste - Total mass of waste in tonnes by type and disposal method for the "corporate" buildings (operational control scope)

Total waste production (Abs)	GRI standards	EPRA BPRs	2022	2023
Coverage of the reporting scope by surface area (in m ² )			22,427	20,719
Reporting scope coverage by surface area (in %)			100%	96%
Number of applicable properties			6/6	5/6
Proportion of estimated data			90%	92%
Total waste (in tonnes)	306-2	Waste-Abs	387	192
of which recycled, re-used or composted waste	306-2	Waste-Abs	0	0
in %	306-2		162	106
of which incinerated (including with energy recovery)		Waste-Abs	41.7%	55%
of which landfill	306-2	Waste-Abs	NC	NC
of which other disposal methods	306-2	Waste-Abs	NC	NC
Rate of selective collection			100%	100%
Total extrapolated production of waste (in tonnes)			387	200
Waste production - Like-for-like (LfL)
Reporting scope coverage by surface area (in m ² )			20,719
Reporting scope coverage by surface area (in %)			96%
Number of applicable properties			5/6
Proportion of estimated data			92%
Total waste (in tonnes)	306-2	Waste-LfL	377	192
of which recycled, re-used or composted waste			160	106
in %			42%	55%
Change in waste production			-48.9%

3.7.1.8 Consolidated environmental data

				Total operational control		Total Tertiary
		GRI	EPRA BPRs	2022	2023	2022
Energy/ Carbon	Reporting scope coverage by surface area (in m ² )			574,892	648,603	2,891,588
	Coverage of scope in surface area (in %)			98%	100%	90%
	Coverage of scope (number of properties)			42/43	43/43	367/413
	Proportion of estimated data					-
	Intensity (kWhfe/m ² /year)	CRE-1	Energy-Int	119.4	118.7	163.6
	Intensity (kWhpe/m ² /year)			133.0	130.5	250.0
	Total direct energy (kWhfe)	302-1	Fuel-Abs	16,959,846	20,262,405	122,559,238
	Natural gas (direct energy) - non-renewable source	302-1	Fuel-Abs	8,843,818	9,570,687	110,742,124
	Natural gas (direct energy) - renewable source	302-1	Fuel-Abs	8,116,028	10,691,719	9,507,495
	Fuel oil (direct energy)	302-1	Fuel-Abs	-	-	2,309,619
	Wood (direct energy)	302-1	Fuel-Abs	-	-	-
	Total indirect energy (kWhfe)	302-1	Elec-Abs	51,674,926	56,728,572	350,529,744
	Electricity (indirect energy) - non-renewable source	302-1	Elec-Abs	5,102,178	6,181,384	201,962,883
	Electricity (indirect energy) - renewable source	302-1	Elec-Abs	18,715,174	24,750,890	72,615,313
	Renewable energy production	302-1	Elec-Abs	32,641	122,414	254,132
	District heating and cooling (indirect energy)	302-1	DH&C-Abs	27,890,214	25,796,298	76,205,680
	Total energy consumption (in kWhfe)			68,634,772	76,990,977	473,088,982
	i.e. Total energy (GJ)			247,085	277,168	1,703,120
	Total energy consumption (in kWhpe)			76,436,359	84,633,756	722,866,921
	Total measured and extrapolated energy consumption (in kWhpe)			77,767,203	84,633,756	806,504,958
	CARBON INTENSITY (kgCO2e/m ² /year)	305-4	GHG-Int	8.8	7.4	21.1
	Scope 1 - Total direct emissions (in tCO2e)	305-1	GHG-Dir-Abs	1,542	1,771	20,403
	Scope 2 - Total indirect emissions (in tCO2e)	305-2	GHG -Indir-Abs	3,521	3,012	40,637
	Scope 3 - Other emissions (in tCO2e)		GHG -Indir-Abs	-	-	-
	Total emissions (tCO2e/year)			5,063	4,783	61,039
	Emissions taking into account the carbon trajectory of operations by reintegrating extrapolations and upstream emissions from energy production)			5,151	4,783	91,991
Water	Coverage of the reporting scope (in m ² )			584,902	577,005	2,643,820
	Coverage of scope in surface area (in %)			100%	89%	82%
	WATER INTENSITY (m ³ /m2/year)	CRE2	Water-Int	0.38	0.39	1.14
	Total water consumption (in m ³ )	303-1	Water-Abs	223,873	222,923	3,007,266
	Total water consumption (in m ³ )			223,873	241,899	3,553,376
Waste	Reporting scope coverage by surface area (in m ² )			495,891	505,278	1,190,046
	Scope coverage (in %)			85%	78%	37%
	Total non-hazardous waste (in tonnes)	306-2		4,855	2,226.3	10,661
	of which % recycled			26%	33%	26%

		Total Tertiary 2023	Total Residential 2023
Energy/ Carbon	Reporting scope coverage by surface area (in m ² )	2,818,958	2,756,716
	Coverage of scope in surface area (in %)	91%	95%
	Coverage of scope (number of properties)	376/407	4807/4936
	Proportion of estimated data	1.8%	19%
	Intensity (kWhfe/m ² /year)	171.8	147.6
	Intensity (kWhpe/m ² /year)	255.0	120.9
	Total direct energy (kWhfe)	129,355,409	220,471,680
	Natural gas (direct energy) - non-renewable source	115,002,234	210,718,570
	Natural gas (direct energy) - renewable source	12,094,995	-
	Fuel oil (direct energy)	2,258,180	8,871,286
	Wood (direct energy)	-	881,823
	Total indirect energy (kWhfe)	354,889,073	186,426,204
	Electricity (indirect energy) - non-renewable source	199,793,511	9,532,522
	Electricity (indirect energy) - renewable source	88,562,763	-
	Renewable energy production	390,753	909,145
	District heating and cooling (indirect energy)	66,532,798	176,893,683
	Total energy consumption (in kWhfe)	484,244,482	406,897,884
	i.e. Total energy (GJ)	1,743,280	1,464,832
	Total energy consumption (in kWhpe)	718,777,146	333,403,617
	Total measured and extrapolated energy consumption (in kWhpe)	750,260,871	350,476,154
	CARBON INTENSITY (kgCO2e/m ² /year)	22.0	29.7
	Scope 1 - Total direct emissions (in tCO2e)	21,991	45,012
	Scope 2 - Total indirect emissions (in tCO2e)	37,095	27,575
	Scope 3 - Other emissions (in tCO2e)	2,977	9,368
	Total emissions (tCO2e/year)	62,062	81,955
	Emissions taking into account the carbon trajectory of operations by reintegrating extrapolations and upstream emissions from energy production)	80,690	77,185 ⁽¹⁾
Water	Coverage of the reporting scope (in m ² )	2,685,393	130,097
	Coverage of scope in surface area (in %)	86%	91% of the panel
	WATER INTENSITY (m ³ /m2/year)	1.00	1.12
	Total water consumption (in m ³ )	2,687,267	159,389
	Total water consumption (in m ³ )	3,079,476	3,238,629
Waste	Reporting scope coverage by surface area (in m ² )	1,230,610	138,282
	Scope coverage (in %)	40%	97% of the panel
	Total non-hazardous waste (in tonnes)	9,096	2,994
	of which % recycled	37%	21%

⁽¹⁾ Exclusion of retail space from the scope.

Environmental indicators without climate corrections

	France Offices	Italy Offices	Germany Offices	German Residential	Hotels in Europe	Corporate
Operational control surface area (reporting coverage in m ² )	256,986	135,916	234,136			21,564
Total surface area (reporting coverage in m ² )	523,475	369,335	234,136	2,756,716	1,670,447	21,564
Energy consumption for operational control (kWhfe)	30,725,647	15,859,559	25,956,502	N/A		3,092,500
Energy consumption for operational control (kWhfe)	37,369,455	15,859,559	26,010,701			4,162,178
Final energy intensity for operational control (kWhfe/m ² / year)	119.6	116.7	110.9			143.4
Primary energy intensity for operational control (kWhfe/m ² /year)	145.4	116.7	111.1			193.0
Total energy consumption (in kWhfe)	78,148,460	59,509,337	36,124,388	336,310,362	295,996,078	3,092,500
Total energy consumption (in kWhfe)	120,665,194	93,797,464	40,358,923	275,565,678	451,703,181	4,162,178
Total final energy intensity of the portfolio (kWhfe/m ² / year)	149.3	161.1	154.3	122.0	177.2	143.4
Total primary energy intensity of portfolio (kWhfe/m ² /year)	230.5	254.0	172.4	100.0	270.4	193.0
Scope 1 - Total direct emissions (in tCO ₂ e)	1,086	482	0	0	0	85
Scope 2 - Total indirect emissions (in tCO ₂ e)	1,019	225	1,331	0	0	340
Scope 3 - Other emissions (in tCO ₂ e)	2,849.	10,037.	2,555	67,738	39,906.	0
Total emissions (tCO ₂ e/year)	4,954.	10,744.	3,886	67,738	39,906.	424
Carbon intensity (in kgCO ₂ e/m ² /year)	9.5	29.1	16.6	24.6	23.9	19.7

	Total operating	Total Group
Operational control surface area (reporting coverage in m ² )	648,603
Total surface area (reporting coverage in m ² )	648,603	5,575,674
Energy consumption for operational control (kWhfe)	75,634,208	N/A
Energy consumption for operational control (kWhfe)	83,401,893
Final energy intensity for operational control (kWhfe/m ² / year)	116.6
Primary energy intensity for operational control (kWhfe/m ² /year)	128.6
Total energy consumption (in kWhfe)		809,181,126
Total energy consumption (in kWhfe)		986,252,618
Total final energy intensity of the portfolio (kWhfe/m ² / year)	N/A	145.1
Total primary energy intensity of portfolio (kWhfe/m ² /year)		176.9
Scope 1 - Total direct emissions (in tCO ₂ e)		1,653
Scope 2 - Total indirect emissions (in tCO ₂ e)		2,915
Scope 3 - Other emissions (in tCO ₂ e)		123,085
Total emissions (tCO ₂ e/year)		127,653
Carbon intensity (in kgCO ₂ e/m ² /year)	7.04	22.9

3.7.2 Social indicators

3.7.2.1 Covivio ESU France

NUMBER OF EMPLOYEES	GRI STANDARDS	TOTAL	2021	2022	2023
Total workforce broken down by gender	102-8	Total (including CAPs)	302	309	303
		Men	43.0%	45.3%	42.2%
		Women	57.0%	54.7%	57.8%
Total workforce by type of employment contract broken down by gender		Permanent	92.7%	92.2%	90.4%
		Men	42.9%	44.2%	43.1%
		Women	57.1%	55.8%	56.9%
		Temporary	2.0%	1.0%	0.7%
		Men	0%	66.7%	50.0%
		Women	100%	33.3%	50.0%
		CAPs (Apprenticeship contracts)	5.3%	6.8%	8.9%
		Men	45.3%	57.1%	33.3%
		Women	54.7%	42.9%	66.7%
Total workforce by type of job broken down by gender		Full time	92.7%	93.9%	94.1%
		Men	45.0%	46.9%	43.5%
		Women	55.0%	53.1%	56.5%
		Part-time	7.3%	6.1%	5.9%
		Men	18.2%	21.1%	22.2%
		Women	81.8%	78.9%	77.8%
Distribution of workforce by geographic area and broken down by gender		Paris	74.5%	75.7%	74.9%
		Men	45.3%	46.6%	43.2%
		Women	54.7%	53.4%	56.8%
		Metz	20.2%	18.1%	19.1%
		Men	37.7%	42.9%	39.7%
		Women	62.3%	57.1%	60.3%
		Regional Offices	5.3%	6.1%	5.9%
		Men	31.3%	36.8%	38.9%
		Women	68.8%	63.2%	61.1%
Breakdown of workforce by professional category		Managers	83.4%	83.8%	82.2%
		Men	44.4%	46.3%	44.2%
		Women	55.6%	53.7%	55.8%
		Supervisors	8.9%	8.4%	8.6%
		Men	22.2%	23.1%	30.8%
		Women	77.8%	76.9%	69.2%
		Employees	7.6%	7.8%	9.2%
		Men	52.2%	58.3%	35.7%
		Women	47.8%	41.7%	64.3%
Breakdown of managerial staff		Male managers	46.6%	45.3%	50.6%
		Female managers	53.4%	54.7%	49.4%
Breakdown of workforce by age group		Age < 30	18.2%	22.0%	21.5%
		30-50 years old	53.0%	49.5%	49.2%
		Age > 50	28.8%	28.5%	29.4%
Turnover of M/F personnel	401-1	Total permanent contract departures	25	32	31
		Turnover rate of permanent contract departures	8.8%	11.4%	10.9%
		Men	3.9%	4.3%	6.0%
		Women	4.9%	7.1%	4.9%
Turnover by age group		Age < 30	2.5%	2.9%	5.3%
		30-50 years old	5.3%	7.1%	2.5%
		Age > 50	1.1%	1.4%	3.2%
Turnover by geographic area		Paris	7.1%	10%	10.2%
		Metz	1.4%	0.7%	0.4%
		Regional Offices	0.4%	0.7%	0.4%
Turnover rate of less than two years		Turnover rate related to permanent contract departures -2 years	7.9%	12.9%	10.0%
Level of incoming staff by contract type		Total new arrivals (first contract to staff excluding replacement caretaker staff)	53	67	52
		Total number of recruits on permanent contracts	22	38	20
		Of which conversion to permanent contract	9	6	4
		Youth Policy (summer jobs or apprentices)	16	23	28
		Medium temporary and temporary replacement contracts	6	6	4
Average number of hours of training per employee by gender and professional category	404-1	Per employee	18.7	21.0	17.9
		Per man	18.2	22.0	20.7
		Per woman	18.4	20.0	15.6
		Per manager	20.0	21.00	18.4
		Per supervisor	18.2	14.00	12.3
		Per employee	5.8	21.0	5.0
Percentage of employees receiving regular performance and career development reviews, by gender	404-3	Total	99.6%	98.9%	98.2%
		Per man	100%	98.4%	96.7%
		Per woman	99.4%	99.4%	99.3%
Absenteeism rate by gender	403-2	Total	2.2%	2.1%	2.7%
		Men	1.2%	1.0%	1.1%
		Women	2.9%	3.1%	3.9%
Work accident rate by geographic area and by gender		Total	0.71%	0.00%	0.98%
		Frequency rate	4.10	-	6.13
		Severity rate	0.09	-	0.27
		Men	0%	-	0%
		Women	0.7%	-	0.98%
		Paris	0.7%	-	0.98%
		Metz	0%	-	0%
		Regional Offices	0%	-	0%
Occupational illness rate by geographic zone and by gender		Total	0.3%	0.0%	0.0%
Percentage of all employees covered by collective agreements	102-41	%	100%	100%	100%
Ratio between the base salary and remuneration for women compared with the ratio for men, by professional category and by main operating sites	405-2	Male base salary (av.) (excluding vocational training certificate contracts (CAPs) and suspension)	€69,753	€73,245	€77,760
		Female base salary (av.) (excluding vocational training certificate contracts (CAPs) and suspension)	€57,757	€59,728	€62,257
		Average F/M ratio (excl. apprentices and suspension)	0.83	0.82	0.80
		Base salary for men (median)		€60,000	€62,518
		Base salary for women (median)		€49,338	€49,000
		Median F/M ratio		0.82	0.78
		Base salary, male managers	€72,210	€75,798	€81,177
		Base salary, female managers	€62,499	€63,448	€65,589
		F/M ratio, managers	0.87	0.84	0.81
		Average base salary, male supervisors	€36,913	€36,069	€36,156
		Average base salary, female supervisors	€33,931	€35,348	€36,713
		F/M ratio, supervisors	0.92	0.98	1.02
		Base salary, male office staff	€30,665	€31,546	N/A
		Base salary, female office staff	€26,010	€33,999	N/A
		F/M ratio, office staff	0.85	1.08	N/A
Return to work and retention rates after parental leave by gender	401-3	Number of employees with right to parental leave (with children younger than 3 years)	12.0%	8%	7%
		Women	7.6%	5%	5%
		Men	4.3%	3%	2%
		Employees who took parental leave (part-time or full-time)	28.0%	27%	15%
		Women	100%	100%	100%
		Men	0%	0%	0%
		Employees who returned to work after parental leave (for full-time departures only)	100%	100%	100%
		Women	100%	100%	100%
		Men	NA	NA	NA
		Employees who returned to work after parental leave (for full-time departures only) and are still employed 12 months later	100%	100%	100%
		Women	100%	100%	100%
		Men	NA	NA	NA
Percentage of total workforce represented in mixed Management-Employee Health and Safety Committees, monitoring and submitting opinions on the health and safety programme	403-1		100%	100%	100%
Employees with disabilities	Covivio indicator		1.3%	1.9%	1.7%
Percentage of employees having received training	Covivio indicator		85.0%	74%	78.1%
Payroll dedicated to training	Covivio indicator		4.08%	3.64%	3.75%
Internal mobility	Covivio indicator		19	9	6
Loans to personnel (% of employees who took out new loans compared to total staff)	Covivio indicator		0.4%	0.6%	0.7%
Works Council subsidies (% of payroll)	Covivio indicator		2.0%	2.0%	2.0%

3.7.2.2 Italy Offices

NUMBER OF EMPLOYEES	GRI STANDARDS	TOTAL	2021	2022	2023
Total workforce broken down by gender	102-8	Total	99	104	101
		Men	49.5%	51.0%	51.5%
		Women	50.5%	49.0%	48.5%
Total workforce by type of employment contract broken down by gender		Permanent	99.0%	96.2%	99.0%
		Men	49.0%	51.0%	52.0%
		Women	51.0%	49.0%	48.0%
		Temporary	1.0%	3.8%	1.0%
		Men	100%	50.0%	0.0%
		Women	0%	50.0%	100.0%
		CAP	0%	0%	0%
		Men	0%	0%	0%
		Women	0%	0%	0%
Total workforce reported by geographical area		Rome	40.4%	41.3%	39.6%
		Men	32.5%	32.6%	35.0%
		Women	67.5%	67.4%	65.0%
		Milan	58.6%	58.7%	60.4%
		Men	60.3%	63.9%	62.3%
		Women	39.7%	36.1%	37.7%
Total workforce by type of job broken down by gender		Full time	94.9%	96.2%	96.0%
		Men	52.1%	53.0%	53.6%
		Women	47.9%	47.0%	46.4%
		Part-time	5.1%	3.8%	4.0%
		Men	0%	0.0%	0.0%
		Women	100%	100.0%	100%
Total workforce by type of professional category reported by gender		Managers	12.1%	9.6%	9.9%
		Men	58.3%	50.0%	50.0%
		Women	41.7%	50.0%	50.0%
		Non-manager	87.9%	90.4%	90.1%
		Men	48.3%	51.1%	51.6%
		Women	51.7%	48.9%	48%
Total workforce broken down by age group		Age < 30	6.1%	5.8%	5.9%
		30-50 years old	68.7%	66.3%	67.3%
		Aged over 50	25.3%	27.9%	26.7%
Turnover of personnel broken down by gender, work contract and age group	401-1	Total departures	6	6	8
		of which temporary contracts	0%	0%	12.5%
		Turnover of permanent contracts	6.5%	6.1%	7.0%
		Men	4.3%	4.1%	2.0%
		Women	2.2%	2.0%	5.0%
		Age < 30	1.1%	0%	0%
		30-50 years old	3.2%	6%	5%
		Aged over 50	2.2%	0%	2%
Recruitment rate broken down by gender, work contract and age group	401-1	Total new arrivals	11	11	5
		of which temporary contracts	9.1%	36.4%	20%
		Recruitment rate, permanent contracts	10.8%	7.1%	4.0%
		Men	6.5%	6.1%	2.0%
		Women	4.3%	1.0%	2.0%
		Age < 30	3.2%	0.0%	0.0%
		30-50 years old	7.5%	7.1%	4.0%
		Aged over 50	0%	0.0%	0.0%
Average number of training hours per employee by gender and by professional category	404-1	Total	27.5	28.0	25.9
		Men	29.8	29.1	25.5
		Women	24.6	26.9	26.3
		Managers	34.3	25.4	23.9
		Non-managers	26.2	28.3	26.1
Proportion of employees given an annual performance and development appraisal interview, by gender	404-3	Total	93.9%	94.0%	94.0%
		Men	93.8%	98.0%	94.2%
		Women	94.0%	85.7%	93.8%
Absenteeism rate	403-2	Total	1.0%	2.5%	1.7%
		Men	0.6%	1.1%	0.91%
		Women	0.5%	1.4%	2.3%
Occupational illness rate		Total	0%	0%	0%
Occupational accident rate reported by gender		Total	0%	0%	0%
		Men	0%	0%	0%
		Women	0%	0%	0%
		Frequency rate	0	0%	0%
		Severity rate	0	0%	0%
Percentage of employees covered by a collective bargaining agreement	102-41	Total	100%	100%	100%
Ratio of basic salary and remuneration of women to men, by professional category	405-2	Female base salary (av.)	€52,101	€56,626	€56,617
		Male base salary (av.)	€64,735	€66,671	€70,394
		F/M ratio (excluding vocational training certificate contracts (CAPs) and suspension of contract)	0.80	0.85	0.80
		Base salary for men (median)		€45,008	€43,858
		Base salary for women (median)		€55,357	€60,001
		Median F/M ratio		0.85	0.73
		Female manager base salary	€134,471	€141,071	€134,671
		Male manager base salary	€145,081	€185,000	€198,000
		F/M manager ratio	0.93	0.85	0.68
		Base salary female non-manager	€42,949	€46,807	€47,099
		Base salary male non-manager	€51,344	€54,345	€56,819
		F/M non-manager ratio	0.84	0.85	0.83
Percentage of total workforce represented in mixed Management-Employee Health and Safety Committees, monitoring and submitting opinions on the H&S programme	403-1	Total	100%	100%	100%
Employees with disabilities	Covivio indicator	Total	4%	3.9%	4%
Payroll dedicated to training	Covivio indicator	Total	0.92%	1.0%	1.0%
Training rate	Covivio indicator	Total	74.7%	100%	100%
Internal mobility (within a corporate entity)	Covivio indicator	Total	2	1	1
Loans to personnel (% of employees who took out new loans compared to total staff)	Covivio indicator	Total	0%	0%	0%
Works Council subsidies (% of payroll)	Covivio indicator	Total	NC	NC	NC

3.7.2.3 Germany

NUMBER OF EMPLOYEES	GRI STANDARDS	TOTAL	2021	2022	2023
Total workforce broken down by gender	102-8	Total (including CAPs)	627	637	632
		Men	53.3%	52.7%	52.7%
		Women	46.7%	47.3%	47.3%
Total workforce by type of employment contract broken down by gender		Permanent	91.4%	93.6%	93.7%
		Men	53.8%	52.9%	53.4%
		Women	46.2%	47.1%	46.6%
		Temporary	6.1%	4.6%	3.8%
		Men	42.1%	51.7%	29.2%
		Women	57.9%	48.3%	70.8%
		CAP	2.6%	1.9%	2.5%
		Men	62.5%	50.0%	62.5%
		Women	37.5%	50.0%	37.5%
Total workforce reported by geographical area		Oberhausen	54.7%	54.2%	54.4%
		Men	52.2%	51.3%	51.2%
		Women	47.8%	48.7%	48.8%
		Berlin	34.9%	36.9%	37.0%
		Men	55.7%	55.3%	55.6%
		Women	44.3%	44.7%	44.4%
		Other German cities	10.4%	8.9%	8.5%
		Men	50.8%	50.9%	50.0%
		Women	49.2%	49.1%	50.0%
Total workforce by type of job broken down by gender		Full time	80.5%	84.0%	84.0%
		Men	60.8%	60.2%	60.5%
		Women	39.2%	39.8%	39.5%
		Part-time	19.5%	16.0%	16.0%
		Men	22.1%	13.7%	11.9%
		Women	77.9%	86.3%	88.1%
Total workforce by type of professional category reported by gender		Managers	11.5%	11.9%	13.8%
		Men	65.3%	63.2%	65.5%
		Women	34.7%	36.8%	34.5%
		Non-manager	88.5%	88.1%	86.2%
		Men	51.7%	51.3%	50.6%
		Women	48.3%	48.7%	49.4%
Total workforce broken down by age group		Age < 30	15.9%	15.5%	16.0%
		30-50 years old	53.4%	53.2%	53.6%
		Aged over 50	30.6%	31.2%	30.4%
Turnover of personnel broken down by gender, work contract and age group	401-1	Total departures	60	91	91
		of which temporary contracts	16.7%	15.4%	20.9%
		Turnover of permanent contracts	9.6%	13.4%	12.1%
		Men	5.6%	8.0%	6.5%
		Women	4.0%	5.4%	5.5%
		Age < 30	1.0%	1.9%	1.3%
		30-50 years old	4.8%	7.9%	6.4%
		Aged over 50	3.9%	3.7%	4.4%
Recruitment rate broken down by gender, work contract and age group	401-1	Total new arrivals	80	100	73
		of which temporary contracts	15%	13%	16.4%
		Recruitment rate, permanent contracts	13.1%	15.2%	10.2%
		Men	8.5%	9.4%	5.4%
		Women	4.6%	5.8%	4.9%
		Age < 30	3%	4.0%	2.7%
		30-50 years old	9%	8.2%	5.9%
		Aged over 50	2%	3.0%	1.7%
Average number of hours of training per employee by gender and professional category	404-1	Total	17.1	21.5	23.5
		Men	16.3	22.4	25.2
		Women	17.9	20.6	21.5
		Managers	11.3	21.3	60.1
		Non-managers	18.4	21.5	15.7
Proportion of employees given an annual performance and development appraisal interview, by gender	404-3	Total	67.0%	69.6%	95.8%
		Men	72.1%	75.2%	96.8%
		Women	60.8%	63.3%	94.6%
Reported absenteeism rate by gender	403-2	Total	3.8%	5.2%	4.2%
		Men	3.2%	4.3%	4.0%
		Women	4.2%	6.2%	4.4%
Rate of occupational illnesses reported		Total	0%	0%	0%
Occupational accident rate reported by gender		Total	1.75%	1.51%	1.35%
		Men	1.95%	0.63%	0.95%
		Women	1.51%	2.14%	1.81%
		Frequency rate	7.81	5.97	5.81
		Severity rate	0.012	0.005	0.0017
Percentage of employees covered by a collective bargaining agreement	102-41	Total	93.0%	93.9%	94.5%
Ratio of basic salary and remuneration of women to men, by professional category	405-2	Female base salary (av.)	€49,986	€51,096	€52,559
		Male base salary (av.)	€58,255	€59,089	€60,452
		F/M ratio (excluding vocational training certificate contracts (CAPs) and suspension of contract)	0.86	0.86	0.87
		Base salary for men (median)		€49,520	€51,000
		Base salary for women (median)		€54,000	€56,040
		Median F/M ratio		0.92	0.91
		Female manager base salary	€75,810	€78,138	€77,206
		Male manager base salary	€86,508	€88,776	€86,204
		F/M manager ratio	0.88	0.88	0.90
		Base salary female non-manager	€47,291	€48,291	€49,756
		Base salary male non-manager	€54,293	€54,378	€55,184
		F/M non-manager ratio	0.87	0.89	0.90
Return to work and retention rates after parental leave, by gender	414-2	Number of employees entitled to parental leave (with children under the age of 3)	20	6.0%	3.2%
		Men	7	36.1%	68.4%
		Women	13	63.9%	31.6%
		Employees who have exercised their right to parental leave (full-time or part-time)	19	100%	100%
		Men	6	36.1%	68.4%
		Women	13	63.9%	31.6%
		Return rate after parental leave (full-time only)	14	66.7%	100%
		Men	6	58.3%	65.0%
		Women	8	41.7%	35.0%
		Retention rate following parental leave (12 months following return)	8	38.9%	84.2%
		Men	4	42.9%	75.0%
		Women	4	57.1%	25.0%
Percentage of total workforce represented in mixed Management-Employee Health and Safety Committees, monitoring and submitting opinions on the health and safety programme	403-1	Total	100%	100%	100%
Employees with disabilities	Covivio indicator	Total	4%	6.1%	5.5%
Payroll dedicated to training	Covivio indicator	Total	0.8%	4%	2.14%
Training rate	Covivio indicator	Total	37.6%	68%	72%
Internal mobility (within a corporate entity)	Covivio indicator	Total	18	19	8
Loans to personnel (% of employees who took out new loans compared to total staff)	Covivio indicator	Total	0.6%	0.8%	1.3%
Works Council grants	Covivio indicator	Total	0.2%	0.3%	0.3%

3.7.2.4 Group consolidated

Number of employees	GRI STANDARDS	Total	2021	2022	2023
Total workforce broken down by gender	102-8	Total (including CAPs)	1,028	1,050	1,036
		Men	513	529	513
		Women	515	521	523
Total workforce by type of employment contract broken down by gender		Permanent	951	981	966
		Men	476	492	486
		Women	475	489	480
		Temporary	45	36	27
		Men	17	19	8
		Women	28	17	19
		CAP	32	33	43
		Men	20	18	19
		Women	12	15	24
Total workforce reported by geographical area		Main site 1 (Paris / Milan / Oberhausen)	627	622	611
		Men	334	300	288
		Women	293	322	323
		Main site 2 (Metz / Rome / Berlin)	302	352	353
		Men	130	193	191
		Women	172	159	162
		Other locations	99	76	72
		Men	49	36	34
		Women	50	40	38
Total workforce by type of job broken down by gender		Full time	879	925	913
		Men	482	511	497
		Women	397	414	416
		Part-time	149	125	123
		Men	31	18	16
		Women	118	107	107
Total workforce by type of professional category reported by gender		Managers	157	157	174
		Men	88	89	101
		Women	69	68	73
		Non-manager	871	893	862
		Men	425	440	412
		Women	446	453	450
Total workforce broken down by age group		Age < 30	161	173	172
		30-50 years old	563	561	556
		Aged over 50	304	316	308
Turnover of personnel broken down by gender, work contract and age group	401-1	Total departures	103	135	133
		of which temporary contracts	21.4%	14.8%	17.3%
		Turnover of permanent contracts	9.05%	12.1%	11.2%
		Men	4.9%	6.5%	5.9%
		Women	4.1%	5.6%	5.3%
		Age < 30	1.5%	2.0%	2.3%
		30-50 years old	4.8%	7.5%	5.1%
		Aged over 50	2.8%	2.6%	3.8%
Recruitment rate broken down by gender, work contract and age group		Total new arrivals	138	178	130
		of which temporary contracts	27.5%	25.8%	34.6%
		Recruitment rate, permanent contracts	11.17%	13.9%	8.7%
		Men	6.5%	8.3%	4.4%
		Women	4.7%	5.6%	4.3%
		Age < 30	3.2%	5.0%	2.4%
		30-50 years old	6.9%	6.8%	5.1%
		Aged over 50	1.0%	2.0%	1.1%
Average number of hours of training per employee by gender and professional category	404-1	Total	19.3	22.2	22.1
		Men	19.0	23.2	23.8
		Women	19.0	21.3	20.4
		Managers	17.9	21.8	43.0
		Non-managers	17.8	21.2	15.8
Proportion of employees given an annual performance and development appraisal interview, by gender	404-3	Total (Group weighted average)	79.4%	80.6%	96.3%
		Men	81.3%	83.5%	96.5%
		Women	77.3%	77.3%	96.0%
Reported absenteeism rate by gender	403-2	Total	3.0%	4.0%	3.5%
		Men	2.5%	3.1%	3.0%
		Women	3.4%	4.7%	4.1%
Rate of occupational illnesses reported		Total	0.1%	0.0%	0.0%
Occupational accident rate reported by gender		Total	1.1%	0.9%	1.1%
		Men	1.3%	0.4%	0.6%
		Women	0.9%	1.2%	1.0%
		Frequency rate	5.91	3.6270	5.298
		Severity rate	0.0976	0.0304	0.180
Percentage of employees covered by a collective bargaining agreement	102-41	Total	95.8%	96.3%	96.6%
Ratio of basic salary and remuneration of women to men, by professional category	405-2	Average F/M salary ratio (excluding vocational training certificate contracts (CAPs) and suspension of contract) (Group weighted average)	0.85	0.85	0.85
		Median F/M salary ratio (excluding vocational training certificate contracts (CAPs) and suspension of contract) (Group weighted average)		0.89	0.86
		F/M manager ratio	0.88	0.88	0.87
		F/M non-manager ratio	0.87	0.87	0.88
Payroll dedicated to training	Covivio indicator	Total	1.8%	3.6%	2.5%
Training rate	Covivio indicator	Total	55.3%	73%	77%
Internal mobility (within a corporate entity)	Covivio indicator	Total	37	29	15
Loans to personnel (% of employees who took out new loans compared to total staff)	Covivio indicator	Total	0.5%	0.6%	1.0%

3.7.3 Regulatory tables related to European taxonomy

The table below presents the data relating to the taxonomy; the methodology used is detailed in Section 3.3.4.1.

3.7.3.1 Revenues

				Substantial contribution criterion
Economic activities	Code	Absolute revenue	Share of revenue	Climate change mitigation	Climate change adaptation	Water and marine resources
		EUR	%	Y/N N/EL	Y/N N/EL	Y/N N/EL
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Construction of new buildings	CCM - 7.1	1,508,000	0.12%	YES
Renovation of existing buildings	CCM - 7.2	925,000	0.07%	YES
Acquisition and ownership of buildings	CCM - 7.7	305,102,602	24.0%	YES
Electricity production using solar photovoltaic technology	CCM - 4.1	473,000	0.04%	YES
Revenue from environmentally sustainable activities (A.1)		308,009,602	24.2%	24.2%	-	-
of which enabling		-	0%	0%	-	-
of which transitional		925,000	0.07%
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Construction of new buildings	CCM - 7.1 Circular economy - 3.1 ^*	7,974,000	0.6%	EL	N	N
Acquisition and ownership of buildings	CCM - 7.7	630,100,978	49.6%	EL	N	N
Hotels, tourist accommodation, campsites and similar accommodation	Biodiversity - 2.1 ^*	291,495,298	22.9%	N	N	N
Revenue from activities that are taxonomy eligible but not environmentally sustainable (not aligned with taxonomy) (A.2)		929,570,275	73.2%	%	%	%
Revenue from activities not eligible for taxonomy (A)		1,237,578,877	97.4%	%	%	%
B. Activities not eligible for taxonomy
Revenue from activities not eligible for taxonomy (B)		€32,623,000	2.6%
Total A + B		€1,270,201,877	100%

	Substantial contribution criterion			DNSH criteria (Do No Significant Harm)
Economic activities	Circular economy	Pollution	Biodiversity and ecosystems	Climate change mitigation	Climate change adaptation	Water and marine resources
	Y/N N/EL	Y/N N/EL	Y/N N/EL	Y/N	Y/N	Y/N
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Construction of new buildings					YES	YES
Renovation of existing buildings					YES	YES
Acquisition and ownership of buildings					YES	YES
Electricity production using solar photovoltaic technology					YES	YES
Revenue from environmentally sustainable activities (A.1)	-	-		-
of which enabling	-	-		-
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Construction of new buildings	EL	N	N
Acquisition and ownership of buildings	N	N	N
Hotels, tourist accommodation, campsites and similar accommodation	N	N	EL
Revenue from activities that are taxonomy eligible but not environmentally sustainable (not aligned with taxonomy) (A.2)	%	%
Revenue from activities not eligible for taxonomy (A)	%	%
B. Activities not eligible for taxonomy
Revenue from activities not eligible for taxonomy (B)
Total A + B

	DNSH criteria (Do No Significant Harm)
Economic activities	Circular economy	Pollution	Biodiversity and ecosystems	Minimum guarantees	Share of revenue aligned (A.1) or eligible (A.2) for taxonomy, year N-1	Category (enabling activity)
	Y/N	Y/N	Y/N	Y/N	%	H
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Construction of new buildings	YES	YES	YES	YES	0.03%
Renovation of existing buildings	YES	YES	YES	YES	0%
Acquisition and ownership of buildings	YES	YES	YES	YES	21.70%
Electricity production using solar photovoltaic technology	YES	YES	YES	YES	0.00%
Revenue from environmentally sustainable activities (A.1)					21.7%
of which enabling					0%
of which transitional					0%
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Construction of new buildings					2.10%
Acquisition and ownership of buildings					54.70%
Hotels, tourist accommodation, campsites and similar accommodation
Revenue from activities that are taxonomy eligible but not environmentally sustainable (not aligned with taxonomy) (A.2)					78,50%
Revenue from activities not eligible for taxonomy (A)
B. Activities not eligible for taxonomy
Revenue from activities not eligible for taxonomy (B)
Total A + B

Economic activities	Category (transitional activity)
	T
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Construction of new buildings
Renovation of existing buildings	T
Acquisition and ownership of buildings
Electricity production using solar photovoltaic technology
Revenue from environmentally sustainable activities (A.1)
of which enabling
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Construction of new buildings
Acquisition and ownership of buildings
Hotels, tourist accommodation, campsites and similar accommodation
Revenue from activities that are taxonomy eligible but not environmentally sustainable (not aligned with taxonomy) (A.2)
Revenue from activities not eligible for taxonomy (A)
B. Activities not eligible for taxonomy
Revenue from activities not eligible for taxonomy (B)
Total A + B

^* Only the eligibility calculation is required this year for the other four environmental objectives.

3.7.3.2 CAPEX


Economic activities	Code	Capital expenditure	Share of capital expenditure
		EUR	%
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Renovation of existing buildings	CCM/CCA - 7.2	66,332,031	13.4%
Installation, maintenance and repair of energy efficiency equipment	CCM/CCA - 7.3	28,043,296	5.7%
Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings	CCM / CCA - 7.5	533,634	0.1%
Installation, maintenance and repair of renewable energy technologies	CCM / CCA - 7.6	819,722	0.2%
Acquisition and ownership of buildings	CCM/CCA - 7.7	266,220,965	53.9%
Professional services related to building energy efficiency	CCM/CCA - 9.3	161,030	0.0%
Capital expenditure for environmentally sustainable activities (A.1)		362,110,678	73.3%
of which enabling		29,557,682	6.0%
of which transitional		66,332,031	13.4%
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Acquisition and ownership of buildings	CCM/CCA - 7.7	132,193,492	26.7%
Capital expenditure for activities eligible for the taxonomy but not environmentally sustainable (A.2)		132,193,492	26.7%
Capital expenditure for activities eligible for the taxonomy (A)		494,304,171	100.0%
B. Activities not eligible for taxonomy
Capital expenditure for activities not eligible for taxonomy			0%
Total A + B		494,304,171	100%

	Substantial contribution criterion
Economic activities	Climate change mitigation	Climate change adaptation	Water and marine resources
	Y/N N/EL	Y/N N/EL	Y/N N/EL
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Renovation of existing buildings	Y	Y	N
Installation, maintenance and repair of energy efficiency equipment	Y	Y	N
Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings	Y	Y	N
Installation, maintenance and repair of renewable energy technologies	Y	Y	N
Acquisition and ownership of buildings	Y	Y	N
Professional services related to building energy efficiency	Y	Y	N
Capital expenditure for environmentally sustainable activities (A.1)	68.6%	73.3%	%
of which enabling	6.0%	%	%
of which transitional	13.4%
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Acquisition and ownership of buildings	EL	EL	N
Capital expenditure for activities eligible for the taxonomy but not environmentally sustainable (A.2)	%	%	%
Capital expenditure for activities eligible for the taxonomy (A)	%	%	%
B. Activities not eligible for taxonomy
Capital expenditure for activities not eligible for taxonomy
Total A + B

	Substantial contribution criterion
Economic activities	Circular economy	Pollution	Biodiversity and ecosystems
	Y/N N/EL	Y/N N/EL	Y/N N/EL
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Renovation of existing buildings	N	N	N
Installation, maintenance and repair of energy efficiency equipment	N	N	N
Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings	N	N	N
Installation, maintenance and repair of renewable energy technologies	N	N	N
Acquisition and ownership of buildings	N	N	N
Professional services related to building energy efficiency	N	N	N
Capital expenditure for environmentally sustainable activities (A.1)	%	%	%
of which enabling	%	%	%
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Acquisition and ownership of buildings	N	N	N
Capital expenditure for activities eligible for the taxonomy but not environmentally sustainable (A.2)	%	%	%
Capital expenditure for activities eligible for the taxonomy (A)	%	%	%
B. Activities not eligible for taxonomy
Capital expenditure for activities not eligible for taxonomy
Total A + B

	DNSH criteria (Do No Significant Harm)
Economic activities	Climate change mitigation	Climate change adaptation	Water and marine resources
	Y/N	Y/N	Y/N
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Renovation of existing buildings	Y	Y	Y
Installation, maintenance and repair of energy efficiency equipment	Y	Y	Y
Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings	Y	Y	Y
Installation, maintenance and repair of renewable energy technologies	Y	Y	Y
Acquisition and ownership of buildings	Y	Y	Y
Professional services related to building energy efficiency	Y	Y	Y
Capital expenditure for environmentally sustainable activities (A.1)	Y	Y	Y
of which enabling
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Acquisition and ownership of buildings
Capital expenditure for activities eligible for the taxonomy but not environmentally sustainable (A.2)
Capital expenditure for activities eligible for the taxonomy (A)
B. Activities not eligible for taxonomy
Capital expenditure for activities not eligible for taxonomy
Total A + B

	DNSH criteria (Do No Significant Harm)
Economic activities	Circular economy	Pollution	Biodiversity and ecosystems
	Y/N	Y/N	Y/N
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Renovation of existing buildings	Y	Y	Y
Installation, maintenance and repair of energy efficiency equipment	Y	Y	Y
Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings	Y	Y	Y
Installation, maintenance and repair of renewable energy technologies	Y	Y	Y
Acquisition and ownership of buildings	Y	Y	Y
Professional services related to building energy efficiency	Y	Y	Y
Capital expenditure for environmentally sustainable activities (A.1)	Y	Y	Y
of which enabling
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Acquisition and ownership of buildings
Capital expenditure for activities eligible for the taxonomy but not environmentally sustainable (A.2)
Capital expenditure for activities eligible for the taxonomy (A)
B. Activities not eligible for taxonomy
Capital expenditure for activities not eligible for taxonomy
Total A + B


Economic activities	Minimum guarantees	Share of capital expenditure aligned (A.1) or eligible (A.2) for taxonomy, year N-1	Category (enabling activity)
	Y/N	%	H/T
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Renovation of existing buildings	Y	10.40%
Installation, maintenance and repair of energy efficiency equipment	Y	2.80%	H
Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings	Y	0.00%	H
Installation, maintenance and repair of renewable energy technologies	Y	0%	H
Acquisition and ownership of buildings	Y	62%
Professional services related to building energy efficiency	Y	0%	H
Capital expenditure for environmentally sustainable activities (A.1)	Y	75.1%
of which enabling		2.8%
of which transitional		10.4%
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Acquisition and ownership of buildings		%
Capital expenditure for activities eligible for the taxonomy but not environmentally sustainable (A.2)		%
Capital expenditure for activities eligible for the taxonomy (A)		%
B. Activities not eligible for taxonomy
Capital expenditure for activities not eligible for taxonomy
Total A + B

Economic activities	Category (transitional activity)
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Renovation of existing buildings	T
Installation, maintenance and repair of energy efficiency equipment
Installation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings
Installation, maintenance and repair of renewable energy technologies
Acquisition and ownership of buildings
Professional services related to building energy efficiency
Capital expenditure for environmentally sustainable activities (A.1)
of which enabling
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Acquisition and ownership of buildings
Capital expenditure for activities eligible for the taxonomy but not environmentally sustainable (A.2)
Capital expenditure for activities eligible for the taxonomy (A)
B. Activities not eligible for taxonomy
Capital expenditure for activities not eligible for taxonomy
Total A + B

In the case of Covivio, Capex related to real estate activities aligned under the mitigation objective is also automatically aligned under the adaptation objective (3.3.4.1). The Capex for activity 7.7 are thus included in the adaptation box, but 57% of the Group's Capex is also aligned for mitigation.

In addition, to avoid double counting, priority has been given to activity 7.7, so that an energy efficiency Capex is only included in the table if it relates to non-green assets under mitigation or adaptation headings.

3.7.3.3 OPEX


Economic activities	Code	Operating expenses	Share of operating expenses
		EUR	%
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Operating expenses for environmentally sustainable activities (A.1)		NC	%
of which enabling			%
of which transitional			%
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)		NC	%
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)		NC	%
B. Activities not eligible for taxonomy
Operating expenses for activities not eligible for taxonomy		NC	%
Total A + B		628,101,030	100%

	Substantial contribution criterion
Economic activities	Climate change mitigation	Climate change adaptation	Water and marine resources
	Y/N N/EL	Y/N N/EL	Y/N N/EL
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Operating expenses for environmentally sustainable activities (A.1)	%	%	%
of which enabling	%	%	%
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)	%	%	%
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)	%	%	%
B. Activities not eligible for taxonomy
Operating expenses for activities not eligible for taxonomy
Total A + B

	Substantial contribution criterion
Economic activities	Circular economy	Pollution	Biodiversity and ecosystems
	Y/N N/EL	Y/N N/EL	Y/N N/EL
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Operating expenses for environmentally sustainable activities (A.1)	%	%	%
of which enabling	%	%	%
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)	%	%	%
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)	%	%	%
B. Activities not eligible for taxonomy
Operating expenses for activities not eligible for taxonomy
Total A + B

	DNSH criteria (Do No Significant Harm)
Economic activities	Climate change mitigation	Climate change adaptation	Water and marine resources
	Y/N	Y/N	Y/N
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Operating expenses for environmentally sustainable activities (A.1)
of which enabling
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)
B. Activities not eligible for taxonomy
Operating expenses for activities not eligible for taxonomy
Total A + B

	DNSH criteria (Do No Significant Harm)
Economic activities	Circular economy	Pollution	Biodiversity and ecosystems
	Y/N	Y/N	Y/N
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Operating expenses for environmentally sustainable activities (A.1)
of which enabling
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)
B. Activities not eligible for taxonomy
Operating expenses for activities not eligible for taxonomy
Total A + B


Economic activities	Minimum guarantees	Share of operating expenses aligned (A.1) Or eligible (A.2) With taxonomy, year N-1	Category (enabling activity)
	Y/N	%	H/T
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Operating expenses for environmentally sustainable activities (A.1)		%
of which enabling		%
of which transitional		%
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)		%
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)		%
B. Activities not eligible for taxonomy
Operating expenses for activities not eligible for taxonomy
Total A + B

Economic activities	Category (transitional activity)
A. Activities eligible for taxonomy
A.1. Environmentally sustainable activities (aligned with taxonomy)
Operating expenses for environmentally sustainable activities (A.1)
of which enabling
of which transitional
A.2. Activities eligible for taxonomy but not environmentally sustainable (not aligned with taxonomy)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)
Operating expenses for activities eligible for taxonomy but not environmentally sustainable (A.2)
B. Activities not eligible for taxonomy
Operating expenses for activities not eligible for taxonomy
Total A + B

A materiality analysis of Opex found that approximately 9% of the Group's total Opex fell within the scope of the taxonomy. This 9% was calculated on the basis of income statement items. A more detailed analysis would have further reduced the scope of Opex covered by the taxonomy.

NC = Not Calculated.

NA = Not Applicable (objectives 3 to 6 not published and DNSH not analysed due to exemption).

3.7.4 Concordance table - regulatory obligations

Covivio's SNFP meets the obligations of the Decree of 9 August 2017 to implement the Order of 19 July 2017 on the publication of non-financial information, as shown in the tables below.

Topics from Article L. 225-102-1 resulting from Order no 2017-1162 of 12 July 2017	Chapters
Respect for human rights	3.6.2
Fight against corruption	3.6.2.2
Impact of activities on climate change	3.3.3.1
Societal commitments to sustainable development	3.4.1
Circular economy	3.3.1.3
Combating food waste	3.3.2.5
Fight against discrimination and promotion of diversity	3.5.1.5
Collective agreements and working conditions	3.5.2.1

The provisions of the law of 23 October 2018 relating to the fight against tax evasion are taken into account in Covivio's risk review. Chapter 3.6.1.5 describes the policies and actions implemented to comply with the tax regulations of the countries in which Covivio operates. The list of consolidated companies is presented in Chapter 5.2.3.5 of this Document.

Considering the nature of Covivio's business, details of which can be found in this document and more particularly in its business model (3.2.5), it appears that the implications of the French Sustainable Food law of 30 October 2018 (combating food insecurity, respect for animal welfare and responsible, fair and sustainable food) are limited for the company.

In line with law no 2023-703 of 1 August 2023 amending Article L. 225-102-1 of the French Commercial Code aimed at promoting the nation-army link and supporting the commitment to the reserves, the Group provides for an authorisation of absence for reservist employees in the event that an employee declares themselves to the Human Resources Department. To date, this has no impact on the group's financial performance given the absence of employees declared to Covivio.

	Compliance with decree
Topics and subtopics arising from the decree of 9 August 2017	France Offices	Italy Offices	Germany	Hotels in Europe
Employment
Total workforce and breakdown of employees by gender, age and geographic area
New hires and redundancies
Remuneration and changes in remuneration	3.7.2.1	3.7.2.2	3.7.2.3	3.7.2.1
Organisation of work
Organisation of working hours
Absenteeism	3.7.2.1	3.7.2.2	3.7.2.3	3.7.2.1
Labour/management relations
Organisation of staff communications, specifically employee information and consultation as well as
negotiation procedures
Analysis of collective labour agreements	3.5.2.1
Health and safety
Workplace health and safety conditions
Analysis of workplace health and safety agreements signed with trade union organisations or
employee representatives	3.5.2.1
Workplace accidents, particularly frequency and severity, and occupational illnesses	3.7.2.1	3.7.2.2	3.7.2.3	3.7.2.1
Training policies implemented, particularly related to environmental protection	3.5.1.2
Total number of hours of training	3.7.2.1	3.7.2.2	3.7.2.3	3.7.2.1
Diversity and equal opportunities/equal treatment
Policy established and steps taken to promote gender equality
Policy established and steps taken to promote hiring and integration of people with disabilities
Policy established and steps taken to combat discrimination	3.5.2.4
Promotion of and compliance with the provisions of the fundamental ILO conventions
Freedom of association and the right to collective bargaining	3.5.2.1
The elimination of discrimination with respect of employment and occupation	3.5.1.5
The elimination of forced or compulsory labour
The effective abolition of child labour	3.5.1.4
General environmental policy
Company organisation to take environmental issues into account and processes in place for environmental evaluation and certification, where applicable	3.2.5.1
Employee environmental protection training and information	3.5.2.2.3
Resources allocated to preventing environmental and pollution risks	3.3.3
The amount of provisions and insurance for environmental risks, except if the nature of this information would cause serious harm to the company in connection with ongoing litigation	3.3.3.3
Pollution and waste management
Measures to prevent, reduce or remedy discharges into the water, air and soil that have serious environmental impacts	3.3.3.3
Consideration of any form of pollution specific to a particular activity, especially noise and light pollution	3.3.3.3.2
Circular economy, waste prevention and management
Measures to prevent, recycle, reuse, and otherwise reclaim and eliminate waste
Measures implemented to combat food waste	3.3.2.5
Sustainable use of resources
Water consumption and supply based on local constraints	3.3.2.4
Consumption of raw materials and steps taken to improve efficiency of use	3.3.1.2
Energy consumption, steps taken to improve energy efficiency and the use of renewable energy	3.3.2.2
Land use	3.3.3.2
Climate change
Facilities emitting significant amounts of greenhouse gases	3.3.2.3
Climate change adaptation impacts	3.3.3.1
Voluntary medium- and long-term GHG reduction targets and resources implemented	3.2.6
Protection of biodiversity
Steps taken to promote biodiversity	3.4.1.4
Regional economic and social impact of the company's operations/Corporate commitments to sustainable development
Employment and regional/local development	3.4.1.2.1
Local and waterfront communities	3.4.1.2.2
Relations and quality of dialogue with these individuals or organisations/stakeholders	3.4.1.1
Partnership and sponsorship activities	3.4.1.3
Sub-contracting and suppliers
Consideration of social and environmental issues in the company's purchasing policy
Significance of subcontracting and consideration, in relationships with subcontractors and suppliers, of their social and environmental responsibility
Consideration, in relationships with subcontractors and suppliers, of their social and corporate responsibility	3.4.2
Fair business practices
Actions taken to prevent corruption	3.6.2
Steps taken to ensure consumer health and safety	3.3.3.3
Human Rights
Steps taken to support human rights	3.2.3.3

Promotion of and compliance with the provisions of the fundamental ILO conventions

ILO's aim is for every person to have access to decent and productive work in conditions of freedom, equality, safety and dignity. Covivio and its subsidiaries apply all the ILO conventions (3.6.2). In addition, the countries in which they operate their business have adopted legislation that is influenced and guided by the conventions adopted by the ILO.

3.7.5 SASB Index - Real Estate Standards

Sustainability Disclosure Topics & Accounting metrics

Topic	Accounting Metric	Category	Unit of Measure	Code	Offices / France	Offices / Italy
Energy Management	Energy consumption data coverage as a percentage of total floor area, by property subsector	Quantitative	% by floor area	IF-RE-130a.1	3.7.1.1	3.7.1.2
	Total energy consumed by portfolio area with data coverage, percentage grid electricity, and percentage renewable, by property subsector	Quantitative	kWh, %	IF-RE-130a.2	3.7.1.1	3.7.1.2
	Like-for-like percentage change in energy consumption for the portfolio area with data coverage, by property subsector	Quantitative	%	IF-RE-130a.3	3.7.1.1	37.1.2
	Percentage of eligible portfolio that has an energy rating and is certified to energy performance standards, by property subsector	Quantitative	% by floor area	IF-RE-130a.4	(1) 3.3.2.2.3 (2) 3.3.1.3.1.	(1) 3.3.2.2.3 (2) 3.3.1.3.1
	Description of how building energy management considerations are integrated into property investment analysis and operational strategy	Discussion and analysis	N/A	IF-RE-130a.5	3.3.2.2	3.3.2.2
Water Management	Water withdrawal data coverage as a percentage of total floor area and floor area in regions with High or Extremely High Baseline Water Stress, by property subsector	Quantitative	% by floor area	IF-RE- 140a.1	3.7.1.1	3.7.1.2
	Total water withdrawn by portfolio area with data coverage and percentage in regions with High or Extremely High Baseline Water stress, by property subsector	Quantitative	m ³ , %	IF-RE- 140a.2	3.7.1.1	3.7.1.2
	Like-for-like percentage change in water withdrawn for portfolio area with data coverage, by property subsector	Quantitative	%	IF-RE- 140a.3	3.7.1.1	3.7.1.2
	Description of water management risks and discussion of strategies and practices to mitigate those risks	Discussion and analysis	N/A	IF-RE- 140a.4	3.3.2.4	3.3.2.4
Management of tenant sustainability impacts	Percentage of new leases that contain a cost recovery clause for resource efficiency-related capital improvements and associated leased floor area, by property subsector	Quantitative	% by floor area, m ²	IF-RE-410a.1	Depending on local regulation and on the types of leases
	Percentage of tenants that are separately metered or submetered for grid electricity consumption and water withdrawals, by property subsector	Quantitative	% by floor area	IF-RE- 410a.2	3.7.1.1	3.7.1.2
	Discussion of approach to measuring, incentivising, and improving sustainability impacts of tenants	Discussion and analysis	N/A	IF-RE-410a.3
Climate change adaptation	Area of properties located in 100-year flood zones, by property subsector	Quantitative	_m 2	IF-RE- 450a.1
	Description of climate change risk exposure analysis, degree of systematic portfolio exposure, and strategies for mitigating risks	Discussion and analysis	N/A	IF-RE- 450a.2

Topic	Residential/ Germany	Hotels/ Europe	Group
Energy Management	3.7.1.3	3.7.1.4	3.3.2.2.1
	3.7.1.3	3.7.1.4	3.3.2.2.1
	3.7.1.3	3.7.1.4	N.C.
	(1) 3.3.2.2.3	(1) 3.3.2.2.3	(1) 3.3.2.2.3
	(2) 3.3.1.3.1	(2) 3.3.1.3.1	(2) 3.3.1.3.1
	3.3.2.2	3.3.2.2	3.3.2.2
Water Management	3.7.1.3	3.7.1.4	3.3.2.4.1
	3.7.1.3	3.7.1.4	3.3.2.4.1
	3.7.1.3	3.7.1.4	3.7.1.7
	3.3.2.4	3.3.2.4	3.3.2.4
Management of tenant sustainability impacts	Depending on local regulation and on the types of leases
	3.7.1.3	N/A	N/A
			3.4.3.3
Climate change adaptation			3.3.3.1
		Intro 3.3	- TCFD

Activity Metric	Category	Unit of Measure	Code	France Offices	Italy Offices	Germany Offices
Number of assets, by property subsector	Quantitative	Number	IF-RE-000.A	99	84	22
Leasable floor area, by property subsector (including land plots)	Quantitative	m ²	IF-RE-000.A	1,046,232	916,575	369,638
Percentage of indirectly managed assets, by property subsector	Quantitative	% by floor area	IF-RE-000.C	84.2%	85.9%	0%
Average occupancy rate, by property subsector	Quantitative	%	IF-RE-000.C	94.1%	98.7%	86.4%

Activity Metric	German Residential	Hotels in Europe	Group
Number of assets, by property subsector	41,100 units	312	517 & 41,100 residential units
Leasable floor area, by property subsector (including land plots)	2,596,269	43,430 ⁽¹⁾ rooms	4,928,714 m ² & 43,430 rooms
Percentage of indirectly managed assets, by property subsector	0%	100%	N/A
Average occupancy rate, by property subsector	99.2%	100%	96.6%

⁽¹⁾ 53,000 rooms including hotels held in partnership.

3.7.6 Cross-reference table between Covivio's materiality matrix and GRI Standards

Responsible procurement	Purchasing practices/Environmental assessment/Human Rights/ Suppliers' employment practices	France Offices, France Corporate (Int Imp + Ext Imp) ⁽¹⁾	GRI 308-1 - Percentage of new suppliers that were screened using environmental criteria - see Chapter 3.4.2 GRI 414-1 - Percentage of new suppliers that were screened using social criteria - see Chapter 3.4.2
Biodiversity	Biodiversity	All portfolios (Int Imp + Ext Imp)	GRI 304-1 - Habitats protected or restored. GRI 304-2/GRI 304-3/GRI 304-4 - see Chapter 3.4.1.4
Climate change	Emissions	All portfolios (Int Imp + Ext Imp)	GRI 305-1 - Direct GHG emissions (Scope 1). GRI 305-2/GRI 305-5/GRI 305-7 - see GHG section of each activity, Chapter 3.7.1
Skills/Talent	Employment Training/education	Covivio ESU, Italy Offices, Covivio Immobilien (Int Imp)	GRI 404-1 - Average number of training hours per year, broken down by employee, gender and professional category. GRI 404-2/GRI 404-3 - see Chapter 3.7.2
Waste	Effluents and waste	All portfolios (Int Imp + Ext Imp)	GRI 306-2 - Total mass of waste by type and disposal method - see Waste data for each business provided in Chapter 3.7.1
Local development	Indirect economic impact	France Offices (Ext Imp)	GRI 203-1 - Development and impact of investments in infrastructure and support for services - see Chapter 3.4.1.2
Digital	Outside GRI Standards	All portfolios	Chapter 3.7.3
Diversity/Equality	Diversity and equal opportunity Equal remuneration for men and women Labour/management relations	Covivio ESU, Italy Offices, Covivio Immobilien (Int Imp)	GRI 401-1 - Total number and percentage of new employee hires and employee turnover by age group, gender and geographic area. GRI 401-3/ GRI 402-1/GRI 403-1/GRI 405-2 - see Chapter 3.7.2
Human Rights	Non-discrimination	Covivio ESU, Italy Offices, Covivio Immobilien (Int Imp + Ext Imp)	GRI 406-1 - Total number of incidents of discrimination and corrective actions taken - see Chapter 2.5.2.4 GRI 412-1/GRI 409-1/GRI 414-1
Water	Water	All portfolios (Int Imp + Ext Imp)	GRI 303-1 - Total water withdrawal by source. CRE2 - Water intensity of buildings in operation - see Water data for each business provided in Chapter 3.7.1
Energy	Energy	All portfolios (Int Imp + Ext Imp)	GRI 302-1 - Energy consumption within the organisation, CRE1 - see Energy data for each business provided in Chapter 3.7.1 GRI 302-3
Risk management	Consumer health and safety	All portfolios (Int Imp + Ext Imp)	GRI 416-2 - Total number of incidents of non-compliance with regulations and voluntary Codes concerning the health and safety impacts of products and services during their life cycle, by type of result - CRE5 - Land being or to be remediated to allow legal exploitation - see Chapter 3.3.3.3
Governance/Ethics	General information Ethics and integrity/Combating corruption/Compliance	Covivio (Int Imp)	GRI 102-18 - Governance structure of the organisation - see Chapter 3.6.1.1 GRI 205-2 - Communication and training on anti-corruption policies and procedures - see Chapter 3.6.2.1 GRI 102-16 - Organisation's values, principles, standards and norms of behaviour - see Chapter 3.6.2.2
Mobility	Outside GRI Standards	All portfolios	Chapter 3.4.1.5.2
New services	Outside GRI Standards	All portfolios	Chapter 3.3.1.2
Tenant partnership	Outside GRI Standards	All portfolios (Int Imp + Ext Imp)	Chapter 3.4.3.1
Philanthropy and sponsorship	Outside GRI Standards	All portfolios (Int Imp + Ext Imp)	Chapter 3.4.1.3.2
Health/Safety/ Comfort	Consumer health and safety	All portfolios (Int Imp + Ext Imp)	GRI 416-2 - Total number of incidents of non-compliance with regulations and voluntary Codes concerning the health and safety impacts of products and services during the life cycle, by type of outcome - see Chapter 3.3.3.3
Sustainable value	Outside GRI Standards	All portfolios (Int Imp + Ext Imp)	Chapter 3.2.2.2
Sustainable inclusive city	Indirect economic impact	All portfolios (Int Imp + Ext Imp)	GRI 203-1 - Development and impact of investments in infrastructure and support for services - see Chapter 3.4.1.2 CRE7 - Number of people voluntarily or involuntarily displaced and/or rehoused due to development, by project

⁽¹⁾ Int Imp = Internal Impact/Ext Imp = External Impact.

3.8 Independent third-party audit

3.8.1 Verification of corporate, environmental and societal information

Financial year ending 31 December 2023

Independent third party's report on consolidated non-financial statement presented in the management report

To the Shareholders 'Meeting,

In our capacity as an independent third party ("third party"), accredited by COFRAC (Accreditation COFRAC Inspection, no. 3-1681, scope available on www.cofrac.fr) and as a member of the network of one of the Statutory Auditors of your company (hereinafter "Entity"), we carried out work to prepare a report expressing a limited assurance conclusion on the compliance of the consolidated Statement of Non-Financial Performance for the financial year ended 31 December 2023 (hereinafter the "Statement") with Article R 225-105 of the French Commercial Code and on the fairness of the information provided (recorded or extrapolated) pursuant to Article R. 225-105 I 3 and II of the French Commercial Code (hereinafter the "Information") prepared in accordance with the Entity's procedures (hereinafter the "Guidelines"), presented in the management report pursuant to Articles L. 225-102-1, R. 225-105 and R. 225-105-1 of the French Commercial Code.

Conclusion

Based on the work done, as described in the "Nature and scope of work" section, and the information collected, we identified no material misstatement that would suggest the consolidated Statement of Non-Financial Performance fails to comply with the applicable regulations and that the Information, taken as a whole, is fairly presented in accordance with the Guidelines.

Preparation of the non-financial performance statement

The absence of a generally accepted and commonly used reference framework or established practices on which to evaluate and measure the Information allows the use of different but acceptable measurement techniques that may affect comparability between entities and over time.

Consequently, the Information must be read and understood with reference to the Guidelines, the significant elements of which are presented in the Statement and available on request at the Entity's head office.

Limitations inherent in the preparation of the Information

The Information may be subject to an uncertainty inherent to the state of scientific or economic knowledge and the quality of the external data used. Certain information is sensitive to the methodological choices, assumptions and/or estimates used to prepare it and presented in the Statement.

The Entity's responsibility

It is the management's responsibility to:

―	select or establish appropriate criteria for the preparation of the Information;
―	prepare a Statement in accordance with law and regulations, including a presentation of the business model, a description of the main non-financial risks, a presentation of the policies applied with regard to these risks and the results of these policies, including key performance indicators and the information required by Article 8 of Regulation (EU) 2020/852 (green taxonomy);
―	prepare the Statement in accordance with the Entity's Guidelines as mentioned above;
―	and to put in place the internal control that it deems necessary to prepare information that is free from material misstatement, whether due to fraud or error.

The statement was prepared by the Board of Directors

Responsibility of the independent third party

On the basis of our work, our responsibility is to provide a report expressing a limited assurance conclusion on:

―	the compliance of the Statement with the requirements of Article R. 225-105 of the French Commercial Code;
―	the fairness of the information provided (recorded or extrapolated) in accordance with Article R. 225-105, I, 3° and II of the French Commercial Code, i.e., the outcomes, including key performance indicators, and the measures implemented considering the principal risks.

As we are responsible for making an independent conclusion on the Information as prepared by management, we are not authorised to be involved in the preparation of such Information as this could compromise our independence.

It is not our responsibility to comment on:

―	the Entity's compliance with other applicable legal and regulatory provisions (in particular in terms of information referred to in Article 8 of Regulation (EU) 2020/852 (green taxonomy), the vigilance and anti-corruption plan and tax evasion);
―	the fairness of the information referred to in Article 8 of Regulation (EU) 2020/852 (green taxonomy);
―	Compliance of products and services with applicable regulations.

Regulatory provisions and applicable professional doctrine

Our work described below was carried out in accordance with the provisions of Articles A. 225-1 et seq. of the French Commercial Code, with our own verification procedures (programme for verifying the Statement of Non-Financial Performance, of 7 July 2023) and the relevant professional doctrine of the Compagnie Nationale des Commissaires aux Comptes, including the technical opinion of the Compagnie Nationale des Commissaires aux Comptes, Intervention of the Statutory Auditor - Intervention of the independent third party - Statement of Non-Financial Performance, and international standard ISAE 3000 ⁽⁽¹⁾⁾ (revised).

⁽¹⁾ ISAE 3000 (revised) - Assurance engagements other than audits or reviews of historical financial information.

Independence and quality control

Our independence is defined by the requirements of Article L. 821-28 of the French Commercial Code and the French Code of Ethics (Code de déontologie) of our profession. In addition, we have implemented a system of quality control including documented policies and procedures regarding compliance with applicable legal and regulatory requirements, the ethical requirements and French professional guidance.

Means and resources

Our verification work mobilised the skills of five people and took place between October 2023 and March 2024, over a total duration of intervention of about eleven weeks.

To assist us in performing our work, we called on our experts in sustainable development and societal responsibility. We conducted five interviews with the people responsible for preparing the Statement, representing in particular the Sustainable Development and Human Resources Departments.

Nature and scope of work

We have planned and carried out our work taking into account the risk of material misstatement of the Information.

We believe that work we have done, exercising our professional judgement, allow us to arrive at a limited assurance conclusion;

―

we obtained an understanding of all the entities within the scope of consolidation and of the principal risks to which they are exposed;

―

we assessed the suitability of the criteria of the Guidelines with respect to their relevance, completeness, reliability, neutrality and understandability, with due consideration of industry best practices, where appropriate;

―

we verified that the Statement covers each category of information provided for in Article L. 225-102-1 III of the French Commercial Code with regard to social and environmental matters as well as respect for human rights and the fight against corruption and tax evasion and, where applicable, includes an explanation for the absence of any information required by Article L. 225-102-1 III, paragraph 2 of the French Commercial Code;

―

we verified that the Statement presents the information required by Article R. 225-105 II of the French Commercial Code where relevant to the principal risks;

―

we verified that the Statement presents the business model and a description of principal risks associated with all the consolidated entities' activities, including where relevant and proportionate, the risks associated with their business relationships, their products or services, as well as their policies, measures and the outcomes thereof, including key performance indicators associated to the principal risks;

―

we referred to documentary sources and conducted interviews to:

―

assess the process used to identify and confirm the principal risks as well as the consistency of the outcomes, including the key performance indicators used, with respect to the principal risks and the policies presented;

―

corroborate the qualitative information (measures and outcomes) that we considered to be the most important presented in Appendix 1. For certain risks (security/environmental safety/regulatory compliance, responsible supply chain, skills/attractiveness/ diversity) our work was carried out at the level of the consolidating entity. For the other risks, work was carried out at both the consolidating entity and at a selection of entities listed below: Italy Offices;

―

we verified that the Statement covers the scope of consolidation, i.e. all the consolidated entities in accordance with article L. 233-16 of the French Commercial Code;

―

we obtained an understanding of internal control and risk management procedures the Entity has put in place and assessed the data collection process to ensure the completeness and fairness of the Information;

―

for the key performance indicators and other quantitative outcomes that we considered to be the most important presented in Appendix 1, we implemented:

―

―

analytical procedures to verify the proper consolidation of the data collected and the consistency of any variations in those data;

―

detailed tests on the basis of sampling or other means of selection, consisting of verifying the correct application of definitions and procedures and reconciling the data with the supporting documents. This work was carried out on a selection of the contributing entities listed above and covers between 10% and 100% of the consolidated data selected for these tests (10% of the workforce, 13% of the floor space, 15% of book value Group share, 100% of energy performance diagnostics done);

―

we assessed the overall consistency of the Statement based on our knowledge of all the consolidated entities.

The procedures implemented as part of a moderate assurance engagement are less extensive than those required for a reasonable assurance engagement performed according to professional doctrine; a higher level of assurance would have required more extensive verification work.

Paris-La Défense, 18 March 2024

The independent third party EY & Associés

Philippe Aubain, Partner, Sustainable Development

Appendix 1: The most important information

Social Information

Quantitative information

(including key performance indicators)

Total workforce

Percentage of employees on permanent contracts

Percentage of employees trained

Average number of training hours per employee trained

Employee turnover

Number of internal mobilities

Percentage of employees receiving an annual performance and development review

Ratio of basic salary and remuneration of women to men

Qualitative Information (actions or results)

Recruitment measures implemented

Measures implemented to ensure the development of employees' skills

Measures implemented for career management

Measures implemented to attract and retain talent

Covivio's commitments to diversity and equal pay

Measures implemented for the health, safety and professional balance of employees

Environmental Information

Quantitative information

(including key performance indicators)

Certification rate of assets (France Core Offices, Italy Offices, German Offices, German Residential, Hotels Europe)

Energy intensity (kWhfe/m2/year and kWhpe/m2/year) of the real estate portfolio

Carbon intensity (kgCO ₂ /m ² /year) of the real estate portfolio:

―

Scope 1

―

Scope 2 (market-based)

―

Scope 3 including:

―	emissions from the energy consumption of tenant areas of multi-tenant offices, single-tenant offices, hotels and residential in Germany;
―	upstream emissions associated with energy consumption.

Water intensity (m3/m ² /year) of the portfolio

Percentage of sites benefiting from selective collection

Total amount of waste

Percentage of sites monitored for health and environmental risks

Rate of energy performance diagnostics carried out (France Offices, Italy Offices, German Offices, German Residential, Hotels)

Qualitative Information (actions or results)

Management of health and environmental risks and regulatory compliance

Measures taken to exceed construction standards and combat asset obsolescence

Results of asset certification measures

The carbon trajectory developed for Covivio's activities, in line with the 1.5 and 2°C targets and validated by the Science Based Targets initiative

Societal Information

Quantitative information

(including key performance indicators)

Accessibility of public transport

Rate of accessibility of office buildings to people with reduced mobility (PRM)

The number of suppliers evaluated by Ecovadis

The average score of the evaluated suppliers

Number of solicitations of ethics officers

Qualitative information

(actions or results)

Measures to guarantee the sustainability of the supply chain

Relations and cooperation with stakeholders, in particular customers

Measures taken to protect personal and real estate data

Partnerships implemented to integrate Covivio into the sustainable city

Measures taken to promote the accessibility of buildings

3.8.2 Independent third party verification - Green Bonds Covivio

Independent report of one of the Statutory Auditors on compliance with environmental and social criteria for selection and monitoring of assets eligible, and on the value of the selected asset portfolio

To the Chief Executive Officer,

In our capacity as Statutory Auditor of Covivio (hereinafter "the Company") and in response to your request, we present our report on the compliance of the assets selected for the sustainable bonds (hereinafter the" Green Bonds") with the environmental and social criteria for selection and monitoring defined in the Green Bonds "Use of Proceeds" criteria published in May 2022 (hereinafter the "Sustainable Bond Framework" ⁽¹⁾ ) and the consistency of the value of these assets with the accounting records and underlying data.

Preparation of information by the company

As there is no common reporting framework or established set of practices for assessing and measuring sustainability information, a range of measurement techniques are acceptable, which can make it difficult to compare entities over time.

Therefore, information should be read and understood with due regard to the Sustainable Bond Framework available on the Company's website or on request.

Responsibility of the company

It is the responsibility of the company's Chief Executive Officer to establish the qualification and monitoring criteria defined in the Sustainable Bond Framework, to ensure that they are applied and to implement the internal control procedures that it deems necessary to establish information that is free from material misstatement, whether due to fraud or error.

Independence and quality control

Our independence is defined by regulatory requirements and the Code of Ethics of our profession and the conditions laid down by Article L. 821-28 of the French Commercial Code.

In addition, we apply the International Standard on Quality Management 1 which involves defining and implementing a quality control system including documented policies and procedures to ensure compliance with ethical rules, professional standards and applicable law and regulations.

Responsibility of the Statutory Auditor

It is our role, based on our work to:

―	express a limited assurance conclusion that the assets selected for the Green Bonds have been prepared, in all material respects, in accordance with the qualification and monitoring criteria defined in the "Sustainable Bond Framework";
―	attest to the consistency of the accounts with the value of the portfolio of selected assets.

It is not our responsibility to assess the alignment of the company's Sustainable Bond Framework with the Green Bond Principles of the ICMA (International Capital Market Association).

We conducted our work in accordance with ISAE 3000 (revised) - Assurance engagements other than audits or reviews of historical financial information published by the IAASB (International Auditing and Assurance Standards Board).

We called, to assist us in performing our work, on our experts in sustainable development, under the responsibility of Mr Philippe Aubain, Partner.

1. Limited assurance report on compliance with environmental and social criteria for selection and monitoring

Nature and scope of work

We have planned and carried out our work taking into account the risk of material misstatement that would call into question the fact that the assets selected for the Sustainable Bonds were prepared, in all material respects, in accordance with the selection and monitoring criteria in the "Sustainable Bond Framework". Based on our professional judgement, we implemented the following procedures:

―	We obtained an understanding of the procedures for qualifying and monitoring the assets selected for the Green Bonds in your company, and
―	We assessed the compliance of the most significant assets with selection and monitoring criteria by interviewing the appropriate people in the company and/or by observing audit evidence.

The procedures performed for a limited assurance engagement are less extensive than those required for a reasonable assurance engagement. As a result, the level of assurance obtained from a limited assurance engagement is substantially lower than that which would have been obtained if a reasonable assurance engagement had been performed.

⁽¹⁾ May 2022 "Sustainable Bond Framework" press release on selection (Use of Proceeds) and monitoring (Reporting) criteria for Green Bonds: https:// www.covivio.eu/wp-content/uploads/sites/6/2023/08/Covivio-Sustainable-Bond-Framework.pdf

Information or explanations on the Selection and Monitoring Criteria

―

The Selection and Monitoring Criteria only cover environmental and social aspects of eligible assets and exclude their economic aspects. These Criteria are the minimum requirements to be met by eligible assets in order to be considered as "Green Bonds". They are related to construction and operating phases and the monitoring of assets. The company also publishes the confirmation of compliance with each criterion for the selected assets.

―

Some of these criteria only apply and can only be verified once environmental annexes have been put in place with the tenants, a process that is under way for all assets related to the Green Bonds.

Conclusion

Based on the procedures we implemented, as described in the "Nature and scope of the work" section, and the information we collected, we identified no material misstatements that would call into question the fact that the assets for the Green Bonds were selected, in all material respects, in accordance with the selection and monitoring criteria defined in the "Sustainable Bond Framework".

2. Statement on the value of the selected portfolio assets

In our capacity as statutory auditor, we conducted jointly with Mazars, an audit of the consolidated financial statements of the company for the fiscal year ended 31 December 2023. Our audit, conducted in accordance with the professional standards applicable in France, aimed at expressing an opinion on the consolidated financial statements considered globally and not on specific elements of these statements used to establish this information. Therefore, we did not perform any audit tests or sampling to this purpose and we do not express any opinion on these isolated elements.

Our intervention, which is neither an audit nor a limited review, was performed in accordance with the relevant professional doctrine of the Compagnie Nationale des Commissaires aux Comptes. Our work consisted, by sampling or other selection methods, in:

―	obtaining an understanding of the procedures put in place by the company to determine the value of the portfolio of selected assets net of the matched external financial debt (Group share) on the basis of the information at 31 December 2023 (appraisal values and work budgets for the development portfolio);
―	verifying that the value of the assets selected is consistent with the data underlying the consolidated financial statements for the fiscal year ended 31 December 2023;
―	verifying that the external financial debt backing the selected assets is consistent with the data underlying the consolidated financial statements for the fiscal year ended 31 December 2023 (capital remaining due at 31 December 2023 on the external financial debt backing the asset portfolios, allocated to the selected assets on the basis of the LTV ratio of the corresponding portfolio);
―	reconciling the Group's share of ownership, used to calculate the Group's share of the total value of the portfolio of selected assets net of the matched external debt with the data underlying the consolidated financial statements for the fiscal year ended 31 December 2023;
―	verifying that the total value of the portfolio of selected assets net of the matched external financial debt (Group share) is €5.3 billion.

Based on our work, we have nothing to report with regard to the allocation of funds to the selected assets or to the consistency of the amount of funds allocated to these eligible assets with the accounting records and underlying data.

Paris-La Défense, 18 March 2024

One of the Statutory Auditors
ERNST & YOUNG et Autres

Anne Herbein, Partner

3.8.3 Independent third-party verification - Green Bonds Covivio Hotels

Independent report of one of the Statutory Auditors on compliance with environmental and social criteria for selection and monitoring of assets eligible, and on the value of the selected asset portfolio.

To the Manager,

In our capacity as Statutory Auditor of Covivio Hotels (hereinafter "the Company") and in response to your request, we present our report on the compliance of the assets selected for the responsible obligations (hereinafter the "Green Financing Bonds") with the environmental and social criteria for selection and monitoring defined in the Green Financing Bonds "Use of Proceeds" criteria published in June 2023 (hereinafter the "Green Financing Framework" ⁽¹⁾ ) and the consistency of the value of these assets with the accounting records and underlying data.

Preparation of information by the company

As there is no common reporting framework or established set of practices for assessing and measuring sustainability information, a range of measurement techniques are acceptable, which can make it difficult to compare entities over time.

Therefore, information should be read and understood with due regard to the Green Financing Framework available on the Company's website or on request.

Responsibility of the company

It is the responsibility of the company's Chief Executive Officer to establish the selection and monitoring criteria defined in the Green Financing Framework, to ensure that they are applied and to implement the internal control procedures that it deems necessary to establish information that is free from material misstatement, whether due to fraud or error.

Independence and quality control

Our independence is defined by regulatory requirements and the Code of Ethics of our profession and the conditions laid down by Article L. 821-28 of the French Commercial Code.

In addition, we apply the International Standard on Quality Management 1 which involves defining and implementing a quality control system including documented policies and procedures to ensure compliance with ethical rules, professional standards and applicable law and regulations.

Responsibility of the Statutory Auditor

It is our role, based on our work to:

―	express a limited assurance conclusion that the assets selected for the Green Financing Bonds have been prepared, in all material respects, in accordance with the qualification and monitoring criteria defined in the "Green Financing Framework";
―	attest to the consistency of the accounts with the value of the portfolio of selected assets.

It is not our responsibility to assess the alignment of the company's Green Financing Framework with Green Bond Principles of the ICMA (International Capital Market Association).

We conducted our work in accordance with ISAE 3000 (revised) - Assurance engagements other than audits or reviews of historical financial information published by the IAASB (International Auditing and Assurance Standards Board).

We called, to assist us in performing our work, on our experts in sustainable development, under the responsibility of Mr Philippe Aubain, Partner.

1. Limited assurance report on compliance with environmental and social criteria for selection and monitoring

Nature and scope of work

We have planned and carried out our work taking into account the risk of material misstatement that would call into question the fact that the assets selected for the Green Financing Bonds were prepared, in all material respects, in accordance with the selection and monitoring criteria in the "Green Financing Framework". Based on our professional judgement, we implemented the following procedures:

―	we obtained an understanding of the procedures for qualifying and monitoring the assets selected for the Green Financing Bonds in your company; and
―	we assessed the compliance of the most significant assets with selection and monitoring criteria by interviewing the appropriate people in the company and/or by observing audit evidence.

The procedures performed for a limited assurance engagement are less extensive than those required for a reasonable assurance engagement. As a result, the level of assurance obtained from a limited assurance engagement is substantially lower than that which would have been obtained if a reasonable assurance engagement had been performed.

⁽¹⁾ June 2023 "Green Financing Framework" press release on selection (Use of Proceeds) and monitoring (Reporting) criteria for Green Financing Bonds: https://www.covivio-hotels.fr/wp-content/uploads/sites/8/2023/10/Green-Financing-Framework.pdf

Information or explanations on the Selection and Monitoring Criteria

―

the Selection and Monitoring Criteria only cover environmental and social aspects of eligible assets and exclude their economic aspects. These Criteria are the minimum requirements to be met by eligible assets in order to be considered as "Green Bonds". They are related to construction and operating phases and the monitoring of assets. The company also publishes the confirmation of compliance with each criterion for the selected assets.

―

some of these criteria only apply and can only be verified once environmental annexes have been put in place with the tenants, a process that is under way for all assets related to the Green Financing Bonds.

Conclusion

Based on the procedures we implemented, as described in the "Nature and scope of the work" section, and the information we collected, we identified no material misstatements that would call into question the fact that the assets for the Green Financing Bonds were selected, in all material respects, in accordance with the selection and monitoring criteria defined in the "Green Financing Framework".

2. Statement on the value of the selected portfolio assets

In our capacity as statutory auditor, we conducted jointly with Mazars, an audit of the consolidated financial statements of the company for the fiscal year ended 31 December 2023. Our audit, conducted in accordance with the professional standards applicable in France, aimed at expressing an opinion on the consolidated financial statements considered globally and not on specific elements of these statements used to establish this information. Therefore, we did not perform any audit tests or sampling to this purpose and we do not express any opinion on these isolated elements.

Our intervention, which is neither an audit nor a limited review, was performed in accordance with the relevant professional doctrine of the Compagnie Nationale des Commissaires aux Comptes. Our work consisted, by sampling or other selection methods, in:

―	obtaining an understanding of the procedures put in place by the company to determine the value of the portfolio of selected assets net of the matched external financial debt (Group share) on the basis of the information at 31 December 2023;
―	verifying that the value of the assets selected is consistent with the data underlying the consolidated financial statements for the fiscal year ended 31 December 2023;
―	verifying that the external financial debt backing the selected assets is consistent with the data underlying the consolidated financial statements for the fiscal year ended 31 December 2023 (capital remaining due at 31 December 2023 on the external financial debt backing the asset portfolios, allocated to the selected assets on the basis of the LTV ratio of the corresponding portfolio);
―	reconciling the Group's share of ownership, used to calculate the Group's share of the total value of the portfolio of selected assets net of the matched external debt with the data underlying the consolidated financial statements for the fiscal year ended 31 December 2023;
―	verify that the total value of the portfolio of selected assets net of the matched external financial debt (Group share) is €2.9 billion at 31 December 2023.

Based on our work, we have nothing to report with regard to the allocation of funds to the selected assets or to the consistency of the amount of funds allocated to these eligible assets with the accounting records and underlying data.

Paris-La Défense, 18 March 2024

One of the Statutory Auditors
ERNST & YOUNG et Autres

Pierre Lejeune

Partner

Appendices

Covivio expresses its Purpose

For more than 20 years, Covivio has been helping to shape major European cities, designing offices, hotels and housing for its customers. By adopting its new identity in 2018, Covivio stated its ambition to get even closer to its end users and create living spaces for them to work, travel and live. Today, the Board of Directors and the Covivio teams have decided to go further and express how we intend to contribute, by involving all our stakeholders, to the main social, environmental and economic issues. In this way, we have defined our Purpose...

Build sustainable relationships and well-being

By offering a high level of well-being in each of our buildings, Covivio enriches relationships between people and thus contributes to the fulfilment of each individual, the effectiveness of organisations and the sustainability of development methods. Our Purpose places the human being at the heart of the city, makes our activities a long-term commitment and constitutes the backbone of our development. It encourages us to make concrete and ambitious commitments to all our stakeholders.

For our clients, we provide places and services that facilitate and enhance exchanges and ensure well-being and comfort: quality of locations, proximity to public transport, air quality, acoustic and thermal comfort, natural light, green spaces, diversity and flexibility of uses, "just-like-home" hotel concepts, so many assets to support the users of our spaces as they live their lives, to connect them to one another, to increase their opportunities for relationships and exchange, and to allow them to show their full potential.

To our shareholders and financial partners, we ensure the long-term solidity of our business model, which articulates the roles of investor, developer, manager and creator of services, throughout a value-creation chain. They can count on our demanding standards in the areas of transparency and reporting.

With our suppliers and consultants, we build quality, sustainable and balanced relationships, based on trust and respect for commitments. Working with us means sharing our Purpose and contributing to achieving our ambitions.

For our teams, well-being at work and rich professional relationships are the foundation of our employer brand. Concerned about the development of talents, and in addition to our actions in favour of gender equality, the retention of older employees and the quality of life at work, we work together with our employees to build their career paths and the development of their skills.

Working alongside local authorities, we contribute to the attractiveness of the regions. We promote the emergence of eco-responsible practices and innovations in terms of urban quality of life, openness of buildings to the city, development of biodiversity, waste management, etc. We thus contribute to the challenges of the city of tomorrow, less energy-intensive; a connected city, concerned about social well-being, environmental quality, placing people at the centre of its ecosystem.

For future generations and our planet, because the well-being and quality of relationships are inseparable from the preservation of our environment, we place our real-estate and service footprint in the framework of the United Nations Sustainable Development Goals (SDGs) via ambitious, precise and public commitments. Because individual and collective well-being can only develop sustainably in a society where all social bodies harmoniously coexist, we are working to help reduce the inequalities that cause imbalances and fragilities.

To do this, we make the following commitments

To improve our impact on the environment

―	From 2020, all our new development projects will have green areas (terraces, patios, roof tops, urban agriculture, etc.).
―	In 2025, 100% of our portfolio will be "green" (certification or labelling for buildings or operations).
―	By 2030, we aim at reducing our carbon emissions by 34% compared to 2010.

To maximise the well-being of our customers and our teams

―	From 2020, all our new projects will target well-being accreditation.
―	Any customer request will be dealt with in less than 24 hours; satisfaction will be regularly measured and reflected in our teams' remuneration.
―	In 2025, 95% of our portfolio will be located within a ten-minute walk of public transport.
―	In the same year, all our office developments will benefit from a high level of connectivity.
―	And all our multi-tenant office buildings will offer a broad range of services accessible by means of a mobile application.
―	Every two years, our teams' well-being will be measured. We will inform them of the results and, together with them, we will address the points for improvement put forward.

To reinforce our societal commitments

―	In 2020, Covivio will set up a foundation which will group together all our actions in favour of equal opportunity and environmental protection.
―	In order for our teams to contribute to our commitments, Covivio employees will be able to dedicate a solidarity day each year to support a societal project identified by the Foundation.

In 2020, in order to monitor these commitments associated with our Purpose, to challenge and renew them, Covivio will create a Stakeholders Committee, which will bring together clients, suppliers and partners, team representatives, shareholders, local authorities, urban planners, sociologists, etc. Each year, this Committee will make public the conclusions of its work on the monitoring of our objectives related to Covivio's Purpose, and its proposals for new commitments.

4 Financial information

4.1 Consolidated financial statements as at 31 December 2023

4.1.1 Statement of financial position

Assets

(In € thousand)	Note 4.2.5	31/12/2023	31/12/2022
Intangible assets	1.2
Goodwill		117,356	120,102
Other intangible fixed assets		19,249	17,194
Tangible assets	1.2
Operating properties		1,468,098	1,471,533
Other tangible fixed assets		39,978	40,332
Fixed assets in progress		85,363	68,470
Investment properties	1.3	20,186,471	22,964,769
Non-current financial assets	2.2	117,782	113,872
Investments in companies accounted for under the equity method	3.2	374,918	401,058
Deferred tax assets	4	72,315	86,378
Long-term derivative instruments	11.4	360,430	663,944
Total non-current assets		22,841,961	25,947,653
Assets held for sale	1.3	326,649	259,400
Loans and receivables	5	40,589	41,371
Inventories and work-in-progress	6.2	307,526	264,032
Short-term derivative instruments	11.4	161,652	149,332
Trade receivables	7	322,956	344,714
Tax receivables		29,476	28,342
Other receivables	8	88,395	160,137
Prepaid expenses		6,337	4,447
Cash and cash equivalents	9	900,619	461,541
Total current assets		2,184,198	1,713,316
TOTAL ASSETS		25,026,159	27,660,969

Liabilities

(In € thousand)	Note 4.2.5	31/12/2023	31/12/2022
Capital		303,019	284,358
Share premium account		4,311,423	4,053,017
Treasury shares		-29,791	-42,873
Consolidated reserves		4,791,151	4,527,814
Net income		-1,418,785	620,694
Total shareholders' equity, Group Share	10	7,957,017	9,443,010
Non-controlling interests		4,006,151	4,648,499
Total shareholders' equity		11,963,167	14,091,509
Long-term borrowings	11.2	9,324,322	9,734,862
Long-term rental liabilities	11.5	305,044	298,206
Long-term derivative instruments	11.4	116,305	221,640
Deferred tax liabilities	4	1,053,540	1,320,034
Staff termination benefits	12.2	35,442	38,075
Other long-term liabilities		35,547	35,492
Total non-current assets		10,870,200	11,648,309
Liabilities held for sale		6,644	-
Trade payables		188,461	146,847
Trade payables on fixed assets		39,310	67,402
Short-term borrowings	11.2	1,382,845	1,232,805
Short-term rental liabilities	11.5	9,027	8,882
Short-term derivative instruments	11.4	68,800	78,760
Security deposits		1,448	817
Advanced and pre-payments received		246,913	196,641
Short-term provisions	12.2	11,035	17,767
Current taxes		67,383	33,903
Other short-term liabilities	13	118,002	117,464
Pre-booked income		52,926	19,863
Total current liabilities		2,192,792	1,921,151
TOTAL LIABILITIES		25,026,159	27,660,969

4.1.2 Statement of net income

(In € thousand)	Note 4.2	31/12/2023	31/12/2022
Rental income	6.2.1	935,005	905,981
Unrecovered property operating costs	6.2.2	-37,350	-40,124
Expenses on properties	6.2.2	-30,786	-29,133
Net losses on unrecoverable receivables	6.2.2	-3,391	5,616
Net rental income		863,478	842,340
EBITDA from hotel operating activity & Flex Office	6.2.3	91,342	74,929
Income from other activities	6.2.3	8,503	20,310
Management and administration income		19,087	16,071
Business expenses		-7,443	-7,649
Overheads		-131,051	-129,654
Net operating costs	6.2.4	-119,406	-121,232
Depreciation of operating assets	6.2.5	-73,592	-58,932
Net change in provisions and other	6.2.5	24,980	12,567
OPERATING INCOME		795,305	769,983
Net income from inventory properties		-125	-2,361
Income from asset disposals	6.3	-37,862	-491
Income from value adjustments	6.4	-2,437,342	18,205
Income from disposal of securities	6.5	-933	24,876
Net income from changes in scope	6.6	-4,195	-432
OPERATING RESULT		-1,685,151	809,780
Cost of the net financial debt	6.7	-165,599	-139,702
Interest cost for rental liabilities	5.11.5	-15,941	-15,812
Value adjustment on derivatives	6.8	-207,671	582,604
Discounting and foreign exchange gains or losses	6.8	352	-589
Exceptional amortisation of loan issue costs	6.8	-1,776	-1,453
Share of income from companies accounted for under the equity method	5.3.2	-34,364	51,001
NET INCOME BEFORE TAX		-2,110,150	1,285,830
Deferred taxes	6.9.2	253,826	-113,991
Corporate taxes	6.9.2	-46,541	-23,938
NET INCOME FOR THE PERIOD FROM CONTINUING OPERATIONS		-1,902,865	1,147,901
Profit or loss after tax on discontinued operations		-	-
NET INCOME FROM DISCONTINUED OPERATIONS		-	-
NET INCOME FOR THE PERIOD		-1,902,865	1,147,901
of which attributable to non-controlling interests		-484,080	527,207
NET INCOME FOR THE PERIOD - GROUP SHARE		-1,418,785	620,694
Group net earnings per share (in €)	7.2	-14.55	6.61
Group diluted net earnings per share (in €)	7.2	-14.46	6.57

4.1.3 Statement of comprehensive income

(In € thousand)	31/12/2023	31/12/2022
NET INCOME FOR THE PERIOD	-1,902,865	1,147,901
Currency translation differences	5,775	-5,885
Of which effective portion of gains or losses on hedging instruments	-8,516	20,441
Deferred tax on recyclable items	869	-1,617
Other comprehensive income that can be reclassified to profit or loss	-1,872	12,939
Actuarial differences on employee benefits	1,247	13,395
Change in value of operating assets	-	-
Deferred tax on non-recyclable items	-877	-4,215
Other comprehensive income that cannot be reclassified to profit or loss	370	9,180
Other items of comprehensive income	-1,502	22,119
COMPREHENSIVE INCOME FOR THE PERIOD	-1,904,367	1,170,020
of which attributable to owners of the parent company	-1,419,494	632,623
of which attributable to non-controlling interests	-484,873	537,397

4.1.4 Statement of changes in equity

(In € thousand)	Capital	Share premium	Treasury shares	Reserves and retained earnings	Gains and losses recognised directly in shareholders' equity	Total shareholders' equity, Group Share
Position at 31 December 2021	283,946	4,119,793	-21,304	4,818,896	-7,521	9,193,810
Dividends distribution	-	-66,352	-	-286,983	-	-353,335
Capital increase	412	-431	-	19	-	-
Allocation to the legal reserve	-	-	-	-	-	-
Other	-	7	-21,569	-16,887	-	-38,449
Total comprehensive income for the period	-	-	-	620,694	11,929	632,623
Of which actuarial gains and losses on pension provision net of deferred tax liabilities	-	-	-	-	5,704	5,704
Of which currency transaction gains and losses	-	-	-	-	-2,583	-2,583
Of which effective portion of gains or losses on hedging instruments net of deferred tax liabilities	-	-	-	-	8,808	8,808
Of which net income (loss)	-	-	-	620,694	-	620,694
Variation in scope and exchange rates	-	-	-	1,591	-	1,591
Shared-based payments	-	-	-	6,770	-	6,770
Position at 31 December 2022	284,358	4,053,017	-42,873	5,144,100	4,408	9,443,010
Dividends distribution	-	-6	-	-351,890	-	-351,896
Capital increase	18,661	260,278	-	-	-	278,939
Allocation to the legal reserve	-	-1,866	-	1,866	-	-
Other	-	-	13,082	-14,174	-	-1,092
Total comprehensive income for the period	-	-	-	-1,418,785	-709	-1,419,494
Of which actuarial gains and losses on pension provision net of deferred tax liabilities	-	-	-	-	232	232
Of which currency transaction gains and losses	-	-	-	-	2,533	2,533
Of which effective portion of gains or losses on hedging instruments net of deferred tax liabilities	-	-	-	-	-3,474	-3,474
Of which net income (loss)	-	-	-	-1,418,785	-	-1,418,785
Variation in scope and exchange rates	-	-	-	-6	-	-6
Shared-based payments	-	-	-	7,556	-	7,556
POSITION AT 31 DECEMBER 2023	303,019	4,311,423	-29,791	3,368,667	3,699	7,957,017

(In € thousand)	Noncontrolling interests	Total shareholders' equity
Position at 31 December 2021	4,428,828	13,622,638
Dividends distribution	-183,500	-536,835
Capital increase	8,109	8,109
Allocation to the legal reserve	-	-
Other	-15	-38,464
Total comprehensive income for the period	537,397	1,170,020
Of which actuarial gains and losses on pension provision net of deferred tax liabilities	3,476	9,180
Of which currency transaction gains and losses	-3,302	-5,885
Of which effective portion of gains or losses on hedging instruments net of deferred tax liabilities	10,016	18,824
Of which net income (loss)	527,207	1,147,901
Variation in scope and exchange rates	-142,320	-140,729
Shared-based payments		6,770
Position at 31 December 2022	4,648,499	14,091,509
Dividends distribution	-183,990	-535,886
Capital increase	26,598	305,537
Allocation to the legal reserve	-	-
Other	131	-961
Total comprehensive income for the period	-484,873	-1,904,367
Of which actuarial gains and losses on pension provision net of deferred tax liabilities	138	370
Of which currency transaction gains and losses	3,242	5,775
Of which effective portion of gains or losses on hedging instruments net of deferred tax liabilities	-4,173	-7,647
Of which net income (loss)	-484,080	-1,902,865
Variation in scope and exchange rates	-214	-220
Shared-based payments	-	7,556
POSITION AT 31 DECEMBER 2023	4,006,150	11,963,167

4.1.5 Statement of cash flows

(In € thousand)	Note	31/12/2023	31/12/2022
Net income for the period		-1,902,865	1,147,901
Amortisation, depreciation and provision charges (excluding those related to current assets)	4.2.6.2.5	69,556	62,272
Unrealised gains and losses relating to changes in fair value	4.2.5.11.4 & 4.2.6.4	2,645,012	-600,808
Calculated income and expenses related to share-based payments		7,815	5,920
Other calculated income and expenses		-7,403	-21,299
Gains or losses on disposals		40,389	-24,078
Share of income from companies accounted for under the equity method		34,364	-51,001
Dividends (non-consolidated securities)		-159	-
Cash flow after tax and cost of net financial debt		886,709	518,908
Cost of net financial debt and interest charges on rental liabilities	4.2.6.7 & 4.2.6.8	166,384	143,798
Income tax expense (including deferred taxes)	4.2.6.9.2	-207,285	137,929
Cash flow before tax and cost of net financial debt		845,808	800,635
Taxes paid		-14,118	-19,632
Change in working capital requirements on continuing operations (including employee benefits liabilities)	4.2.5.7.2	193,460	-82,942
Net cash flow from operating activities		1,025,150	698,061
Impact of changes in the scope	4.2.6.6	676	182,541
Acquisitions of tangible and intangible fixed assets	4.2.5.1.2	-484,492	-567,834
Disposals of tangible and intangible fixed assets	4.2.5.1.2	627,244	687,340
Acquisitions of financial assets (non-consolidated securities)		-208	-300
Disposals of financial assets (non-consolidated shares)		24	293
Dividends received (companies accounted for under the equity method, non-consolidated securities)		17,298	7,560
Change in loans and advances granted		9,255	13,651
Other cash flow from investment activities		1,214	-2
Net cash flow from investing activities		171,012	323,250
Impact of changes in the scope		-1,561	-132
Amounts received from shareholders in connection with capital increases:		-	-
Paid by parent company shareholders		-	-
Paid by minority shareholders of consolidated companies	4.1.4	26,598	8,109
Acquisitions and disposals of treasury shares	4.1.4	-1,160	-38,449
Dividends paid during the reporting period:		-	-
Dividends paid to parent company shareholders	4.1.4	-72,957	-353,335
Dividends paid to non-controlling interests of consolidated companies	4.1.4	-183,990	-183,500
Proceeds related to new borrowings	4.2.5.11.2	1,416,295	1,442,104
Loan repayments (including debts on lease liabilities)	4.2.5.11.2	-1,691,803	-2,356,649
Net financial interest paid (including interest on lease liabilities)		-169,492	-144,870
Other cash flow from financing activities		-44,845	-29,094
Net cash flow from financing activities		-722,914	-1,655,817
Impact of changes in the exchange rate		934	-920
CHANGE IN NET CASH		474,182	-635,427
Opening cash position		425,364	1,060,791
Closing cash position		899,546	425,364
NET CHANGE IN CASH FLOW		474,182	-635,427

4 .2 Notes to the consolidated financial statements

4.2.1 General principles

4.2.1.1 Accounting standards

The consolidated financial statements of the Covivio group at 31 December 2023 were prepared in accordance with the international accounting standards and interpretations issued by the International Accounting Standards Board (IASB) and adopted by the European Union as of the preparation date. These standards include the IFRS (International Financial Reporting Standards) and IAS (International Accounting Standards) as well as their interpretations.

The financial statements were approved by the Board of Directors on 15 February 2024.

Accounting principles and methods used

The accounting principles applied for the consolidated financial statements as at 31 December 2023 are identical to those used for the consolidated financial statements as at 31 December 2022, except for new standards and amendments whose application was mandatory on or after 1 January 2023 and which were not applied early by the Group.

The following amendments, which are mandatory as of 1 January 2023, did not have any impact on the Group's consolidated financial statements:

―	IFRS 17 and "Insurance contracts" amendments, adopted on 19 November 2021; IFRS 17 lays out the principles as to the recognition, valuation, presentation and disclosures concerning insurance contracts within the scope of application of the standard. This standard only concerns issuers of insurance contracts. There is no impact for the Group;
―	amendments to IAS 8 "Definition of Accounting Estimates", adopted on 2 March 2022; these amendments aim to facilitate the distinction between accounting methods and accounting estimates. These amendments had no impact on the period as there were no changes in either accounting methods or estimates;
―	amendments to IAS 1 "Presentation of Financial Statements - Practice Statement 2 - Disclosure of Accounting Policies", adopted on 2 March 2022; the purpose of these amendments is to help companies identify useful information to provide to users of financial statements on accounting methods. The application of these amendments did not lead to significant changes in the presentation of the annual financial statements;
―	amendments to IAS 12 "Deferred tax related to assets and liabilities arising from the same transaction", published on 7 May 2021; this amendment specifies how entities should account for deferred taxes on transactions such as leases and decommissioning obligations. The net impact of deferred tax assets and liabilities on IFRS 16 is immaterial; these deferred taxes have not been included in the annual consolidated financial statements;
―	amendments to IAS 12 "International Tax Reform - Pillar 2 Model Rules". Deriving from a project by the OECD and the European Commission, this reform, which aims to guarantee an effective minimum taxation of 15% for groups with revenue of at least €750 million, was introduced by most member states and will apply as from the 2024 fiscal year. To date, however, there are a number of uncertainties regarding the implementation of the rules, particularly as regards its scope of application (in particular for companies applying SIIC or equivalent regimes), and the calculation methods. As a result we cannot yet provide a reliable estimate of the impacts of this reform for the Group;
―	details are expected from the bodies representing the reform in the first few months of the 2024 fiscal year and should make it possible to estimate more reliably the issues the new Pillar 2 provisions raise for the Group.

New standards published pending adoption by the European Union whose application is not yet possible:

―	amendments to IAS 1 "Presentation of financial statements -Classification of liabilities as current or non-current". Non-current liabilities with covenants;
―	amendments to IFRS 16 - Sale and leaseback transactions;
―	amendments to IAS 7 & IFRS 7 Supplier Financing Arrangements.

4.2.1.2 Estimates and judgments

The financial statements have been prepared in accordance with the historic cost convention, with the exception of investment properties and certain financial instruments, which were recognised in accordance with the fair value convention. In accordance with the conceptual framework for IFRS, preparation of the financial statements requires making estimates and using assumptions that affect the amounts shown in these financial statements.

The significant estimates made by the Covivio group in preparing the financial statements mainly relate to:

―	the valuations used for testing impairment, in particular assessing the recoverable value of goodwill and intangible fixed assets;
―	measurement of the fair value of investment properties;
―	assessment of the fair value of derivative financial instruments;
―	measurement of provisions.

Due to the uncertainties inherent in any valuation process, the Covivio group reviews its estimates based on regularly updated information. These estimates take into account, where applicable, the financial impacts of commitments made by the Group on the effects of climate change (note 4.2.1.3 to the consolidated financial statements). The future results of the transactions in question may differ from these estimates.

In addition to the use of estimates, Group management makes use of judgements to define the appropriate accounting treatment of certain business activities and transactions when the IFRS standards and interpretations in effect do not precisely address the accounting issues involved.

4.2.1.3 Taking into account the effects of climate change

In 2021, Covivio announced a new carbon trajectory and raised its ambitions to achieve a 40% reduction in greenhouse gas emissions from 2010 to 2030. This objective, which concerns all Scopes 1, 2 and 3, covers all activities in Europe and the entire life cycle of assets: materials, construction, restructuring and operation. In addition, Covivio is aiming for Net Zero Carbon from 2030 on its Scopes 1 and 2. To better report the financial effects of implementing its climate strategy, Covivio assessed in 2022 the amount necessary to invest in its assets by 2030, which amounts to €254 million.

Covivio continued its momentum in terms of environmental certification: the proportion of the portfolio with HQE, BREAM, LEED or equivalent certification, operating and/or under construction, reached 95.3% at 31 December 2023, in line with the objective of 100% by the end of 2025. It has been accompanied for more than ten years by a strengthened commitment to the construction and renovation of buildings. This strategy actively contributes to achieving the new carbon trajectory in Europe. In addition, in accordance with European regulations, Covivio published for the first time in 2022 its eligibility and alignment rates with the European taxonomy for the objectives of climate change mitigation and adaptation and this year will also publish eligibility indicators for the four other major environmental objectives (Chapter 3 - Statement of Non-Financial Performance of the Universal Registration Document).

Covivio has strengthened its commitment to incorporating ESG criteria into its operations and development by putting a "Say On Climate" resolution to its shareholders. This resolution, which takes into account the current climate plan for 2030 approved by the Board of Directors in 2021 and 2022, was approved by more than 94% of shareholders at the 2023 General Meeting. In this way, Covivio is giving fresh impetus to its ambitions for more sustainable and responsible real estate.

In addition, for its financing, Covivio has requalified 100% of its bonds as green bonds following the publication of its new Sustainable Bond Framework in 2022. This document specifies the environmental criteria used to select eligible assets, including the European taxonomy criteria. Continuing in these lines, Covivio Hotels, a listed subsidiary held at 43.86%, has adopted a Green Financing Framework and has reclassified all its bond issues as green bonds.

Finally, in order to better understand the risks and opportunities related to climate change, Covivio publishes each year a report incorporating the recommendations of the TCFD (Taskforce on Climate Financial related Disclosures) and regularly conducts climate resilience analyses of its portfolio. In June 2023, the Group published its second Climate Report, available on its website.

The inclusion of the effects of climate change had no material impact on the judgements made and the main estimates required to prepare the financial statements.

4.2.1.4 IFRS 7 - Reference table

• Liquidity risk	• § 4.2.2.2
• Sensitivity of financial expenses	• § 4.2.2.3
• Credit risk	• § 4.2.2.4
• Market risk	• § 4.2.2.6
• Foreign exchange risk	• § 4.2.2.7
• Sensitivity of the fair value of investment properties	• § 4.2.5.1.5
• Covenants	• § 4.2.5.11.6

4.2.2 Financial risk management

The operating and financial activities of the company are exposed to the following risks:

4.2.2.1 Marketing risk for properties under development

The Group is involved in property development. As such, it is exposed to a number of different risks, particularly risks associated with construction costs, completion delays and the marketing of properties. These risks can be assessed in light of the development portfolio (see Section 4.2.5.1.4).

4.2.2.2 Liquidity risk

Liquidity risk is managed in the medium and long term with multi-year cash management plans and, in the short term, by using confirmed and undrawn lines of credit. At 31 December 2023, the Covivio group's available cash and cash equivalents amounted to €3,139 million, including €2,047 million in confirmed unused credit lines (€1,739 million in Group Share), €901 million in cash and cash equivalents and €191 million in unused overdraft facilities.

The graph below summarises the maturities of borrowings (in €M) existing as at 31 December 2023:

The maturities of less than a year in the graph above include €223 million NEU Commercial Paper and €37 million NEU MTN.

The amount of interest payable until the maturity of the debt, estimated on the basis of the outstanding amount at 31 December 2023 and the average interest rate on debt, totalled €679 million.

Details of the debt maturities are provided in note 4.2.5.11.3, and a description of the banking covenants and accelerated payment clauses included in the loan agreements is presented in note 4.2.5.11.6.

During 2023, Covivio secured €2.2 billion in refinancing or new financing.

€985 million was raised through the refinancing of corporate credit lines in Green/ESG format, undrawn and with a maturity of up to 7 years.

Covivio also went to the bond market three times in 2023, first in June and July with two €99 million taps of the 2030 and 2031 bonds, then in November with a new €500 million issue of with a maturity of 8.5 years. These issues secure various maturities in 2024 and 2025 on the Group's mortgage and bond debt.

In February, Covivio Hotels exercised the option to purchase a finance lease backed by a hotel in Spain for €21 million. In October, it remortgaged its portfolio of B&B hotels in France for €150 million with a maturity of seven years and repaid the €200 million private placement from its corporate resources expiring in May 2023.

In German Residential, €200 million of mortgage refinancing were secured over 10-year maturities, and €46 million of additional resources (in particular RCF) raised over an average maturity of close to 4 years.

During 2023, Covivio significantly increased its share of debt anchored to ESG criteria to 57% at end-2023.

4.2.2.3 Interest rate risk

The Group's exposure to the risk of changes in market interest rates is linked to its floating rate and long-term financial debt.

To the extent possible, bank debt is primarily hedged via financial instruments (see note 4.2.4.11.4). At 31 December 2023, after taking interest rate swaps into account, approximately 93% of the Group's debt was hedged, and the bulk of the remainder was covered by interest rate caps. The impact in the annual financial statements of the sensitivity of interest rates would be as follows:

(In € thousand) Group Share	Rate +100 bps at 31/12/2023	Rate +50 bps at 31/12/2023	Rate -50 bps at 31/12/2023
Cost of net financial debt, 31 December 2023	-2,451	-1,252	1,274

4.2.2.4 Financial counterparty risk

Given the Covivio group's contractual relationships with its financial partners, the company is exposed to counterparty risk. If any of its counterparties is not in a position to honour its commitments, the Group's income could suffer an adverse effect.

This risk primarily involves the hedging instruments subscribed by the Group and which would have to be replaced by a hedging transaction at the current market rate in the event of a default by the counterparty.

The counterparty risk is limited by the fact that Covivio group is a borrower from a structural standpoint. The risk is therefore mainly restricted to the investments made by the Group and to its counterparties in derivative product transactions. The company continually monitors its exposure to financial counterparty risk. The company's policy is to deal only with top-tier counterparties, while diversifying its financial partners and its sources of funding.

The counterparty risk in terms of hedging is included in the valuation of derivatives and amounted to -€10.8 million at 31 December 2023.

4.2.2.5 Leasing counterparty risk

Covivio group's rental income is subject to a certain degree of concentration, insofar as the top 10 tenants (AccorHotels, Telecom Italia, Orange, NH, Suez, IHG, B&B, Dassault, Tecnimont, Thalès) approximately 31% of annual revenues.

Covivio group is not significantly exposed to the risk of insolvency, since its tenants are selected based on their creditworthiness and the economic prospects of their business segments. The operating and financial performance of the main tenants is regularly reviewed. In addition, tenants grant the Group financial guarantees when leases are signed.

During 2022 and 2023, the Group benefited from the recovery of the hotel business following the gradual lifting of the various health restrictions related to Covid-19. Revenue growth continues. However, new arrears were recorded on the Retail portfolio. An additional provision of €1.3 million was recorded.

The cumulative amount of impairment of trade receivables was €35.1 million at 31 December 2023, a decrease of €2 million compared to 31 December 2022.

4.2.2.6 Risk related to changes in the value of the portfolio

Changes in the fair value of investment properties are recognised in the income statement. Changes in property values can thus have a material impact on the operating performance of the Group.

In addition, part of the company's operating income is generated by the sales plan, the income of which is equally dependent on property values and on the volume of possible transactions.

Rentals and property values are cyclical in nature, the duration of the cycles being variable but generally long-term. Different domestic markets have differing cycles that vary from each other in relation to specific economic and market conditions. Within each national market, prices also follow the cycle in different ways and with varying degrees of intensity, depending on the location and category of the assets.

The macroeconomic factors that have the greatest influence on property values and determine the various cyclical trends include the following:

―	interest rates;
―	the market liquidity and the availability of other profitable alternative investments;
―	economic growth;
―	the outlook for revenue growth.

Low interest rates, abundant liquidity on the market and a lack of profitable alternative investments generally lead to an increase in the value of real estate properties.

Economic growth generally increases demand for leased space and paves the way for rent levels to rise, particularly in offices. These two consequences lead to an increase in the price of real estate assets. Nevertheless, in the medium term, economic growth generally leads to a rise in inflation and then a rise in interest rates.

The investment policy of Covivio group is to minimise the impact of the various stages of the cycle by choosing investments that:

―	have long-term leases and high-quality tenants, which soften the impact of a reduction in market rental income and the resulting decline in real-estate prices;
―	are located in major city centres;
―	have low vacancy rates, in order to avoid the risk of having to re-let vacant space in an environment where demand may be limited.

The holding of real-estate assets intended for leasing exposes the Covivio group to the risk of fluctuation in the value of real-estate assets and lease payments.

Despite the uncertainty created by the economic downturn, this exposure is limited to the extent that the rentals invoiced are derived from rental agreements, the term and diversification of which mitigate the effects of fluctuations in the rental market.

The sensitivity of the fair value of investment properties to changes in capitalisation rates is analysed in Section 4.2.5.1.5.

4.2.2.7 Exchange rate risk

The Group operates both in and outside the euro zone (following acquisition of the hotel properties in the United Kingdom, Poland, Hungary, and the Czech Republic). The Group wanted to hedge against certain currency fluctuations (GBP) by financing part of the acquisitions through a foreign currency loan and a currency swap.

Impact of a decrease in the GBP/EUR exchange rate on the shareholders' equity

	31/12/2023 (in £M)	Actual 1.8% increase in GBP/EUR exchange rate	5% decrease in GBP/EUR exchange rate (in €M)	10% decrease in GBP/EUR exchange rate (in €M)
Asset value	647	13.0	-35.8	-71.9
Debt	400	-7.8	22.3	44.6
Cross-currency swap	250	-4.9	13.9	27.9
IMPACT ON SHAREHOLDERS' EQUITY		0.3	0.5	0.6

(-) corresponds to a loss; (+) corresponds to a gain.

4.2.2.8 Risk related to changes in the value of shares and bonds

The Group is exposed to risks for two categories of shares:

―	non-consolidated shares (note 4.2.5.2);
―	securities consolidated according to the equity method (note 4.2.5.3).

This risk primarily involves listed securities in companies consolidated according to the equity method, which are valued according to their value in use. Value in use is determined based on independent assessments of the real-estate assets and financial instruments.

4.2.2.9 Tax environment

4.2.2.9.1 Change by country

The Group has not observed any major changes in the tax environment in France and in other countries that impact net income in 2023.

On the other hand, the "Pillar 2" international tax reform, deriving from a project by the OECD and the European Commission and aimed at guaranteeing an effective minimum taxation of 15% of groups with revenue of at least €750 million, has been introduced by most member countries and will apply from the 2024 fiscal year.

To date, however, there are a number of uncertainties regarding the implementation of the rules, particularly as regards its scope of application (in particular for companies applying SIIC or equivalent regimes), and the calculation methods. As a result we cannot yet provide a reliable estimate of the impacts of this reform for the Group.

Details are expected from the bodies representing the reform in the first few months of the 2024 fiscal year, which should make it possible to estimate more reliably the issues the new Pillar 2 provisions raise for the Group.

4.2.2.9.2 Tax risks

Due to the complexity and bureaucracy characteristic of the environment in which the Covivio group operates, the Group is exposed to tax risks. If our counsel believes that an adjustment presents a risk of reassessment, a provision is made.

As at 31 December 2023, there was no new tax risk recognised whose effects would have a material impact on the Group's net income or financial position.

4.2.2.9.3 Deferred Taxation

A significant percentage of the Group's real-estate companies have opted for the SIIC regime in France. The impact of deferred tax liabilities is therefore essentially present in German Residential, Germany Offices and Italy Offices. It is also linked to investments in Hotels in Europe (Germany, Spain, Belgium, Ireland, Netherlands, Portugal, the United Kingdom, Poland, Hungary and Czech Republic). In the case of Spain, all Spanish companies have opted for the SOCIMI regime exemption.

Deferred tax is mainly due to the recognition of the fair value of the portfolio. The tax rates are detailed in note 4.2.6.9.2 "Taxes and theoretical tax rate by geographical area".

However, there are deferred tax liabilities related to assets held by the companies prior to opting for SOCIMI treatment.

For the United Kingdom, 9 of the 12 companies will start to apply the UK REIT exemption from 1 January 2024. There is therefore no longer any deferred tax on this part of the portfolio. In consequence, €32.3 million was reversed from deferred taxes at 31 December 2023.

4.2.3 Scope of consolidation

4.2.3.1 Accounting principles applicable to the scope of consolidation

Consolidated subsidiaries and structured entities - IFRS 10

These financial statements include the financial statements of Covivio and the financial statements of the entities (including structured entities) that it controls and its subsidiaries.

Covivio group has control when it:

―	has power over the issuing entity;
―	is exposed or is entitled to variable returns due to its ties with the issuing entity;
―	has the ability to exercise its power in such a manner as to affect the amount of returns that it receives;
―	the potential voting rights held by the Group, other holders of voting rights or other parties;
―	the rights under other contractual agreements (shareholders' agreements);
―	the other facts and circumstances, where applicable, which indicate that the Group has or does not have the actual ability to manage relevant business activities at the moment when decisions must be made, including voting patterns during previous Shareholders' Meetings.

Subsidiaries and structured entities are fully consolidated.

Equity affiliates - IAS 28

An equity affiliate is an entity in which the Group has significant control. Significant control is the power to participate in decisions relating to the financial and operational policy of an issuing entity without, however, exercising control or joint control on these policies.

The results and the assets and liabilities of equity affiliates are recognised in these consolidated financial statements according to the equity method.

Partnerships (joint control) - IFRS 11

Joint control means the contractual agreement to share the control exercised over a company, which only exists in the event where the decisions concerning relevant business activities require the unanimous consent of the parties sharing the control.

Joint ventures

A joint venture is a partnership in which the parties which exercise joint control over the entity have rights to its net assets.

The results and the assets and liabilities of joint ventures are recognised in these consolidated financial statements according to the equity method.

Joint operations

A joint operation is a partnership in which the parties exercising joint control over the operation have rights to the assets, and obligations for the liabilities relating to it. Those parties are called joint operators.

A joint operator must recognise the following items relating to its interest in the joint operation:

―	its assets, including its proportionate share of assets held jointly, where applicable;
―	its liabilities, including its proportionate share of liabilities undertaken jointly, where applicable;
―	the income that it derived from the sale of its proportionate share in the yield generated by the joint operation;
―	its proportionate share of income from the sale of the yield generated by the joint operation;
―	the expenses that it has committed, including its proportionate share of expenses committed jointly, where applicable.

The joint operator accounts for the assets, liabilities, income and expenses pertaining to its interests in a joint operation in accordance with the IFRS that apply to these assets, liabilities, income and expenses.

No Group company is considered to constitute a joint operation.

4.2.3.2 Change in shareholding rate and/or change in consolidation method

Following the capital increase of Hôtel N2 subscribed by an institutional investor, Covivio now holds 50.1% of the capital and still controls the company.

The Group also sold 35.26% of the shares of Zabarella 2023 with a view to carrying out a co-development project in Italy.

Lastly, the Group reduced its shareholding in Fondo Porta di Romana from 40.28% to 32.02% following successive capital increases.

4.2.3.3 List of consolidated companies

Entries and exits from the scope are presented in the table below at the beginning (entry) or end (exit) of each business segment.

77 companies in the France Offices segment	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
Covivio	France	Parent company
SNC Anjou Promo	France	FC	100.00	-
Covivio Ravinelle	France	FC	100.00	100.00
SARL Foncière Margaux	France	FC	100.00	100.00
Covivio 2	France	FC	100.00	100.00
Covivio 4	France	FC	75.00	75.00
Euromarseille 1	France	EM/JV	50.00	50.00
Euromarseille 2	France	EM/JV	50.00	50.00
Euromarseille BI	France	EM/JV	50.00	50.00
Euromarseille PK	France	EM/JV	50.00	50.00
Euromarseille Invest	France	EM/JV	50.00	50.00
Euromarseille H	France	EM/JV	50.00	50.00
Covivio 7	France	FC	100.00	100.00
SCI Bureaux Cœur d'Orly	France	EM/JV	50.00	50.00
SAS Cœur d'Orly Promotion	France	EM/JV	50.00	50.00
Technical	France	FC	100.00	100.00
SCI Atlantis	France	FC	100.00	100.00
Iméfa 127	France	FC	100.00	100.00
SNC Latécoère	France	FC	50.10	50.10
SCI du 32 avenue P. Grenier	France	FC	100.00	100.00
SCI du 40 rue JJ. Rousseau	France	FC	100.00	100.00
SCI du 3 place A. Chaussy	France	FC	100.00	100.00
SARL BGA Transactions	France	FC	100.00	100.00
SCI du 9 rue des Cuirassiers	France	FC	50.10	50.10
SCI du 15 rue des Cuirassiers	France	FC	50.10	50.10
SCI du 10B et 11 A 13 allée des Tanneurs	France	FC	100.00	100.00
SCI du 125 avenue du Brancolar	France	FC	100.00	100.00
SARL du 106-110 rue des Troënes	France	FC	100.00	100.00
SCI du 20 avenue Victor Hugo	France	FC	100.00	100.00
Palmer Plage SNC	France	FC	100.00	100.00
Dual Center	France	FC	100.00	100.00
SNC Télimob Paris	France	FC	100.00	100.00
SNC Télimob Nord	France	FC	100.00	100.00
SNC Télimob Rhone Alpes	France	FC	100.00	100.00
SNC Télimob Sud Ouest	France	FC	100.00	100.00
SNC Télimob Paca	France	FC	100.00	100.00
SARL Télimob Paris	France	FC	100.00	100.00
OPCI Office CB 21	France	FC	75.00	75.00
Lenovilla	France	EM/JV	50.09	50.10
SCI Latécoère 2	France	FC	50.10	50.10
Meudon Saulnier	France	FC	100.00	100.00
Charenton	France	FC	100.00	100.00
Latepromo	France	FC	100.00	100.00
FDR Participation	France	FC	100.00	100.00
SCI Avenue de la Marne	France	FC	100.00	100.00
Omega B	France	FC	100.00	100.00
SCI Rueil B2	France	FC	100.00	100.00
Wellio	France	FC	100.00	100.00
Bordeaux Lac	France	FC	100.00	100.00
Sucy Parc	France	FC	100.00	100.00
Gambetta Le Raincy	France	FC	100.00	100.00
21, Rue Jean Goujon	France	FC	100.00	100.00

Companies in the France Offices segment	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
Villouvette Saint-Germain	France	FC	100.00	100.00
Normandie Niemen Bobigny	France	FC	100.00	100.00
Cité Numérique	France	FC	100.00	100.00
Danton Malakoff	France	FC	100.00	100.00
Meudon Bellevue	France	FC	100.00	100.00
N2 Batignolles	France	FC	50.00	50.00
Valence Victor Hugo	France	FC	100.00	100.00
Nantes Talensac	France	FC	100.00	100.00
Marignane Saint-Pierre	France	FC	100.00	100.00
N2 Batignolles Promo	France	FC	50.00	50.00
6 rue Fructidor	France	FC	50.10	50.10
Fructipromo	France	FC	100.00	100.00
Jean Jacques Bosc	France	FC	100.00	100.00
Terres Neuves	France	FC	100.00	100.00
André Lavignolle	France	FC	100.00	100.00
SCCV Chartres avenue de Sully	France	FC	100.00	100.00
SCI de la Louisiane	France	FC	100.00	100.00
SCCV Bobigny Le 9 ^e Art	France	FC	60.00	60.00
SCCV Fontenay-Sous-Bois Rabelais	France	FC	50.00	50.00
Saint-Germain Hennemont	France	FC	100.00	100.00
Antony Avenue de Gaulle	France	FC	100.00	100.00
Aix en Provence Cézanne	France	FC	100.00	100.00
Hotel N2	France	FC	50.10	100.00
SCI Meudon Juin	France	FC	100.00	100.00
SNC Boulogne Jean Bouveri	France	FC	100.00	100.00
Le Ponant 1986	France	Merger	-	100.00
SCI du 1 rue de Châteaudun	France	Merger	-	100.00
Pompidou	France	Merger	-	100.00
SCI Factor E	France	Merger	-	100.00
Orly Promo	France	Merger	-	100.00
Silex Promo	France	Merger	-	100.00
La Mérina Fréjus	France	Merger	-	100.00

The registered office of the parent company Covivio is located at 18, avenue François Mitterrand - 57000 Metz. The other fully consolidated subsidiaries in the France Offices segment have their registered office located at 10, rue de Madrid - 75008 Paris.

14 companies in the Italy Offices segment	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
Covivio 7 SPA	Italy	FC	100.00	100.00
Central Società di Investimento per Azioni a capitalo fisso Central Sicaf SPA	Italy	FC	51.00	51.00
Covivio Immobiliare 9 SPA SINQ	Italy	FC	100.00	100.00
Covivio Projects & Innovation	Italy	FC	100.00	100.00
Wellio Italy	Italy	FC	100.00	100.00
Imser Securitisation SRL	Italy	FC	100.00	100.00
Imser Securitisation 2 SRL	Italy	FC	100.00	100.00
RESolution Tech	Italy	EM	30.00	30.00
Covivio Development Trading SRL	Italy	FC	100.00	100.00
Zabarella 2023 SRL	Italy	EM	64.74	100.00
Covivio Development Italy SPA	Italy	FC	100.00	100.00
Covivio Attività Immobiliari 4 SRL	Italy	FC	100.00	100.00
Covivio Attività Immobiliari 5 SRL	Italy	FC	100.00	100.00
Fondo Porta Di Romana	Italy	EM	32.02	40.28
Real Estate Roma Olgiata SRL	Italy	Merger	-	75.00

The registered office of the companies in the Italy Offices segment is located at 10, Carlo Ottavio Cornaggia, 20123 Milan.

183 companies in the Hotels in Europe segment	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
SCA Covivio Hotels (parent company) 100% controlled	France	FC	43.86	43.86
Rocky I	France	FC	43.86	-
Rocky II	France	FC	43.86	-
Rocky III	France	FC	43.86	-
Rocky IV	France	FC	43.86	-
Rocky V	France	FC	43.86	-
Rocky VI	France	FC	43.86	-
Rocky VII	France	FC	43.86	-
Rocky VIII	France	FC	43.86	-
Rocky IX	France	FC	43.86	-
Rocky X	France	FC	43.86	-
Rocky XI	France	FC	43.86	-
Rocky Covivio Limited	United Kingdom	FC	43.86	-
SARL Loire	France	FC	43.86	43.86
Ruhl Côte d'Azur	France	FC	43.86	43.86
Foncière Otello	France	FC	43.86	43.86
Hôtel René Clair	France	FC	43.86	43.86
Ulysse Belgique	Belgium	FC	43.86	43.86
Ulysse Trefonds	Belgium	FC	43.86	43.86
Foncière No Bruxelles Grand Place	Belgium	FC	43.86	43.86
Foncière No Bruxelles Aéroport	Belgium	FC	43.86	43.86
Foncière No Bruges Centre	Belgium	FC	43.86	43.86
Foncière IB Bruxelles Grand-Place	Belgium	FC	43.86	43.86
Foncière IB Bruxelles Aéroport	Belgium	FC	43.86	43.86
Foncière IB Bruges Centre	Belgium	FC	43.86	43.86
Foncière Antwerp Centre	Belgium	FC	43.86	43.86
Foncière Gand Opéra	Belgium	FC	43.86	43.86
Foncière Bruxelles Expo Atomium	Belgium	FC	43.86	43.86
Murdelux	Luxembourg	FC	43.86	43.86
Portmurs	Portugal	FC	43.86	43.86
Sunparks Oostduinkerke	Belgium	FC	43.86	43.86
Foncière Vielsam	Belgium	FC	43.86	43.86
Sunparks Trefonds	Belgium	FC	43.86	43.86
Foncière Kempense Meren	Belgium	FC	43.86	43.86
Iris Holding France	France	EM/EA	8.73	8.73
Foncière Iris SAS	France	EM/EA	8.73	8.73
Sables d'Olonne SAS	France	EM/EA	8.73	8.73
OPCI Iris Invest 2010	France	EM/EA	8.73	8.73
Covivio Hotels Gestion Immobilière	France	FC	43.86	43.86
Tulipe Holding Belgique	Belgium	EM/EA	8.73	8.73
Narcisse Holding Belgique	Belgium	EM/EA	8.73	8.73
Foncière Bruxelles Tour Noire	Belgium	EM/EA	8.73	8.73
Foncière Louvain	Belgium	EM/EA	8.73	8.73
Foncière Bruxelles Centre Gare	Belgium	EM/EA	8.73	8.73
Iris Tréfonds	Belgium	EM/EA	8.73	8.73
Foncière Louvain Centre	Belgium	EM/EA	8.73	8.73
Foncière Liège	Belgium	EM/EA	8.73	8.73
Foncière Bruxelles Aéroport	Belgium	EM/EA	8.73	8.73
Foncière Bruxelles Sud	Belgium	EM/EA	8.73	8.73
Foncière Bruge Station	Belgium	EM/EA	8.73	8.73
Iris investor Holding GmbH	Germany	EM/EA	8.73	8.73
Iris Berlin GmbH	Germany	EM/EA	8.73	8.73
Iris Bochum & Essen	Germany	EM/EA	8.73	8.73
Iris Frankfurt GmbH	Germany	EM/EA	8.73	8.73
Iris Nurnberg GmbH	Germany	EM/EA	8.73	8.73
Iris Stuttgart GmbH	Germany	EM/EA	8.73	8.73
Iris General Partner GmbH	Germany	EM/EA	8.73	8.73
Iris Verwaltungs GmbH & co KG	Germany	EM/EA	8.73	8.73
B&B Invest Lux 1	Germany	FC	43.86	43.86
B&B Invest Lux 2	Germany	FC	43.86	43.86
B&B Invest Lux 3	Germany	FC	43.86	43.86
Campeli	France	EM/EA	8.73	8.73
OPCI Camp Invest	France	EM/EA	8.73	8.73
Dahlia	France	EM/EA	8.77	8.77
Foncière B2 Hôtel Invest	France	FC	22.02	22.02
OPCI B2 Hôtel Invest	France	FC	22.02	22.02
Foncière B3 Hôtel Invest	France	FC	22.02	22.02
B&B Invest Lux 4	Germany	FC	43.86	43.86
NH Amsterdam Center Hotel HLD	Netherlands	FC	43.86	43.86
Hotel Amsterdam Centre Propco	Netherlands	FC	43.86	43.86
Mo Lux 1	Luxembourg	FC	43.86	43.86
LHM Holding Lux SARL	Luxembourg	FC	43.86	43.86
LHM ProCo Lux SARL	Luxembourg	FC	45.65	45.65
SCI Rosace	France	FC	43.86	43.86
Mo Drelinden, Niederrad, Düsseldorf	Germany	FC	41.23	41.23
Mo Berlin	Germany	FC	41.23	41.23
Mo First Five	Germany	FC	42.91	42.91
Ringer	Germany	FC	43.86	43.86
B&B Invest Lux 5	Germany	FC	40.79	40.79
SCI Hôtel Porte Dorée	France	FC	43.86	43.86
FDM M Lux	Luxembourg	FC	43.86	43.86
OPCO Rosace	France	FC	43.86	43.86
Exco Hôtel	Belgium	FC	43.86	43.86
Invest Hôtel	Belgium	FC	43.86	43.86
H Invest Lux	Luxembourg	FC	43.86	43.86
Hermitage Holdco	France	FC	43.86	43.86
Foncière B4 Hôtel Invest	France	FC	22.02	22.02
B&B Invest Spain SLU	Spain	FC	43.86	43.86
Rock-Lux	Luxembourg	FC	43.86	43.86
Société Liloise Investissement Immobilier Hôtelier SA	France	FC	43.86	43.86
Berlin I	Germany	FC	41.63	41.63
Opco Grand Hôtel Berlin Betriebs	Germany	FC	41.63	41.63
Berlin II	Germany	FC	41.63	41.63
Opco Hôtel Stadt Berlin Betriebs	Germany	FC	41.63	41.63
Berlin III	Germany	FC	41.63	41.63
Opco Hôtel Potsdam Betriebs	Germany	FC	41.63	41.63
Dresden II	Germany	FC	41.63	41.63
Dresden III	Germany	FC	41.63	41.63
Dresden IV	Germany	FC	41.63	41.63
Opco BKL Hotelbetriebsgesellschaft (Dresden II to IV)	Germany	FC	41.63	41.63

Companies in the Hotels in Europe segment	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
Dresden V (Propco Pullman Newa Dresden)	Germany	FC	41.63	41.63
Opco Hôtel Newa Dresden Betriebs (Pullman)	Germany	FC	41.63	41.63
Leipzig I (Propco Westin Leipzig)	Germany	FC	41.63	41.63
Opco HotelgesellschaftGeberst, Betriebs (Westin Leipzig)	Germany	FC	41.63	41.63
Leipzig II (Propco Radisson Blu Leipzig)	Germany	FC	41.63	41.63
Opco Hôtel Deutschland Leipzig Betriebs (Radisson Blu)	Germany	FC	41.63	41.63
Erfurt I (Propco Radisson Blu Erfurt)	Germany	FC	41.63	41.63
Opco Hôtel Kosmos Erfurt (Radisson Blu)	Germany	FC	41.63	41.63
Airport Garden Hotel NV	Belgium	FC	43.86	43.86
Investment FDM Rocatiera	Spain	FC	43.86	43.86
Bardiomar	Spain	FC	43.86	43.86
Trade Center Hotel	Spain	FC	43.86	43.86
H Invest Lux 2	Luxembourg	FC	43.86	43.86
Constance	France	FC	43.86	43.86
Hotel Amsterdam Noord FDM	Netherlands	FC	43.86	43.86
Hotel Amersfoort FDM	Netherlands	FC	43.86	43.86
Constance Lux 1	Luxembourg	FC	43.86	43.86
Constance Lux 2	Luxembourg	FC	43.86	43.86
Nice-M	France	FC	43.86	43.86
Rock-Lux OPCO	Luxembourg	FC	43.86	43.86
Blythswood Square Hotel Holdco	United Kingdom	FC	43.86	43.86
George Hotel Investments Holdco	United Kingdom	FC	43.86	43.86
Grand Central Hotel Company Holdco	United Kingdom	FC	43.86	43.86
Lagonda Leeds Holdco	United Kingdom	FC	43.86	43.86
Lagonda Palace Holdco	United Kingdom	FC	43.86	43.86
Lagonda Russell Holdco	United Kingdom	FC	43.86	43.86
Lagonda York Holdco	United Kingdom	FC	43.86	43.86
Oxford Spires Hotel Holdco	United Kingdom	FC	43.86	43.86
Oxford Thames Holdco	United Kingdom	FC	43.86	43.86
Roxburghe Investments Holdco	United Kingdom	FC	43.86	43.86
The St David's Hotel Cardiff Holdco	United Kingdom	FC	43.86	43.86
Wotton House Properties Holdco	United Kingdom	FC	43.86	43.86
Blythswood Square Hotel Glasgow	United Kingdom	FC	43.86	43.86
George Hotel Investments	United Kingdom	FC	43.86	43.86
Grand Central Hotel Company	United Kingdom	FC	43.86	43.86
Lagonda Leeds PropCo	United Kingdom	FC	43.86	43.86
Lagonda Palace PropCo	United Kingdom	FC	43.86	43.86
Lagonda Russell PropCo	United Kingdom	FC	43.86	43.86
Lagonda York PropCo	United Kingdom	FC	43.86	43.86
Oxford Spires Ltd (Propco)	United Kingdom	FC	43.86	43.86
Oxford Thames Hotel Ltd (Propco)	United Kingdom	FC	43.86	43.86
Roxburghe Investments PropCo	United Kingdom	FC	43.86	43.86
The St David's Hotel Cardiff	United Kingdom	FC	43.86	43.86
Wotton House Properties	United Kingdom	FC	43.86	43.86
HEM Diesterlkade Amsterdam BV	Netherlands	FC	43.86	43.86
Dresden Dev	Luxembourg	FC	41.63	41.63
Delta Hotel Amersfoort	Netherlands	FC	43.86	43.86
Opci Oteli	France	EM/EA	13.66	13.66
CBI Orient SAS	France	EM/EA	13.66	13.66
CBI Express SAS	France	EM/EA	13.66	13.66
Kombon	France	EM/EA	14.62	14.62
Jouron	Belgium	EM/EA	14.62	14.62
Foncière Gand Cathédrale	Belgium	EM/EA	14.62	14.62
Foncière Bruxelles Sainte Catherine	Belgium	EM/EA	14.62	14.62
Foncière IGK	Belgium	EM/EA	14.62	14.62
Forsmint Investments	Poland	FC	43.86	43.86
Cerstook Investments	Poland	FC	43.86	43.86
Noxwood lnvestments	Poland	FC	43.86	43.86
Redwen lnvestments	Poland	FC	43.86	43.86
Sardobal lnvestments	Poland	FC	43.86	43.86
Kilmainham Property Holding	Ireland	FC	43.86	43.86
Thormont Ltd	Ireland	FC	43.86	43.86
Honeypool	Ireland	FC	43.86	43.86
SC CZECH AAD	Czech Republic	FC	43.86	43.86
New York Palace Propco	Hungary	FC	43.86	43.86
Hotel Plaza SAS	France	FC	43.86	43.86
Palazzo Naiadi Rome Propco	Italy	FC	43.86	43.86
Palazzo Gaddi Florence Propco	Italy	FC	43.86	43.86
Bellini Venice Propco	Italy	FC	43.86	43.86
Dei Dogi Venice Propco	Italy	FC	43.86	43.86
SLIH AD	France	FC	43.86	43.86
SLIH CP	France	FC	43.86	43.86
SLIH GHB	France	FC	43.86	43.86
SLIH HDB	France	FC	43.86	43.86
SLIH HG	France	FC	43.86	43.86
SLIH HIR	France	FC	43.86	43.86
SOHO 2 SAS	France	FC	43.86	43.86
Roco Italy Hodco Srl	Italy	FC	43.86	43.86
OPCO 2 Bruges NV	Belgium	FC	43.86	43.86
Wotton House Properties Opco Limited	United Kingdom	FC	43.86	43.86
Lagonda York PropCo	United Kingdom	FC	43.86	43.86
Lagonda Leeds PropCo	United Kingdom	FC	43.86	43.86
Foncière Malines	Belgium	Disposed of	-	8.73
Foncière Namur	Belgium	Disposed of	-	8.73
So Hospitality	France	Merged	-	43.86
Verdun Propco	France	Merged	-	43.86

The registered office of the parent company Covivio Hotels and its main fully consolidated French subsidiaries is located at 10, rue de Madrid - 75008 Paris.

141 companies in the German Residential segment	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
Covivio Immobilien SE (parent company) 100% controlled	Germany	FC	61.70	61.70
Covivio Immobilien	Germany	FC	61.70	61.70
Covivio Lux Residential	Germany	FC	65.57	65.57
Covivio Valore 4	Germany	FC	65.57	65.57
Covivio Wohnen Verwaltungs	Germany	FC	61.70	61.70
Covivio Grundstücks	Germany	FC	61.70	61.70
Covivio Grundvermögen	Germany	FC	61.70	61.70
Covivio Wohnen Service	Germany	FC	61.70	61.70
Covivio Wohnen	Germany	FC	61.70	61.70
Covivio Gesellschaft für Wohnen Datteln	Germany	FC	65.57	65.57
Covivio Stadthaus	Germany	FC	65.57	65.57
Covivio Wohnbau	Germany	FC	65.57	65.57
Covivio Wohnungsgesellechaft GmbH Dümpten	Germany	FC	65.57	65.57
Covivio Berolinum 2	Germany	FC	65.57	65.57
Covivio Berolinum 3	Germany	FC	65.57	65.57
Covivio Berolinum 1	Germany	FC	65.57	65.57
Covivio Remscheid	Germany	FC	65.57	65.57
Covivio Valore 6	Germany	FC	65.57	65.57
Covivio Holding	Germany	FC	100.00	100.00
Covivio Berlin 67 GmbH	Germany	FC	65.57	65.57
Covivio Berlin 78 GmbH	Germany	FC	65.57	65.57
Covivio Berlin 79 GmbH	Germany	FC	65.57	65.57
Covivio Dresden GmbH	Germany	FC	65.57	65.57
Covivio Berlin I SARL	Germany	FC	65.57	65.57
Covivio Berlin V SARL	Germany	FC	65.57	65.57
Covivio Berlin C GmbH	Germany	FC	65.57	65.57
Covivio Dansk Holding Aps	Denmark	FC	61.70	61.70
Covivio Dansk L Aps	Germany	FC	65.57	65.57
Covivio Berlin Prime	Germany	FC	65.57	65.57
Berlin Prime Commercial	Germany	FC	65.57	65.57
Acopio	Germany	FC	100.00	100.00
Covivio Hamburg Holding ApS	Denmark	FC	65.57	65.57
Covivio Hamburg 1 ApS	Germany	FC	65.57	65.57
Covivio Hamburg 2 ApS	Germany	FC	65.57	65.57
Covivio Hamburg 3 ApS	Germany	FC	65.57	65.57
Covivio Hamburg 4 ApS	Germany	FC	65.57	65.57
Covivio Arian	Germany	FC	65.57	65.57
Covivio Bennet	Germany	FC	65.57	65.57
Covivio Marien-Carré	Germany	FC	65.57	65.57
Covivio Berlin IV ApS	Denmark	FC	61.70	61.70
Covivio Berolina Verwaltungs GmbH	Germany	FC	65.57	65.57
Residenz Berolina GmbH & Co KG	Germany	FC	67.33	67.33
Covivio Quadrigua IV GmbH	Germany	FC	65.57	65.57
Real Property Versicherungsmakler	Germany	FC	61.70	61.70
Covivio Quadrigua 15	Germany	FC	69.05	69.05
Covivio Quadrigua 45	Germany	FC	69.05	69.05
Covivio Quadrigua 36	Germany	FC	69.05	69.05
Covivio Quadrigua 46	Germany	FC	69.05	69.05
Covivio Quadrigua 40	Germany	FC	69.05	69.05
Covivio Quadrigua 47	Germany	FC	69.05	69.05
Covivio Quadrigua 48	Germany	FC	69.05	69.05
Covivio Fischerinsel	Germany	FC	65.57	65.57
Covivio Berlin Home	Germany	FC	65.57	65.57
Amber Properties SARL	Germany	FC	65.57	65.57
Covivio Gettmore	Luxembourg	FC	65.57	65.57
Saturn Properties SARL	Germany	FC	65.57	65.57
Venus Properties SARL	Germany	FC	65.57	65.57
Covivio Vinetree	Luxembourg	FC	65.57	65.57
Acopio Facility	Germany	FC	65.53	65.53
Covivio Development	Germany	FC	61.70	61.70
Covivio Rehbergen	Germany	FC	65.57	65.57
Covivio Handlesliegenschaften	Germany	FC	65.57	65.57
Covivio Alexandrinenstrasse	Germany	FC	65.57	65.57
Covivio Spree Wohnen 1	Germany	FC	65.57	65.57
Covivio Spree Wohnen 6	Germany	FC	65.57	65.57
Covivio Spree Wohnen 7	Germany	FC	65.57	65.57
Covivio Spree Wohnen 8	Germany	FC	65.57	65.57
Nordens Immobilien III	Germany	FC	65.57	65.57
Montana-Portfolio	Germany	FC	65.57	65.57
Covivio Cantianstrasse 18 Grundbesitz	Germany	FC	65.57	65.57
Covivio Konstanzer Str. 54/Zahringerstr. 28, 28a Grundbesitz	Germany	FC	65.57	65.57
Covivio Mariend. Damm 28	Germany	FC	65.57	65.57
Covivio Markstrasse 3 Grundbesitz	Germany	FC	65.57	65.57
Covivio Schnellerstrasse 44 Grundbesitz	Germany	FC	65.57	65.57
Covivio Schnönwalder Str. 69 Grundbesitz	Germany	FC	65.57	65.57
Covivio Schulstrasse 16/17. Grundbesitz	Germany	FC	65.57	65.57
Covivio Sophie-Charlotten Strasse 31, 32 Grundbesitz	Germany	FC	65.57	65.57
Covivio Zelterstrasse 3 Grundbesitz	Germany	FC	65.57	65.57
Covivio Zinshäuser Alpha	Germany	FC	65.57	65.57
Covivio Zinshäuser Gamma	Germany	FC	65.57	65.57

Companies in the German Residential segment	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
Second Ragland	Germany	FC	65.57	65.57
Seed Portfolio 2	Germany	FC	65.57	65.57
Erz 1	Germany	FC	65.57	65.57
Covivio Berlin 9	Germany	FC	65.57	65.57
Erz 2	Germany	FC	65.57	65.57
Best Place Living	Germany	FC	31.47	31.47
Covivio Berlin 8	Germany	FC	65.57	65.57
Covivio Selectimmo.de	Germany	FC	65.57	65.57
Covivio Prenzlauer Promenade 49 Besitzgesellschaft	Germany	FC	65.57	65.57
Meco Bau	Germany	FC	61.70	61.70
Covivio Blankenburger Str.	Germany	FC	65.57	65.57
Covivio Immobilien Financing	Germany	FC	65.57	65.57
Covivio Treskowallee 202 Entwicklungsgesel	Germany	FC	65.57	65.57
Covivio Hathor Berlin	Germany	FC	65.57	65.57
Covivio Rhenania 1	Germany	FC	65.57	65.57
Covivio Prime Financing	Germany	FC	61.70	61.70
Covivio Grundbesitz NRW	Germany	FC	65.57	65.57
Covivio Eiger II	Germany	FC	65.57	65.57
Covivio Southern Living Grundbesitz	Germany	FC	65.57	65.57
Covivio Grundbesitz NRW 2	Germany	FC	65.57	65.57
Covivio Buchstrasse 6 Fehmarner Strasse 14	Germany	FC	65.57	65.57
Covivio Erkstrasse 20	Germany	FC	65.57	65.57
Covivio Martin Opitz Strasse 5	Germany	FC	65.57	65.57
Covivio Kurstrasse 23	Germany	FC	65.57	65.57
Covivio Pankstrasse 55 Verwaltungs	Germany	FC	65.57	65.57
Covivio Grospiusstrasse 4	Germany	FC	65.57	65.57
Covivio Grundbesitz Schillerstrasse 10	Germany	FC	65.57	65.57
Covivio Grundbesitz Firstrasse 22	Germany	FC	65.57	65.57
Covivio Lindauer Alee 20 GmbH	Germany	FC	65.57	65.57
TSC 2 Holding Sàrl	Germany	FC	65.57	65.57
TSC Berlin Alpha	Germany	FC	65.57	65.57
TSC Berlin Beta	Germany	FC	65.57	65.57
TSC Berlin Gamma	Germany	FC	65.57	65.57
TSC Berlin Delta	Germany	FC	65.57	65.57
TSC Berlin Epsilon	Germany	FC	65.57	65.57
TSC Berlin Zeta	Germany	FC	65.57	65.57
TSC Berlin Eta	Germany	FC	65.57	65.57
TSC Berlin Theta	Germany	FC	65.57	65.57
TSC Berlin Lota	Germany	FC	65.57	65.57
TSC Berlin Kappa	Germany	FC	65.57	65.57
TSC Berlin Lambda	Germany	FC	65.57	65.57
TSC Berlin My	Germany	FC	65.57	65.57
TSC Berlin XI	Germany	FC	65.57	65.57
TSC Berlin Omicron	Germany	FC	65.57	65.57
TSC Berlin Rho	Germany	FC	65.57	65.57
TSC Berlin Sigma	Germany	FC	65.57	65.57
TSC Berlin Tau	Germany	FC	65.57	65.57
TSC Berlin Ypsilon	Germany	FC	65.57	65.57
Akragas Immobilien	Germany	FC	69.05	69.05
AC Gustav-Müller-Strasse Grundstucks	Germany	FC	61.70	61.70
Areal Consult Grundstucks	Germany	FC	61.70	61.70
Areal Invest Grafestrasse	Germany	FC	61.70	61.70
Areal Invest XI Grunstucks	Germany	FC	61.70	61.70
Areal Invest XIII Grundstücks	Germany	FC	61.70	61.70
Areal Invest XXIX Grundstücks	Germany	FC	61.70	61.70
Areal Invest XXIII Grundstücks	Germany	FC	61.70	61.70
JFT Grundbesitz Nr. 28	Germany	FC	61.70	61.70
Nox Capital Kulmer11 Grundbesitz	Germany	FC	61.70	61.70
Nox Capital Nr. 15	Germany	FC	61.70	61.70
Nox Capital Leinestraße 21 Grundbesitz	Germany	FC	61.70	61.70
Nox Capital Kiehlufer 39 Grundbesitz	Germany	FC	61.70	61.70
Covivio Berolina Fischenrinsel	Germany	Merged		65.57
Covivio Hansastraße 253	Germany	Merged		65.57

The registered office of the parent company Covivio Immobilien SE is at Essener Strasse 66, 46047 Oberhausen.

22 companies Germany Offices segment	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
Covivio Office Holding	Germany	FC	100.00	100.00
Covivio Alexanderplatz	Luxembourg	FC	55.00	55.00
Covivio Alexanderplatz	Germany	FC	100.00	100.00
Covivio Office Berlin	Germany	FC	100.00	100.00
Covivio Tino Schwierzina Strasse 32 Grundbezitz	Germany	FC	94.22	94.22
Covivio Gross-Berliner-Damm	Germany	FC	100.00	100.00
Covivio Office (formerly Godewind Immobilien)	Germany	FC	100.00	100.00
Covivio Office 1	Germany	FC	94.22	94.22
Covivio Beteilingungs	Germany	FC	94.22	94.22
Covivio Office 2	Germany	FC	94.22	94.22
Covivio Office 3	Germany	FC	94.22	94.22
Covivio Office 4	Germany	FC	94.22	94.22
Covivio Office 5	Germany	FC	94.22	94.22
Covivio Office 7	Germany	FC	94.22	94.22
Covivio Office 6	Germany	FC	89.90	89.90
Covivio Technical Services 1	Germany	FC	100.00	100.00
Covivio Technical Services 2	Germany	FC	94.22	94.22
Covivio Technical Services 3	Germany	FC	94.22	94.22
Covivio Technical Services 4	Germany	FC	94.22	94.22
Covivio Verwaltungs 4	Germany	FC	94.22	94.22
Covivio Construction	Germany	FC	100.00	100.00
Acopio Office Energy GmbH	Germany	FC	100.00	100.00

The registered office of the parent company Covivio Office Holding is at Knesebeckstrasse 3, 10623 Berlin.

6 companies in the Other segment (France Residential, Car Parks, Services)	Country	Consolidation method in 2023	% interest in 2023	% interest in 2022
1 Car Park company
Trinité	France	FC	100.00	100.00
5 services companies
Covivio Hôtels Gestion	France	FC	100.00	100.00
Covivio Property SNC	France	FC	100.00	100.00
Covivio Développement	France	FC	100.00	100.00
Covivio SGP	France	FC	100.00	100.00
Covivio Proptech	France	FC	100.00	100.00
Covivio Proptech Germany	Germany	Merger		100.00

FC: Full consolidation.

EM/EA: Equity Method - Affiliates.

EM/JV: Equity Method - Joint Ventures.

NC: Not Consolidated.

PC: Proportionate Consolidation.

There are 443 companies in the Group, including 397 fully consolidated companies and 46 equity affiliates.

4.2.3.4 Evaluation of control

Considering the rules of governance that grant Covivio powers giving it the ability to affect asset yields, the following companies are fully consolidated.

SNC Latécoère and Latécoère 2 (consolidated structured entities)

SCI Latécoère and Latécoère 2 were 50.1% held by Covivio at 31 December 2023 and fully consolidated. The partnership with the Crédit Agricole Assurances Group (49.9%) was established in 2012 and 2015 as part of the Dassault Systems Campus project and its extension, in Vélizy. Covivio signed a draft agreement to extend the Dassault Systèmes campus through the construction of a new 27,600 m ² building and the signing of new leases. These leases started to run in May 2023 following delivery of the extension.

SCIs of 9 and 15 rue des Cuirassiers (consolidated structured entities)

As at 31 December 2023, the SCIs of 9 and 15 rue des Cuirassiers were 50.1% held by Covivio and fully consolidated. The partnership with Assurances du Crédit Mutuel (49.9%) was created in early December 2017 as part of the Silex 1 and Silex 2 office projects in Lyon Part-Dieu. Delivery of the Silex 2 project took place in early July 2021.

SAS 6 rue Fructidor (consolidated structured entities)

As at 31 December 2023, the company 6 rue Fructidor was 50.1% held by Covivio and fully consolidated.

The partnership with Crédit Agricole Assurances was set up in October 2019 as part of the Paris Saint Ouen So Pop project, located on the border between Paris and Saint-Ouen.

Construction work was completed on a building as part of a CPI signed on 29 October 2019 by Fructidor and Fructipromo. The project was delivered on 16 September 2022.

SCI N2 Batignolles, Hôtel N2 and SNC Batignolles Promo (consolidated structured entities)

SCI N2 Batignolles and SNC Batignolles Promo was 50% held by Covivio at 31 December 2023 and fully consolidated.

As at 31 December 2023, Hôtel N2 was 50.1% held by Covivio and fully consolidated.

The partnership with Assurances du Crédit Mutuel (50%) was set up in 2018 as part of the Paris N2 StreamBuilding development project located in the Clichy Batignolles ZAC (development zone) in the 17 ^th district of Paris. The delivery took place on 27 September 2022.

SNC Batignolles Promo is 50% owned by Hines.

Covivio Alexanderplatz SARL (consolidated structured entity)

Covivio Alexanderplatz SARL was 55% held by Covivio as of 31 December 2023 and fully consolidated. The partnership with Covéa (25%) and Generali Vie (20%) was set up in June 2021 as part of the Alexanderplatz project in Berlin. Delivery of this project is scheduled for February 2027. The construction of the building is carried out as part of a CPI between Covivio Alexanderplatz and Covivio Construction GmbH, wholly owned by Covivio.

The following companies are consolidated by the equity method:

SCI Lenovilla (joint venture)

As at 31 December 2023, Lenovilla was 50.09% held by Covivio and consolidated according to the equity method. The partnership with the Crédit Agricole Assurances Group (49.91%) was established in January 2013 as part of the New Vélizy (Thalès Campus) project. The shareholder agreement stipulates that decisions be made unanimously.

SCI Cœur d'Orly Bureaux (joint venture)

SCI Cœur d'Orly Bureaux was 50% held by Covivio and 50% by Aéroports de Paris at 31 December 2023 and consolidated by the equity method. On 10 March 2008, the shareholders signed a memorandum of understanding, subsequently amended by a succession of deeds and by partnership agreements which set out the partners' rights and obligations with respect to SCI Cœur d'Orly Bureaux.

Fondo Porta di Romana

Fondo Porta di Romana is 32.02% owned by Covivio, 64.73% by COIMA and 3.25% by Prada as at 31 December 2023 and is consolidated using the equity method. Shareholders are bound by a memorandum of understanding specifying the fund's governance rules: no single shareholder can make a key management decision (implementation of an Advisory Committee ruling by a majority of five out of six members) or modify the rules of the fund (implementation of a qualified majority).

4.2.4 Significant events during the period

Significant events during the period were as follows:

4.2.4.1 Macroeconomic environment

Since 2023, several factors impacted the macroeconomic environment in which Covivio operates.

End of various health restrictions in Europe

The end of the various health restrictions in Europe offered Covivio a positive outlook, particularly for the hotel business (note 4.2.4.4).

Investment market slowdown

The investment market slowed down significantly in the face of rising interest rates.

Inflation

The effect of the increase in energy costs is limited for Covivio due to rent revision clauses (or indexation) or the reinvoicing of these costs to tenants.

The increase in the cost of construction materials is included in Covivio's investment policy and in the monitoring of the budget for real estate development operations.

Rising interest rates

The interest-rate risk management policy (note 4.2.2.3) enables Covivio to hedge against the risk of an increase in the interest rates of its variable-rate debt.

4.2.4.2 France Offices

Disposals of assets (€475 million - profit on disposals net of fees: -€29 million) and assets under preliminary sale agreement (€115 million)

During the year, assets were sold for a total of €475 million, generating an income from disposal net of costs of -€29 million.

At 31 December 2023, the amount of assets under promise amounted to €115 million and included two assets in the Paris region.

Development portfolio

The asset development programme is presented in note 4.2.5.1.4.

2023 was notable for the delivery of three assets located in Vélizy, Fontenay-sous-Bois and Levallois-Perret, and the start of four new projects in Paris. A building in Paris's 8 ^th arrondissement being redeveloped was also sold as well as a real estate development contract testifying to the quality of the development projects carried out by Covivio's teams.

Mortgage financing

On 13 June and 28 July 2023, Covivio carried out two taps for a total amount of €198 million maturing in 2030 and 2031. On 5 December 2023, Covivio issued a new €500 million Green Bond maturing in 2032.

4.2.4.3 Italy Offices

Disposals (€64 million - loss on disposal net of fees: €0 million) and assets under preliminary sale agreements (€42 million)

During 2023, assets were disposed of totalling €64 million.

As at 31 December 2023, assets under preliminary agreement amounted to €42 million on four assets.

Development portfolio

The asset development programme is presented in note 4.2.5.1.4.

Partial repayment of Central debt (Telecom Italia portfolio)

Following the sale of four assets in Italy, €12 million of Central debt was repaid.

4.2.4.4 Hotels in Europe

Recovery following the gradual lifting of various health restrictions

2023 continued the story, with occupancy rates rising and average prices well above 2019 levels. This continued growth is reflected in:

―	an increase in rental income from variable rents of €18 million, mainly on the Accor portfolio, in France and Belgium;
―	the €13.4 million increase in the EBITDA of hotels under management.

Disposals of assets (€22 million - profit on disposals net of fees: €0.4 million) and assets under preliminary sale agreement (€155 million)

During 2023, Covivio Hotels disposed of assets for €22 million.

As of 31 December 2023, there are preliminary sale agreements on two hotels in Spain for €96.9 million (including €74.6 million related to the commitment to sell shares), on one hotel in France for €8.8 million, and on retail assets for a total of €49.7 million.

Signature of an undertaking to sell shares

During 2023, Covivio signed, through its subsidiary Covivio Hotels, a commitment to sell shares in a company that owns a hotel in Spain for €74.6 million.

In accordance with IFRS 5, the company derecognised other assets and liabilities held for sale by €6.5 million and €6.6 million on the assets and liabilities side, respectively.

Refinancing and redemption

In May 2023, Covivio Hotels repaid its €200 million private placement and drew down €213 million from its credit lines. It also refinanced a €150 million debt.

United Kingdom - Adoption of UK REIT status from 2024

An intra-group restructuring was carried out at the end of 2023 to allow 9 out of 12 United Kingdom assets to adopt UK REIT status from 1 January 2024, which will allow an income tax exemption subject to the distribution of 90% of rental income. This led to the creation of 12 new companies and did not generate any significant impact on 2023 results except for those described in Section 4.2.2.9.3.

4.2.4.5 German Residential

Fall in German Residential asset values

The German Residential segment decreased in value, reflecting an increase in interest rates combined with regulatory caps on rent rises.

Refinancing and redemption

Covivio Immobilien secured €200 million in mortgage refinancing with a 10-year maturity and €46 million in additional resources (notably RCFs) with an average maturity of close to 4 years.

4.2.5 Notes related to the statement of financial position

4.2.5.1 Portfolio

4.2.5.1.1 Accounting principles applicable to intangible and tangible fixed assets

Intangible fixed assets

Identifiable intangible fixed assets are amortised on a straight-line basis over their expected useful lives. Intangible fixed assets acquired are recorded on the balance sheet at acquisition cost. They mainly include computer software.

Intangible fixed assets are amortised on a straight-line basis, as follows:

―	software: over a period of 1 to 10 years.

Business combinations (IFRS 3) and goodwill from acquisitions

An entity must determine whether a transaction or other event constitutes a business combination within the meaning of the definition of IFRS 3, which states that a company is an integrated set of activities and assets that can be operated and managed for the purpose of providing goods or services to clients, generating investment income (such as dividends or interest) or generating other income from ordinary activities.

In this case, the acquisition cost is set at the fair value on the date of the exchange of the assets and liabilities and equity instruments issued for the purpose of acquiring the entity. Goodwill is recognised as an asset for the surplus of the acquisition cost on the portion of the buyer's interest in the fair value of the assets and liabilities acquired, net of any deferred taxes. Negative goodwill is recorded in the income statement.

To determine whether a transaction is a business combination, the Group considers in particular whether an integrated set of activities and assets is acquired in addition to real estate and whether this set comprises at least one input and a substantial process which, together, contribute significantly to the capacity to generate outputs.

The prospective additional costs are appraised at fair value at the acquisition date. They are definitely appraised in the 12 months following the acquisition. The subsequent change of these additional costs is recorded in the income statement.

After its initial recognition, the goodwill is subject to an impairment test at least once a year. The impairment test consists in comparing the net book value of the intangible and tangible fixed assets and goodwill related to the valuation of the Hotel Operating properties made by the real estate appraisers. These tests led to the recognition of a €2.7 million impairment charge on the operating properties for the year.

If the Group concludes that the transaction is not a business combination, then it recognises the transaction as an acquisition of assets and applies the standards appropriate to acquired assets.

Costs related to the acquisition categorised under business combinations are recognised as expenses in accordance with IFRS 3 under "Income from changes in consolidation scope" in the income statement. The costs associated with an acquisition that does not qualify as a business combination are an integral part of the acquired assets.

Investment properties (IAS 40)

Investment properties are real-estate properties held for purposes of leasing within the context of operating leases or long-term capital appreciation (or both).

Investment properties represent the majority of the Group's portfolio. The buildings occupied or operated by Covivio group employees - owner-occupied buildings - are recognised under tangible fixed assets (office properties occupied by employees, spaces used for own Flex Office, hotel real estate managed by the operating properties business).

Under the option offered by IAS 40, investment properties are assessed at their fair value. Changes in fair value are recorded in the income statement. Investment property is not amortised.

Valuation missions are carried out in accordance with the Code of Ethics for SIICs, the Real Estate Valuation Charter and the recommendations of the COB/CNCC working group chaired by Mr Barthès de Ruyter and the international plan in accordance with the International Valuation Standards Council (IVSC) and those of the 2014 Red Book of the Royal Institution of chartered Surveyors (RICS).

The real-estate portfolio directly held by the Group was appraised in full at 31 December 2023 by independent real-estate experts including BNP Real Estate, JLL, CBRE, Cushman, CFE, MKG, REAG and HVS.

Assets were estimated at values excluding and/or including duties, and rents at market value. Estimates were made using the comparative method, the rent capitalisation method and the discounted future cash flows method.

The assets are recognised at their net market value.

―

For France, Italy and Germany Offices, the valuations are primarily performed according to two methods:

―

the yield (or income capitalisation) method:

This approach consists of capitalising an annual income, which, in general, is rental income from occupied assets, with the possible impact of a reversion potential, and market rent for vacant assets, taking into account the time needed to find new tenants, any renovation work and other costs;

―

the discounted cash flow (DCF) method:

This method consists of determining the useful value of an asset by discounting the forecast cash flows that it is likely to generate over a given time frame. The discount rate is determined on the basis of the risk-free rate plus a risk premium associated with the asset and defined by comparison with the discount rates applied to cash flows generated by similar assets.

―

For Hotels in Europe, the methodology changes according to the type of assets:

―	the rent capitalisation method is used for restaurants and Club Med holiday villages;
―	the DCF method is used for hotels (including the revenue forecasts determined by the appraiser) and Sunparks holiday villages.

―

For German Residential, the fair value determined corresponds to:

―	a block value for assets for which no sales strategy has been developed or which have not been marketed;
―	an occupied retail value for assets on which at least one preliminary sale agreement has been made before the reporting date.

The valuation method used was the discounted cash flow method.

The resulting values are also compared with the initial yield rate, the monetary values per square metre of comparable transactions and transactions carried out by the Group.

IFRS 13 "fair value measurement" establishes a fair value hierarchy that categorises the inputs used in valuation techniques into three levels:

―	level 1: the valuation refers to quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
―	level 2: the valuation refers to valuation methods using inputs that are observable for the asset or liability, either directly or indirectly, in an active market;
―	level 3: the valuation refers to valuation methods using inputs that are unobservable in an active market.

The fair value measurement of investment properties requires the use of different valuation methods using unobservable or observable inputs to which some adjustments have been applied. Accordingly, the Group's portfolio is mainly categorised as level 3 according to the IFRS 13 fair value hierarchy.

The appraisals of real estate assets recognised as investment properties were carried out taking into account the inflationary macroeconomic environment, a source of uncertainty on cost forecasts, and climate risk based on current practices and Covivio's carbon trajectory.

The context of the crisis has created uncertainty about the estimates used for appraisal values. These estimates include assumptions about resumption of activity (reopening of hotels and gradual return of visitors, use of office buildings, etc.) which may not be realised.

Investment properties under development (IAS 40)

Assets under construction are recognised according to the general fair-value principle, except where it is not possible to determine this fair value on a reliable and ongoing basis. In such cases, the asset is carried at cost.

As a result, development programmes and extensions or remodelling of existing assets that are not yet commissioned are recognised at their fair value and are treated as investment properties whenever the administrative and technical fair-value reliability criteria - i.e. administrative, technical and commercial criteria - are met.

In accordance with revised IAS 23, the borrowing cost during a period of construction and renovation is included in the cost of the assets. The capitalised amount is determined on the basis of fees paid for specific borrowings and, where applicable, for financing from general borrowings based on the weighted average rate of the particular debt.

Right-of-use (IFRS 16)

In application of IFRS 16, when a movable or immovable asset is held under a lease, the lessee is required to recognise a right-of-use asset and a rental liability, at amortised cost.

Right-of-use assets are included in the items under which the corresponding underlying assets are presented, if they belonged thereto, namely the items operating properties, other tangible fixed assets and investment properties.

The lessee depreciates the right-of-use on a straight-line basis over the term of the lease, except for rights relating to investment properties, which are measured at fair value.

Tangible fixed assets (IAS 16)

Pursuant to the preferred method proposed by IAS 16, operating properties (head offices and Flex Office business) and managed hotels under the operating properties business line (occupied or operated by Group employees) are carried at historical cost less accumulated depreciation and any potential impairment. They are amortised over their expected useful life according to a component-based approach.

Operating properties are depreciated according to their useful life:

Buildings	50 to 60 years
General installations and layout of the buildings	10 to 30 years
Equipment and furniture	3 to 20 years

If the appraisal value of the operating properties is lower than the net book value, an impairment loss is recognised. For hotels under management, impairment is recognised first on the value of the fund, then on the value of the tangible fixed assets.

Non-current assets held for sale (IFRS 5)

In accordance with IFRS 5, when Covivio decides to dispose of an asset or group of assets, it classifies them as assets held for sale if:

―	the asset or group of assets is available for immediate sale in its current condition, subject only to normal and customary conditions for the sale of such assets;
―	its sale is likely within one year and marketing for the property has been initiated.

For the Covivio group, only assets corresponding to the above criteria or for which a sale commitment has been signed are classified as assets held for sale.

If a sale commitment exists on the account closing date, the price of the commitment net of expenses constitutes the fair value of the asset held for sale.

4.2.5.1.2 Table of changes in fixed assets

(In € thousand)	31/12/2022	Scope change	Increase/ Charges	Disposal/ Reversals of provisions	Change in fair value	Transfers
Goodwill	120,102	0	-2,746 ⁽¹⁾	0	0	0
Intangible fixed assets	17,194	0	4,111	-2,057	0	0
Gross amounts	37,932	-29	6,306	-2,958	0	-1,834
Depreciation	-20,738	29	-2,195	901	0	1,834
Tangible fixed assets	1,580,335	1	-20,892	-1,172	0	33,370
Operating properties	1,471,533	1	-42,483	-872	0	38,121
Gross amounts	1,900,374	1	15,057	-14,810	0	37,655 ⁽³⁾
Depreciation	-428,841	0	-57,540	13,938	0	466
Other tangible fixed assets	40,332	0	-3,005	-276	0	2,928
Gross amounts	195,819	0	7,531	-17,606	0	2,832
Depreciation	-155,487	0	-10,536	17,330	0	96
Fixed assets in progress	68,470	0	24,596 ⁽²⁾	-24	0	-7,679
Gross amounts	68,470	0	28,002	-24	0	-7,679
Depreciation	0	0	-3,406	0	0	0
Investment properties	22,964,769	917	449,793	-371,140	-2,375,952	-502,947
Operating properties	21,391,114	917	220,310	-183,733	-2,122,445	-280,761
Investment properties under development	1,573,655	0	229,483	-187,407	-253,507	-222,186
Assets held for sale	259,400	0	2,901	-261,308	-61,390	387,046
Assets held for sale	259,400	0	2,901	-261,308	-61,390	387,046
of which other assets held for sale	0	0	0	0	0	6,465 ⁽⁴⁾
TOTAL	24,941,801	918	433,167	-635,677	-2,437,342	-82,532

(In € thousand)	Change in exchange rate	31/12/2023
Goodwill	0	117,356
Intangible fixed assets	1	19,249
Gross amounts	1	39,418
Depreciation	-0	-20,169
Tangible fixed assets	1,797	1,593,439
Operating properties	1,798	1,468,098
Gross amounts	1,820	1,940,097
Depreciation	-22	-471,999
Other tangible fixed assets	-0	39,978
Gross amounts	-3	188,572
Depreciation	3	-148,593
Fixed assets in progress	-0	85,363
Gross amounts	-0	88,769
Depreciation	0	-3,406
Investment properties	21,031	20,186,471
Operating properties	21,031	19,046,433
Investment properties under development	0	1,140,038
Assets held for sale	0	326,649
Assets held for sale	0	326,649
of which other assets held for sale	0	6,465
TOTAL	22,829	22,243,165

⁽¹⁾ The goodwill of hotels run as operating properties decreased by €2.7 million following the decrease in appraisal values leading to the impairment of an asset in France.

⁽²⁾ Work carried out on France Offices assets (€18 million) and on Hotels in Europe assets (€6.6 million). Fixed assets in progress also include advanced payments paid on equipment acquisitions in France Offices (€2 million).

⁽³⁾ Including €32 million for the transfer of the N2 Zoku hotel from the "operating properties" line.

⁽⁴⁾ Reclassification of €6.5 million of other assets at a Hotels in Europe company (see Section 4.2.4.4).

The portfolio of hotels valued at cost held as operating properties totalled €1,212 million at 31 December 2023. In accordance with IAS 16, they are recognised in the "Tangible fixed assets" line.

The line "Disbursements related to acquisitions of tangible and intangible fixed assets" in the statement of cash flows (-€484.5 million) corresponds mainly to investments excluding the impact of depreciation, amortisation and indexation of leases (-€509.6 million) restated for advances and advanced payments for work on investment properties under development already paid (+ €25.3 million), corrected for the change in trade payables on fixed assets (-€28.1 million) and the restatement of step rentals and rent-free periods for (+€28.3 million).

The "Proceeds relating to the disposal of tangible fixed assets and intangible assets" line in the Statement of cash flows (+ €627.2 million) primarily corresponds to income from disposals as presented in Section 4.2.6.3 "Income from asset disposals" (+ €596.5 million), and to the proceeds from the disposal of assets in inventory (+€0.2 million), restated for the change in receivables on asset disposals (+€21.6 million) and down payments on disposals (+€8.9 million).

4.2.5.1.3 Investment properties and assets held for sale

Consolidated portfolio of assets at 31 December 2023 (in €M)

(In € thousand)	31/12/2022	Scope change	Increase	Disposal	Change in fair value	Transfers
Investment properties	22,964,769	917	449,793	-371,140	-2,375,952	-502,947
Operating properties	21,391,114	917	220,310	-183,733	-2,122,445	-280,761
France Offices	4,736,349	0	42,128	-145,239	-670,598	-119,036
Italy Offices	2,539,462	0	8,378	-35,034	-82,506	-48,660
Hotels in Europe	4,937,208	917	23,598	-3,460	-196,348	-127,701
German Residential	8,209,194	0	141,365	0	-1,012,035	-16,890
Germany Offices	968,901	0	4,841	0	-160,958	31,526
Investment properties under development ⁽¹⁾	1,573,655	0	229,483	-187,407	-253,507	-222,186
France Offices	787,530	0	61,830	-187,407	-130,014	-200,063
Italy Offices	210,597	0	88,774	0	-2,601	2,677
Hotels in Europe	0	0	0	0	0	0
German Residential	22,511	0	11,352	0	0	5,166
Germany Offices	553,017	0	67,527	0	-120,892	-29,966
Assets held for sale	259,400	0	2,901	-261,308	-61,390	387,046
France Offices	175,856	0	2,901	-167,175	-53,466	156,834
Italy Offices	28,742	0	0	-28,742	-9,284	51,270
Hotels in Europe	42,946	0	0	-17,000	-1,186	137,155
German Residential	11,554	0	0	-48,301	2,546	41,787
Germany Offices	0	0	0	0	0	0
Other	302	0	0	-90	0	0
TOTAL	23,224,169	917	452,694	-632,448	-2,437,342	-115,901

(In € thousand)	Change in exchange rate	31/12/2023
Investment properties	21,031	20,186,471
Operating properties	21,031	19,046,433
France Offices	0	3,843,604
Italy Offices	0	2,381,640
Hotels in Europe	21,031	4,655,245
German Residential	0	7,321,634
Germany Offices	0	844,310
Investment properties under development ⁽¹⁾	0	1,140,038
France Offices	0	331,876
Italy Offices	0	299,447
Hotels in Europe	0	0
German Residential	0	39,029
Germany Offices	0	469,686
Assets held for sale	0	326,649
France Offices	0	114,950
Italy Offices	0	41,986
Hotels in Europe	0	161,915
German Residential	0	7,586
Germany Offices	0	0
Other	0	212
TOTAL	21,031	20,513,120

⁽¹⁾ The increase in investment properties under development column includes capitalised works and operating expenses for €205.5 million and financial interest for €24 million (note 4.2.5.1.4).

The amounts in the "disposal" column correspond to the appraisal values published on 31 December 2022 or values of preliminary sales agreements signed in 2022.

Breakdown of transfers of -€115.9 million:

The "transfers" column corresponds mainly to the designation at 31 December 2023 of 5 real estate projects in France Offices as real estate trading properties for -€122 million, the transfer of the

N2 Zoku hotel to operating properties for -€32 million, the transfer of a head office in Milan to investment property for +€2.7 million, the transfer in German Residential of real estate development inventories to assets held for sale for +€30.1 million, the indexation of construction leases for +€15 million and the reclassification of the right to use an asset held for sale in Spain for -€5.6 million.

4.2.5.1.4 Development portfolio

Investment properties under development relate to construction or refurbishment programmes that fall within the application of IAS 40 (revised).

Changes in assets under development

(In € thousand)	31/12/2022	Acquisitions and works	Capitalised interest	Change in fair value	Transfers and disposals	Change of scope
France Offices	787,530	52,444	9,386	-130,014	-387,470	0
Italy Offices	210,597	83,028	5,746	-2,601	2,677	0
Germany Offices	553,017	59,459	8,068	-120,892	-29,966	0
German Residential	22,511	10,746	606	0	5,166	0
CONSOLIDATED TOTAL	1,573,655	205,677	23,806	-253,507	-409,593	0

(In € thousand)	31/12/2023
France Offices	331,876
Italy Offices	299,447
Germany Offices	469,686
German Residential	39,029
CONSOLIDATED TOTAL	1,140,038

The "transfers and disposals" column includes the delivery of five assets for -€415 million (three in France Offices, one in Germany Offices and one in Germany Residential), the sale of an office building under redevelopment in the 8 ^th arrondissement of Paris (-€196.2 million) and the signature of a property development contract.

Seven assets (including four in France Offices and three in German Residential) supply the pipeline with properties under development, i.e. a transfer of +€151.7 million.

Four assets in France Offices under development in early 2023 were transferred to property development assets at 31 December 2023.

Breakdown of transfers of €409 million

4.2.5.1.5 Appraisal parameter

The Group has not identified the best use of an asset as being different from its current use. Consequently, the application of IFRS 13 did not lead to a modification of the assumptions used for the valuation of assets.

In accordance with IFRS 13, the tables below provide details by operating sector of the ranges of unobservable inputs by business segment (level 3) used by the real-estate appraisers:

France, Italy and Germany Offices

Grouping of similar assets	Level	Asset value (in €M)	Yield ⁽¹⁾ (min-max)	Yield ⁽¹⁾ (weighted average)	Discounted cash flow rate	Discounted cash flow rate (weighted average)
Paris Centre West	Level 3	799	3.4% - 4.8%	3.9%	4.8% - 5.5%	5.3%
North Eastern Paris	Level 3	612	4.3% - 8.0%	5.7%	5.8% - 8.3%	6.6%
Southern Paris	Level 3	173	3.5% - 4.1%	3.9%	5.3% - 5.5%	5.4%
Western Crescent	Level 3	848	4.7% - 5.8%	5.2%	5.3% - 7.0%	6.2%
Inner rim	Level 3	898	5.5% - 7.5%	6.1%	6.3% - 9.0%	7.1%
Outer rim	Level 3	30	7.8% - 11.0%	8.4%	8.5% - 10.3%	9.0%
Total Paris Regions		3,360	3.4% - 11.0%	-	4.8% - 10.3%	-
Major Regional Cities	Level 3	467	5.0% - 8.0%	5.6%	6.3% - 8.5%	6.6%
Region	Level 3	16	6.0% - 6.0%	6.0%	4.5% - 6.3%	6.5%
Total Regions		483	5.0% - 8.0%		4.5% - 8.5%
Total in operation		3,844	-	-	-	-
Development portfolio		332	-	-	-	-
Other assets held for sale		115	-	-	-	-
TOTAL FRANCE OFFICES		4,290	-	-	-	-
Milan	Level 3	1,705	2.1% - 14.0%	5.9%	5.4% - 9.3%	6.9%
Rome	Level 3	174	3.5% - 12.0%	6.1%	6.8% - 8.3%	7.4%
Other	Level 3	544	5.5% - 11.4%	7.8%	7.8% - 9.9%	8.3%
Total in operation		2,424	-	-	-	-
Development portfolio	Level 3	299	-	-	-	-
TOTAL ITALY OFFICES		2,723	-	-	-	-
Berlin	Level 3	49	4.4% - 4.4%	4.4%	6.8% - 6.8%	6.8%
Düsseldorf	Level 3	41	5.3% - 5.3%	5.3%	5.5% - 5.5%	5.5%
Frankfurt	Level 3	411	4.3% - 5.5%	5.1%	5.6% - 7.2%	6.2%
Hamburg	Level 3	251	4.7% - 6.1%	5.0%	5.5% - 5.9%	5.6%
Munich	Level 3	77	1.9% - 3.7%	2.9%	5.7% - 7.2%	5.8%
Total in operation		828	-	-	-	-
Development portfolio	Level 3	470	-	-	-	-
Use rights	Level 3	16	-	-	-	-
TOTAL GERMAN OFFICES		1,314	-	-	-	-
TOTAL OFFICES		8,328	-	-	-	-
(1) Yield excluding duties

Hotels in Europe

Grouping of similar assets	Level	Asset value (in €M)	Yield ⁽¹⁾ (min-max)	Yield ⁽¹⁾ (weighted average)	Discounted cash flow rate	Discounted cash flow rate (weighted average)
Germany	Level 3	627	4.6% - 6.0%	5.3%	5.1% - 7.5%	6.5%
Belgium	Level 3	205	6.1% - 8.8%	7.5%	8.4% - 10.7%	9.6%
Spain	Level 3	636	4.2% - 7.4%	5.3%	6.1% - 9.3%	7.3%
France	Level 3	1,668	4.4% - 8.3%	5.2%	6.0% - 8.8%	7.0%
Netherlands	Level 3	159	5.0% - 6.3%	5.6%	7.0% - 8.3%	7.6%
United Kingdom	Level 3	662	4.5% - 6.5%	5.1%	6.5% - 8.5%	7.1%
Other	Level 3	559	5.6% - 7.5%	6.1%	8.0% - 9.4%	8.3%
Hotel lease properties	Level 3	4,516	4.2% - 8.8%	5.5%	5.1% - 10.7%	7.3%
Retail	Level 3	51	7.6% - 8.0%	7.7%	9.5% - 10.4%	9.7%
TOTAL IN INVESTMENT PROPERTIES, EXCLUDING DEVELOPMENT PORTFOLIO AND RIGHT-OF-USE ASSETS		4,567	-	-	-	-
Use rights	Level 3	243	-	-	-	-
Other assets held for sale		6	-	-	-	-
TOTAL HOTELS IN EUROPE		4,817	-	-	-	-
(1) Yield excluding duties

German Residential

Grouping of similar assets	Level	Asset value ⁽¹⁾ (in €M)	Yield ⁽²⁾ (min-max) Total portfolio	Yield (weighted average)	Discounted cash flow rate	Value average (in €/m2)
Duisburg	Level 3	328	3.3% - 5.4%	3.9%	4.8% - 6.9%	1,651
Essen	Level 3	782	3.2% - 6.3%	3.7%	4.6% - 7.8%	1,985
Mülheim	Level 3	223	3.4% - 5.7%	4.0%	4.7% - 6.9%	1,710
Oberhausen	Level 3	198	3.8% - 5.6%	4.1%	4.9% - 6.9%	1,435
Datteln	Level 3	158	2.3% - 5.0%	3.5%	3.8% - 6.5%	1,376
Berlin	Level 3	4,237	2.2% - 6.3%	3.2%	4.2% - 8.3%	3,146
Düsseldorf	Level 3	200	2.8% - 5.5%	3.4%	4.6% - 7.2%	2,844
Dresden	Level 3	452	2.5% - 4.8%	2.9%	3.8% - 6.3%	2,291
Leipzig	Level 3	132	2.6% - 4.8%	3.1%	4.1% - 6.3%	1,894
Hamburg	Level 3	536	2.4% - 4.4%	3.0%	4.2% - 6.2%	3,592
Other	Level 3	142	3.1% - 4.5%	3.8%	4.8% - 5.8%	2,014
TOTAL GERMAN RESIDENTIAL		7,387	2.2% - 6.3%	3.3%	3.8% - 8.3%	2,547

⁽¹⁾ Including an operating property in Oberhausen and Berlin at market value.

⁽²⁾ Potential yield assumed excluding duties (actual rents/appraisal values excluding duties).

The "Berlin" line is detailed below:

Grouping of similar assets	Level	Asset value (in €M)	Yield ⁽¹⁾ (min-max) Total portfolio	Yield (weighted average)	Discounted cash flow rate	Value average (in €/m2)
Mitte	Level 3	762	2.2% - 5.1%	3.3%	4.2% - 7.1%	3,265
Neukölln	Level 3	620	2.6% - 4.3%	3.0%	4.6% - 6.2%	3,002
Tempelhof-Schöneberg	Level 3	545	2.4% - 6.3%	3.1%	4.4% - 8.3%	3,242
Pankow	Level 3	536	2.6% - 4.4%	3.3%	4.6% - 6.4%	3,199
Steglitz-Zehlendorf	Level 3	381	2.6% - 4.7%	3.0%	4.4% - 6.7%	3,213
Friedrichshain-Kreuzberg	Level 3	359	2.4% - 4.2%	3.0%	4.3% - 6.2%	3,293
Charlottenburg-Wilmersdorf	Level 3	305	2.5% - 4.4%	3.2%	4.4% - 6.4%	3,662
Reinickendorf	Level 3	142	2.4% - 4.2%	3.1%	4.4% - 6.2%	2,722
Spandau	Level 3	176	3.0% - 4.4%	3.4%	5.0% - 6.4%	2,574
Treptow-Köpenick	Level 3	167	2.7% - 4.7%	3.1%	4.7% - 6.7%	3,115
Berlin outer region	Level 3	124	3.0% - 4.9%	3.9%	4.4% - 6.5%	2,720
Lichtenberg	Level 3	68	2.8% - 4.4%	3.1%	4.7% - 6.4%	2,919
Marzahn-Hellersdorf	Level 3	47	2.8% - 3.8%	3.1%	5.0% - 5.8%	2,643
Non-capitalized development costs	Level 3	7	N/A	N/A	N/A	N/A
TOTAL BERLIN		4,237	2.2% - 6.3%	3.2%	4.2% - 8.3%	3,146

⁽¹⁾ Potential yield assumed excluding duties (actual rents/appraisal values excluding duties).

Impact of changes in the yield rate on changes in the fair value of real estate assets, by operating segment

(In € million)	Yield ⁽²⁾	Yield rate -50 bps	Yield rate +50 bps
France Offices	5.5%	395.9	-329.9
Italy Offices	5.6%	237.6	-198.7
Hotels in Europe	5.9%	422.9	-356.8
German Residential	4.1%	1,017.9	-796.7
Germany Offices	5.2%	88.1	-72.6
TOTAL ⁽¹⁾	5.1%	2,162.4	-1,754.7

⁽¹⁾ Including assets held by equity affiliates, excl. operating property assets.

⁽²⁾ Yield on operating portfolio - excl. duties.

―	If the yield rate excluding duties drops 50 bps (-0.5 point), the market value excluding taxes of the real estate assets will increase by €2,162 million.
―	If the yield rate excluding duties increases 50 bps (+0.5 point), the market value excluding taxes of the real-estate assets will decrease by -€1,754 million.

4.2.5.2 Financial assets

4.2.5.2.1 Accounting principles

Other financial assets

Other financial assets consist of investment-fund holdings, which cannot be classified as cash or cash equivalents.

These securities are recognised upon acquisition at cost plus transaction costs. They are then recognised at fair value in the income statement on the reporting date.

The fair value is arrived at on the basis of recognised valuation techniques (reference to recent transactions, discounted cash flows, etc.). Some securities that cannot be reliably measured at fair value are recognised at acquisition cost.

Non-consolidated securities are valued at their fair value, and changes in value are recorded either in equity or in the income statement, depending on the option chosen by the Group for each of these securities in accordance with IFRS 9.

Dividends received are recognised when they have been approved by vote.

Loans

At each reporting date, loans are recorded at their amortised cost. Moreover, impairment is recognised and recorded on the income statement when there is an objective indication of impairment as a result of an event occurring after the initial recognition of the asset.

4.2.5.2.2 Table of financial assets

(In € thousand)	31/12/2022	Increase	Decrease	Fair value	Scope change	Transfers
Ordinary loans ⁽¹⁾	96,825	2,076	-11,275	0	0	11,798
Total loans	96,825	2,076	-11,275	0	0	11,798
Advanced payments and deposits on acquisition of securities ⁽²⁾	957	1,573	0	0	0	0
Non-consolidated securities ⁽²⁾	15,798	2,365	-2,389	0	0	-253
Receivables on financial assets ⁽²⁾	292	-3	0	0	0	17
NET TOTAL	113,872	6,011	-13,664	0	0	11,562

(In € thousand)	Change in exchange rate	31/12/2023
Ordinary loans ⁽¹⁾	1	99,425
Total loans	1	99,425
Advanced payments and deposits on acquisition of securities ⁽²⁾	0	2,530
Non-consolidated securities ⁽²⁾	-0	15,521
Receivables on financial assets ⁽²⁾	0	306
NET TOTAL	1	117,782

⁽¹⁾ Ordinary loans include subordinated loans to equity affiliates (€93.4 million) and guarantee deposits (+€6.0 million) and loans to employees. The transfer column concerns the reclassification of loans in the IRIS portfolio of Hotels in Europe (-€6.7 million) as short-term loans, the reclassification of the Euromed portfolio (+€28.6 million) as long-term loans, and the Lenovilla capital increase by capitalisation of its loan (-€10 million).

⁽²⁾ Other financial assets break down as follows:
- advanced payments and deposits on acquisitions of securities: these correspond to a deposit to acquire the shares of a company that will hold a B&B Hotels asset in Portugal;
- non-consolidated securities in German Residential and Italy Offices;
- receivables on financial assets.

4.2.5.3 Investments in associates and joint ventures

4.2.5.3.1 Accounting principles

Investments in equity affiliates and joint ventures are recognised by the equity method. According to this method, the Group's investment in the equity affiliate or the joint venture is initially recognised at cost, increased or reduced by the changes, subsequent to the acquisition, in the share of the net assets of the affiliate.

The goodwill related to an equity affiliate or joint venture is included in the book value of the investment, if it is not impaired. The share in the earnings for the period is shown in the line item "share in income of equity affiliates".

The financial statements of associates and joint ventures are prepared for the same accounting period as for the parent company, and adjustments are made, where relevant, to adapt the accounting methods to those of the Covivio group.

4.2.5.3.2 Table of investments in associates and joint ventures

(In € thousand)	% ownership	Operating segment	Country	31/12/2022	31/12/2023	Changes
Lenovilla (New Vélizy)	50.10%	France Offices	France	82,106	61,709	-20,397
Euromarseille (Euromed)	50.00%	France Offices	France	33,877	28,618	-5,259
Cœur d'Orly (Askia and Belaïa)	50.00%	France Offices	France	38,366	28,420	-9,946
Fondo Porta di Romana and others	32.02%	Italy Offices	Italy	35,018	37,996	2,978
Zabarella 2023 Srl	64.74%	Italy Offices	Italy	0	13,584	13,584
Iris Holding France	19.90%	Hotels in Europe	Belgium, Germany	20,263	21,446	1,182
OPCI IRIS Invest 2010	19.90%	Hotels in Europe	France	32,844	32,309	-534
OPCI Camp Invest	19.90%	Hotels in Europe	France	24,978	21,013	-3,965
Dahlia	20.00%	Hotels in Europe	France	21,746	21,162	-584
OPCI Oteli, Jouron, Kombon	31.15% and 33.33%	Hotels in Europe	France, Belgium	111,860	108,660	-3,199
TOTAL				401,058	374,918	-26,140

(In € thousand)	Of which share of net income	Of which distribution and change in scope
Lenovilla (New Vélizy)	-20,981	584
Euromarseille (Euromed)	-5,259	0
Cœur d'Orly (Askia and Belaïa)	-7,309	-2,637
Fondo Porta di Romana and others	1,486	1,492
Zabarella 2023 Srl	-281	13,865
Iris Holding France	1,180	2
OPCI IRIS Invest 2010	-349	-185
OPCI Camp Invest	36	-4,001
Dahlia	-584	0
OPCI Oteli, Jouron, Kombon	-2,303	-897
TOTAL	-34,364	8,224

The investments in equity affiliates at 31 December 2023 amounted to €375 million, compared with €401 million as at 31 December 2022, i.e. a decrease of -€26 million.

The change for the period is mainly due to net income for the period (-€34.4 million), the distribution of dividends (-€17.1 million), offset by the capital increase of Lenovilla by capitalisation of its intra-group loan (+€10 million) and by the signature in June 2023 of a partnership with Carrron Cav. Angelo SpA as part of the restoration project of a building in Padua, Italy (+€13.9 million).

4.2.5.3.3 Breakdown of shareholdings in the main associates and joint ventures

Indirect ownership	Cœur d'Orly	Group Euromed	SCI Lenovilla (New Vélizy)	Fondo Porta di Romana	Zabarella 2023
Covivio	50.0%	50.0%	50.09%	32.02%	64.74%
Non-Group third parties	50.0%	50.0%	49.91%	67.98%	35.26%
Aéroports de Paris	50.0%
Crédit Agricole Assurances		50.0%	49.91%
Carron Cav. Angelo SpA					35.26%
COIMA				64.73%
Prada				3.25%
TOTAL	100%	100%	100%	100%	100%

Indirect ownership	Iris Holding France	OPCI Iris Invest 2010	OPCI Campinvest	SCI Dahlia	OPCI Otelli (Phoenix)	Konbon (Phoenix)
Covivio Hotels	19.9%	19.9%	19.9%	20.0%	31.2%	33.3%
Non-Group third parties	80.1%	80.1%	80.1%	80.0%	68.9%	66.7%
Sogecap					31.2%	33.3%
Caisse de dépôt et consignation					37.7%	33.3%
Predica	80.1%	80.1%	68.8%	80.0%
Pacifica			11.3%
TOTAL	100%	100%	100%	100%	100%	100%

Indirect ownership	Jouron (Phoenix)
Covivio Hotels	33.3%
Non-Group third parties	66.7%
Sogecap	33.3%
Caisse de dépôt et consignation	33.3%
Predica
Pacifica
TOTAL	100%

4.2.5.3.4 Main financial information of associates and joint ventures

(In € thousand)	Asset name	Total balance sheet	Total non-current assets	Cash and cash equivalents	Total non-urrent liabilities excluding financial debt	Total current liabilities excluding financial debt
Cœur d'Orly (Askia and Belaïa)	Cœur d'Orly	153,257	136,703	7,894	1,844	9,048
Lenovilla (New Vélizy)	New Vélizy and extension	259,876	242,265	13,292	0	1,133
Euromarseille (Euromed)	Euromed Centre	119,710	106,466	10,121	610	3,653
Fondo Porta di Romana	Milan, Italy	102,660	93,719	192	0	5,908
Iris Holding France	Hotels AccorHotels	237,622	192,424	42,309	23,149	1,745
OPCI IRIS Invest 2010	Hotels AccorHotels	271,143	238,959	29,570	0	1,404
OPCI Camp Invest	Campanile Hotels	160,706	129,258	24,188	0	674
Dahlia	Hotels AccorHotels	181,818	165,604	13,557	0	362
OPCI Oteli, Jouron, Kombon	Hotels AccorHotels	527,353	488,109	37,822	19,089	1,758

(In € thousand)	Financial payables	Rental income	Cost of the net financial debt	Net income consolidated
Cœur d'Orly (Askia and Belaïa)	85,526	8,864	-966	-14,618
Lenovilla (New Vélizy)	135,550	13,683	-1,380	-41,885
Euromarseille (Euromed)	58,210	6,640	-146	-10,518
Fondo Porta di Romana	58,799	0	539	1,483
Iris Holding France	104,816	13,444	-2,800	5,931
OPCI IRIS Invest 2010	107,381	17,399	-2,029	-1,754
OPCI Camp Invest	54,440	11,163	-396	179
Dahlia	75,644	9,479	-2,283	-2,919
OPCI Oteli, Jouron, Kombon	165,408	30,477	-8,306	-6,807

4.2.5.4 Deferred taxes at closing

(In € thousand)	Balance sheet as at 31/12/2022	P&L change	Transfer	Currency translation differences	Change in shareholders' equity	Balance sheet at 31/12/2023
DTA on temporary differences	13,666	2,101	4,235	-222	-455	19,326
DTA other activities	0	-8,328	5,449	0	0	-2,879
DTA on JV of buildings	48,629	18,254	-56,039	0	0	10,844
DTA on JV IFT	166	550	-704	0	0	12
DTA on tax loss carryforwards	94,802	-3,901	-47,902	6	0	43,005
	157,263	8,676	-94,962	-216	-455	70,307
DTA/DTL offset	-70,884		72,892	-	-	2,008
TOTAL DTA	86,379	8,676	-22,070	-216	-455	72,315

(In € thousand)	Balance sheet as at 31/12/2022	P&L change	Transfer	Currency translation differences	Change in shareholders' equity	Balance sheet at 31/12/2023
DTL on temporary differences	18,970	-11,267	74,876	246	-499	82,326
DTL other activities	0	-21,277	25,274	0	0	3,997
DTL on JV of buildings	1,338,229	-201,338	-188,648	11	917	949,170
DTL on JV IFT	33,719	-12,318	-3,870	0	51	17,582
DTL on tax loss carryforwards	0	1,051	-2,594	0	0	-1,543
	1,390,918	-245,150	-94,962	257	469	1,053,532
DTA/DTL offset	-70,884	-	72,892	-	-	2,008
TOTAL DTL	1,320,034	-245,150	20,070	257	469	1,053,540
NET TOTAL	-1,233,655	253,826	0	-473	-923	-981,225
Impact on the income statement		253,826

At 31 December 2023, the consolidated deferred tax position showed a deferred tax asset of €72 million (versus €86 million as at 31 December 2022) and a deferred tax liability of €1,053 million (versus €1,320 million as at 31 December 2022).

The primary contributors to the net balance of deferred tax liabilities are:

―	German Residential: €793 million;
―	Hotels in Europe: €186 million;
―	Germany Offices: €4 million.

The decrease in net deferred tax liabilities (-€253 million) is mainly due to the impact of unrealised taxes relating to the decline in appraisal values, particularly in Germany (-€166 million), Hotels in Europe (-€48 million) and to decreases in the value of derivatives in Germany (-€12 million).

In addition, in order to opt for the UK REIT exemption from 1 January 2024 for 9 of the 12 assets held in the United Kingdom, which will allow an income tax exemption subject to the distribution of 90% of rental income, an intra-group restructuring was carried out at the end of 2023, having generated a reversal of €32.3 million in deferred taxes on real estate assets.

The impact on net income is detailed in Section 4.2.6.9.2.

In accordance with IAS 12, deferred tax assets and liabilities are offset for each tax entity when they involve taxes paid to the same tax authority.

The non-recognised tax loss carryforwards, calculated at the standard rate, amounted to €1,744.1 million as detailed below:

(In € thousand)	Non-recognised DTA	Non-recognised tax loss carryforwards
France Offices	77,356	299,480
Italy Offices	24,278	121,392
Hotels in Europe	183,865	702,926
German Residential	54,175	342,340
Germany Offices	43,983	277,931
TOTAL	383,657	1,744,069

4.2.5.5 Short-term loans and receivables

(In € thousand)	31/12/2022	Change of scope	Increase	Decrease	Var. fair value	Transfers
Short-term loan	41,371	0	33,693	-12,675	0	-21,800
NET TOTAL	41,371	0	33,693	-12,675	0	-21,800

(In € thousand)	31/12/2023
Short-term loan	40,589
NET TOTAL	40,589

The balance at 31 December 2023 includes €31.6 million in accrued interest on derivatives, €6.8 million in loans to shareholders outside the Group and €2.2 million in accrued interest on loans.

4.2.5.6 Inventories and work-in-progress

4.2.5.6.1 Accounting principles related to inventories

Inventories are composed of two classification types: property trading (mainly in Italy, purchase/sale) and real-estate development (housing units and offices). They are assessed at cost.

Inventories are intended to be sold during the normal course of business. They are recorded at acquisition price and, as applicable, are depreciated in relation to the sale value (independent appraisal value).

4.2.5.6.2 Inventories and work-in-progress

(In € thousand)	31/12/2023 net	31/12/2022 net	Change
Real-estate company trading properties	1,016	15,619	-14,603
Miscellaneous inventories (raw materials, goods)	2,548	2,423	125
France Offices	176,314	50,991	125,323
German Residential	127,648	194,999	-67,351
Real estate trading properties	303,962	245,990	57,972
TOTAL INVENTORIES AND WORK-IN-PROGRESS	307,526	264,032	43,494

The balance sheet item "Inventories and work-in-progress" groups together inventories from the real-estate development business (€304 million) and from the trading business (€1 million).

In France, real-estate development inventories consist exclusively of projects to transform office buildings or land reserves into residential units. When a development margin can be generated (depending on the percentage of completion and marketing) the stock decreases accordingly. As part of the sale of the fully pre-let property under redevelopment in the 8 ^th arrondissement of Paris, the Group signed a real estate development contract (-€9.1 million in works invoices sold). The increase (+€125 million) is linked to the works (+€66.6 million), sales for the year (-€62 million), the transfer at 31 December of five France Offices real estate trading properties (+€122 million).

The decrease in inventories in German Residential (-€67 million) is linked the disposal of development assets (-€67 million) and reclassification of several projects as investment properties held for sale (-€30.1 million) and to work on development assets (+€31 million).

4.2.5.7 Trade receivables

4.2.5.7.1 Accounting principles related to trade receivables and receivables from hotels under operation

The trade receivables are mainly comprised of receivables from simple lease transactions and receivables of hotels under operation. These items are measured at amortised cost. In the event that the recoverable value is lower than the net book value, the Group may be required to account for an impairment charge through profit or loss.

The usual impairment rules have been tightened in the context of the Covid-19 crisis. For unpaid bills relating to this crisis, impairments were recorded depending on the size of the tenant, its activity and the lease negotiations in progress.

Receivables from operating lease transactions

For operating-lease receivables, a provision for impairment is made at the first non-payment. The impairment rates applied by Covivio group are as follows:

―	no impairment provision is recorded for existing or vacated tenants whose receivables are less than three months overdue;
―	50% of the total amount of receivables for existing tenants whose receivables are between three and six months overdue;
―	100% of the total amount of receivables for existing tenants whose receivables are more than six months overdue;
―	100% of the total amount of receivables for vacated tenants whose receivables are more than three months overdue.

The receivables and theoretical impairments arising from the rules above are reviewed on a case-by-case basis in order to factor in any specific situations.

Receivables of hotels under operation

Receivables of hotels under operation are impaired according to payment deadlines.

The receivables and theoretical impairments arising from the rules above are reviewed on a case-by-case basis in order to factor in any specific situations.

4.2.5.7.2 Trade receivables

(In € thousand)	31/12/2023	31/12/2022	Change
Expenses to be reinvoiced to tenants	151,779	169,102	-17,323
Rent-free periods	5,778	10,207	-4,429
Trade receivables not yet billed	67,455	90,678	-23,223
Trade receivables and similar	133,013	111,980	21,033
TOTAL TRADE RECEIVABLES	358,025	381,967	-23,942
Impairment of receivables	-35,069	-37,253	2,184
NET TOTAL TRADE RECEIVABLES	322,956	344,714	-21,758

The change in total gross receivables (-€24 million) is mainly related to real estate development receivables in German Residential (-€49 million), in Italy Offices (+€42 million) and in France Offices (-€17 million), and the change in rent-free periods (-€4 million). Impairment of trade receivables decreased by €2 million.

Breakdown of trade receivables due

				Past due receivables
(In € thousand)	TOTAL	Receivables not yet due	Past due receivables	1 to 90 days	Between 90 days and 180 days	From 181 days to 1 year
Trade receivables and related accounts	133,013	70,562	62,451	21,798	6,010	4,363

	Past due receivables
(In € thousand)	> 1 year
Trade receivables and related accounts	30,280

The line "Change in working capital requirements on continuing operations" in the Statement of cash flows consists of:

(In € thousand)	31/12/2023	31/12/2022
Impact of changes in inventories and work in progress	38,654	-3,346
Impact of changes in trade & other receivables	60,861	49,184
Impact of changes in trade & other payables	93,945	-128,780
CHANGE IN WORKING CAPITAL REQUIREMENTS ON CONTINUING OPERATIONS (INCLUDING EMPLOYEE BENEFITS LIABILITIES)	193,460	-82,942

4.2.5.8 Other receivables

(In € thousand)	31/12/2023	31/12/2022	Change
Government receivables	48,668	76,052	-27,384
Other receivables	32,991	49,276	-16,285
Security deposits received (short-term)	5,313	29,198	-23,885
Current accounts	1,423	5,611	-4,188
TOTAL	88,395	160,137	-71,742

€48.7 million in government receivables comprise mainly VAT receivables.

4.2.5.9 Cash and cash equivalents

4.2.5.9.1 Accounting principles related to cash and cash equivalents

Cash and cash equivalents include cash, short-term deposits and money-market funds. These are short-term, highly liquid assets that are easily convertible into a known cash amount, and for which the risk of a change in value is negligible.

4.2.5.9.2 Table of cash and cash equivalents

(In € thousand)	31/12/2023	31/12/2022
Cash and cash equivalents	571,815	19,430
Cash at bank	328,804	442,111
TOTAL	900,619	461,541

At 31 December 2023, the cash equivalents consist mainly of level 1 standard money-market collective investment vehicles (SICAV) and level 2 term deposits in accordance with IFRS 13.

―	Level 1 of the portfolio corresponds to instruments whose price is listed on an active market for an identical instrument.
―	Level 2 corresponds to instruments whose fair value is determined using data other than the prices mentioned for level 1 and observable directly or indirectly (i.e. price-related data).

4.2.5.10 Shareholders' equity

4.2.5.10.1 Accounting principles related to shareholders' equity

If the Group buys back its own equity instruments (treasury shares), these are deducted from shareholders' equity. No profit or loss is recognised in the income statement when Group equity capital instruments are purchased, sold, issued or cancelled.

4.2.5.10.2 Change in shareholders' equity

The statement of changes in shareholders' equity and movements in the share capital are presented in note 4.1.4.

Covivio's share capital was composed of 101,006,389 shares issued and fully paid up with a par value of €3 each, i.e. €303 million at 31 December 2023. Covivio holds 844,509 treasury shares.

Changes in the number of shares during the period

Transaction	Shares issued	Treasury shares	Shares outstanding
NUMBER OF SHARES AT 31 DECEMBER 2022	94,786,096	961,069	93,825,027
Capital increase - dividend in shares	6,220,293
Treasury shares - liquidity agreement		25,059
Treasury shares - employee award		-101,145
Treasury shares - pending allocation		-40,474
NUMBER OF SHARES AT 31 DECEMBER 2023	101,006,389	844,509	100,161,880

The €351.9 million dividend was paid €279.1 million as a scrip dividend and €72.8 million in cash, taken from 2022 net income, premiums and retained earnings.

Reserves correspond to the parent company retained earnings and reserves, together with reserves from consolidation.

The line "Other" mainly includes movements in treasury shares for the period (-€1.1 million).

The change in non-controlling interests (-€642 million) is mainly due to total comprehensive income for the period (-€485 million) and the capital increases by Covivio Alexanderplatz (+€25 million) and the N2 Zoku hotel (+€2 million), movements partly offset by distributions for the period (-€184 million).

The line "Amounts received from shareholders during capital increases paid by non-controlling interests" of the cash flow statement (€27 million) corresponds mainly to the amounts received during the capital increases of Covivio Alexanderplatz (+€25 million) and the N2 Zoku hotel (+€2 million).

4.2.5.11 Statement of debt

4.2.5.11.1 Accounting principles applicable to debt

Financial liabilities include borrowings and other interest-bearing debt.

At initial recognition, financial liabilities are measured at fair value, minus the transaction costs directly attributable to the issue of the liability. They are then recognised at amortised cost based on the effective interest rate. The effective rate includes the nominal rate and actuarial amortisation of issue expenses and issue and redemption premiums.

Financial liabilities of less than one year are posted under "Current financial liabilities".

The Group companies hold real estate and equipment assets through leases (construction leases and long-term leases, premises, company vehicles, car parks). At the lease commencement date, the tenant measures the rental liability as the present value of rents owing not yet paid, using the implied interest rate for the lease, if this rate can be easily determined, or otherwise using the incremental borrowing rate. This debt is amortised as the contracts expire and gives rise to the recognition of a financial expense.

Rental liabilities are shown on the long-term or short-term rental liabilities line in the balance sheet and financial expenses in the "Interest costs for rental liabilities" line item.

Derivatives and hedging instruments

The Covivio group uses derivatives to hedge its floating-rate debt against interest-rate risk (hedging of future cash flows).

Derivative financial instruments are recorded on the balance sheet at fair value. The fair value is calculated using valuation techniques that use mathematical calculations based on recognised financial theories and parameters that incorporate the prices of market-traded instruments. This valuation is carried out by an external service provider.

Certain financial instruments in Italy Offices are eligible for hedge accounting within the meaning of IFRS 9.

In this case, changes in the fair value of the effective portion of the hedge are recognised net of tax in shareholders' equity until the hedged transaction occurs. The ineffective portion is recorded in the income statement.

All derivative instruments in the other segments are therefore recognised at their fair value, and changes are reflected in the income statement.

4.2.5.11.2 Table of debts and net financial debt

New financing taken out during the fiscal year is presented in 4.2.2.2 - Liquidity risk and in 4.2.5.11.3 - Bank borrowings.

Debt by type as at 31 December 2023 (in € million)

(In € thousand)	31/12/2022	Increase	Decrease	Change of scope	Change in exchange rate	Other changes
Bank borrowing	5,961,309	549,971	-772,448	0	0	3
Finance lease borrowing	228	0	-133	0	0	-95
Other borrowings	280,657	5,805	-3,509	-0	-0	-2
Treasury bills	743,000	213,000	-696,000	0	0	0
Securitised loans	2,104	0	0	0	0	0
Non-convertible bonds	3,944,001	698,000	-200,000	0	0	0
Subtotal Interest-bearing loans	10,931,299	1,466,776	-1,672,090	0	0	-94
Accrued interest	55,679	83,899	-67,975	-0	0	0
Deferral of loan expenses	-54,226	16,379	-53,553	0	47	0
Creditor banks	34,916	0	0	0	0	-33,890
Total LT and ST loans	10,967,667	1,567,054	-1,793,618	0	47	-33,984
of which Long-term	9,734,862
of which Short-term	1,232,805
Valuation of financial instruments	-512,876	0	0	-1	0	175,899
Total derivatives	-512,876	0	0	-1	0	175,899
of which Assets	-813,276
of which Liabilities	300,400
TOTAL BORROWINGS AND DERIVATIVES	10,454,792	1,567,054	-1,793,618	-1	47	141,915

(In € thousand)	31/12/2023
Bank borrowing	5,738,835
Finance lease borrowing	0
Other borrowings	282,951
Treasury bills	260,000
Securitised loans	2,104
Non-convertible bonds	4,442,001
Subtotal Interest-bearing loans	10,725,891
Accrued interest	71,603
Deferral of loan expenses	-91,353
Creditor banks	1,026
Total LT and ST loans	10,707,167
of which Long-term	9,324,322
of which Short-term	1,382,845
Valuation of financial instruments	-336,977
Total derivatives	-336,977
of which Assets	-522,082
of which Liabilities	185,105
TOTAL BORROWINGS AND DERIVATIVES	10,370,190

Net financial debt at 31 December 2023 (in € million)

(In € thousand)		31/12/2023	31/12/2022
Gross cash (a)		900,619	461,541
Bank overdrafts and current bank borrowings (b)		-1,026	-34,916
Net cash and cash equivalents (c) = (a)-(b)		899,593	426,625
Of which available net cash and cash equivalents		899,546	425,364
Of which unavailable net cash and cash equivalents		47	1,261
Total short-term interest-bearing loans	4.2.5.11.2	10,725,891	10,931,299
Accrued interest	4.2.5.11.2	71,603	55,679
Gross debt (d)		10,797,494	10,986,978
Amortisation of financing costs (e)		-91,353	-54,226
NET DEBT (D) - (C) + (E)		9,806,548	10,506,126

The line "Proceeds related to new borrowings" of the statement of cash flows (+€1,416 million) mainly corresponds to:

―	increases in interest-bearing loans (+€1,467 million) restated for the impact of net investments abroad and rental liabilities;
―	less amortisation of new loan issue costs (-€53 million).

The "Loan repayments" line of the statement of cash flows (€1,692 million) mainly corresponds to the decrease in interest-bearing loans (-€1,672 million) restated for the impact of net investments abroad and rental liabilities (-€20 million).

4.2.5.11.3 Bank borrowings

The table below outlines the characteristics of the borrowings taken out by Covivio group and the amount of the associated guarantees (principal amount over €100 million):

(In € thousand)	Outstanding debt (> or < €100 M) Debt		Appraisal value at 31/12/23 ⁽¹⁾	Outstanding debt at 31/12/23	Date of signature	Initial nominal amount
France Offices		€280 M - CB 21 Tower		247,900	29/07/2015	280,000
		€300 M - Orange		212,189	18/02/2016	300,000
		€165 M - DS Campus		160,463	25/02/2021	165,000
		€130 M - DS Extension		117,571	08/07/2021	130,000
		€115 M - Silex 2		115,000	12/07/2022	115,000
	> €100 M		1,844,615	853,123
	< €100 M		63,590	33,001
		Total France Offices	1,908,205	886,124
Italy Offices		€804 M - Central		300,332	15/09/2016	754,000
	> €100 M	Total Italy Offices	963,280	300,332
Hotels in Europe
		REFI €150 M (2023) - OPCI B2 HI (B&B)		150,000	20/10/2023	150,000
		£400 M - Rocky		460,772	24/07/2018	475,145
		€178 M - ParkInn Alexanderplatz Berlin		173,995	30/12/2019	178,000
	> €100 M		1,531,280	784,767
	< €100 M		1,712,215	456,436
		Total Hotels Europe	3,243,495	1,241,203
German Residential		Cornerstone		142,440	01/10/2014	136,737
		Refinancing Wohnbau/ Dümpten/ Aurélia/Duomo		163,382	20/01/2015	220,000
		Quadriga		138,334	16/06/2015	197,983
		Lego		135,331	24/06/2016	195,003
		Refinancing KG2		100,074	26/01/2017	140,000
		Refinancing Indigo, Prime		246,188	09/07/2019	260,000
		Refinancing KG1		135,064	20/09/2019	125,000
		Refinancing KG4		233,519	30/03/2020	248,130
		Refinancing KG Residential		122,200	20/11/2020	130,000
		Refinancing Arielle/ Dresden/Maria		144,350	21/05/2021	149,004
		Amadeus refinancing		143,680	27/07/2022	145,500
	> €100 M		4,335,809	1,704,562
	< €100 M		2,631,354	1,086,696
		Total German Residential	6,967,163	2,791,258
Germany Offices	> €100 M	Godewind-Frankfurt Airport Centre	198,600	130,000	17/12/2019	130,000
	< €100 M		859,110	352,819
		Total German Offices	1,057,710	482,819
Total collateral			14,139,853	5,701,736

(In € thousand)	Maturity
France Offices	29/07/2025
	30/06/2028
	23/02/2029
	08/07/2029
	12/07/2030
Italy Offices	14/09/2024
Hotels in Europe
	20/10/2030
	24/07/2026
	30/12/2029
German Residential	30/06/2025
	30/01/2025
	31/03/2026
	30/09/2024
	29/01/2027
	30/09/2029
	30/09/2029
	29/03/2030
	15/10/2030
	15/05/2031
	15/07/2032
Germany Offices	30/12/2025
Total collateral

(In € thousand)	Outstanding debt (> or < €100 M) Debt		Appraisal value at 31/12/23 ⁽¹⁾	Outstanding debt at 31/12/23	Date of signature	Initial nominal amount
France Offices
		€500 M - Green Bond		500,000	20/05/2016	500,000
		€500 M - Green Bond		595,000	21/06/2017	500,000
		€500 M - Green Bond		599,000	17/09/2019	500,000
		€500 M - Green Bond		599,000	23/06/2020	500,000
		€100 M - Green PP		100,000	15/01/2021	100,000
		€500 M - Green Bond		500,000	05/12/2023	500,000
	> €100 M			2,893,000
	< €100 M	Treasury bills		47,000
		Total France Offices	2,867,838	2,940,000
Italy Offices		€300 M - Green Bond King		300,000	17/10/2017	300,000
		€300 M - Green Bond Queen		300,000	20/02/2018	300,000
	> €100 M			600,000
	< €100 M		1,892,186	2,104
		Total Italy Offices	1,892,186	602,104
Hotels in Europe		€350 M - Green Bond		350,000	24/09/2018	350,000
		€599 M - Green Bond		599,000	27/07/2021	599,000
		NEU CP		213,000
	> €100 M			1,162,000
	< €100 M		2,695,823	37,143
		Total Hotels Europe	2,695,823	1,199,143
German Residential	< €100 M	Total German Residential	244,480	0
Germany Offices	< €100 M	Total German Offices	415,070	0
Other	< €100 M	France Residential	212	0
		Car parks	3,300	0
		Total Other	3,512	0
Total unencumbered			8,118,909	4,741,247
		Other liabilities		282,908
TOTAL			22,258,762	10,725,891

(In € thousand)	Maturity
France Offices
	20/05/2026
	21/06/2027
	17/09/2031
	23/06/2030
	20/01/2033
	05/06/32
Italy Offices	17/10/2024
	20/02/2028
Hotels in Europe	24/09/2025
	27/07/2029
German Residential
Germany Offices
Other
Total unencumbered
TOTAL

⁽¹⁾ The portfolio includes the fair value of assets operated directly by the company (head office, Flex Office) and five assets in France Offices which were reclassified as real estate development inventories at 31 December 2023.

It does not include assets consolidated under the equity method or real estate inventories (trading, development).

The borrowings are valued after their initial recognition at cost, amortised based on the effective interest rate.

Breakdown of borrowings at their nominal value according to the time left to maturity and by interest-rate type:

(In € thousand)	Outstanding at 31/12/2023	Delivery date Less than 1 year	Position at 31 December 2024	Maturity from 2 to 5 years	Position at 31 December 2028 (up to 5 years)
Fixed-rate financial liabilities	6,500,500	592,684	5,907,815	3,047,369	2,860,447
France Offices - Bank borrowings	133,004	1,004	132,000	39,381	92,619
France Offices - Other	279,230	0	279,230	273,405	5,825
Germany Offices - Bank borrowings	457,500	162,000	295,500	295,500	0
Hotels in Europe - Bank borrowings	79,889	0	79,889	79,889	0
Hotels in Europe - Other	3,674	0	3,674	3,674	0
German Residential - Bank borrowings	1,103,062	127,574	975,488	610,516	364,972
German Residential - Other	36	2	34	3	31
Total borrowings and convertible bonds	2,056,395	290,580	1,765,814	1,302,368	463,447
France Offices - Bonds	2,893,001	0	2,893,001	1,095,001	1,798,000
Italy Offices - Bonds	600,000	300,000	300,000	300,000	0
Italy Offices - Securitisation	2,104	2,104	0	0	0
Hotels in Europe - Bonds	949,000	0	949,000	350,000	599,000
Total debts represented by securities	4,444,105	302,104	4,142,001	1,745,001	2,397,000
Floating-rate financial liabilities	4,225,392	735,165	3,490,227	1,770,111	1,720,116
France Offices - Bank borrowings	753,119	3,446	749,673	457,508	292,165
Italy Offices - Bank borrowings	300,332	300,332	0	0	0
Hotels in Europe - Bank borrowings	1,198,457	23,977	1,174,480	746,799	427,681
German Residential - Bank borrowings	1,713,484	147,410	1,566,074	565,804	1,000,270
Total borrowings and convertible bonds	3,965,392	475,165	3,490,227	1,770,111	1,720,116
France Offices - Commercial paper	47,000	47,000	0	0	0
Hotels in Europe - Commercial paper	213,000	213,000	0	0	0
Total debts represented by securities	260,000	260,000	0	0	0
TOTAL	10,725,891	1,327,850	9,398,042	4,817,479	4,580,563

Debt by operating segment as at 31 December 2023 (in €M)

4.2.5.11.4 Derivatives

Derivative instruments consist mainly of rate hedging instruments put in place as part of the Group's interest rate hedging policy.

Fair value of net derivative instruments

(In € thousand)	31/12/2022 Net	Change in scope and reclassification of liabilities held for sale	Premiums - Restructuring balances	P&L impact	Impact on shareholders' equity	31/12/2023 Net
France Offices	147,413		44,515	-69,060	-	122,868
Italy Offices	15,850		-	-	-8,516	7,334
Germany Offices	11,885		1,070	-3,551	-	9,404
Hotels in Europe	177,367		-10	-66,962	-5,287	105,108
German Residential	160,360		-	-68,096	-	92,264
TOTAL	512,876		45,575	-207,670	-13,803	336,977
				Of which	Cash instruments - Liabilities	-185,105
					Cash instruments - Assets	522,082

The total impact of the value adjustments of derivatives on the income statement was -€207.7 million.

In accordance with IFRS 13, the fair values include the counterparty default risk (-€10.8 million).

For Italy Offices the change in fair value of -€8.5 million is recorded in equity.

The impact on equity of -€5.3 million on the Hotels in Europe line corresponds to the change during the period in the exchange rate of Cross Currency Swaps used to hedge the net investments in the United Kingdom (Net Investment Hedge).

The "Unrealised gains and losses relating to changes in fair value" line item in the Statement of Cash Flows (+€2,645 million), which makes it possible to calculate cash flows from operating activities, mainly incorporates the impact on net income of changes in the value of cash instruments (+€207.7 million), and changes in the value of the portfolio (+€2,437 million).

Breakdown of hedging instruments by maturity of notional values

(In € thousand)	At 31 December 2023	At less than one year	From 1 to 5 years	At more than 5 years
Fixed hedge
Fixed rate payer swap	5,421,621	-90,140	1,404,475	4,107,286
Fixed rate receiver swap	2,468,344	-375,000	1,833,344	1,010,000
Total swap	2,953,277	284,860	-428,869	3,097,286
Optional hedge
Fixed borrower swaption sale	500,000	0	0	500,000
Cap purchase	185,354	-64,804	200,858	49,300
Floor purchase	128,000	100,000	28,000	0
Floor sale	82,300	0	33,000	49,300

Hedge balance as at 31 December 2023

(In € thousand)	Fixed rate	Floating rate
Borrowings and financial debt (including creditor banks)	6,500,500	4,226,418
NET FINANCIAL LIABILITIES BEFORE HEDGING	6,500,500	4,226,418
Fixed hedge - Swaps	-	-2,953,277
Optional hedge - Caps	-	-185,354
Total hedges	-	-3,138,631
NET FINANCIAL LIABILITIES AFTER HEDGING	6,500,500	1,087,787

4.2.5.11.5 Rental liabilities

The balance of rental liabilities as at 31 December 2023 stood at €320 million, compared to €307 million at 31 December 2022, an increase of €13 million. This change is mainly due to the indexation of leases (+€12.5 million), the foreign exchange impact (+€3 million), the extension of lease terms (+2.4 million), new rights of use (+€1.4 million) and the reclassification as liabilities held for sale (-€5.6 million) of the rental liabilities of a company in Spain.

At 31 December 2023, the interest expense relating to these rental liabilities was €15.9 million.

Breakdown of rental liabilities by maturity

(In € thousand)	At 31 December 2023	At less than one year	From 1 to 5 years	From 5 to 25 years	At more than 25 years
Lease liabilities on the balance sheet	314,071	9,025	22,846	56,678	225,521
Rental liabilities in liabilities held for sale	5,606	113	406	3,977	1,109
RENTAL LIABILITIES	319,678	9,139	23,252	60,656	226,631

4.2.5.11.6 Bank covenants

Excluding debts raised without recourse to the Group's real estate companies, the debts of Covivio and its subsidiaries generally include bank covenants (ICR and LTV) applying to the borrower's consolidated financial statements. If these covenants are breached, early debt repayment may be triggered. These covenants are established in Group Share for Covivio and for Covivio Hotels.

With respect to Covivio Immobilien (German Residential), for which almost all of the debt raised is "non-recourse" debt at subsidiaries, portfolio financings do not contain any covenants related to LTV and ICR.

The most restrictive consolidated LTV covenants amounted to 60% for Covivio and Covivio Hotels at 31 December 2023.

The most restrictive consolidated ICR covenants amounted to 200% for Covivio and Covivio Hotels at 31 December 2023.

Concerning Covivio, corporate credit facilities usually include an asset-secured debt covenant (100% scope), the cap on which is set at 25% and which measures the ratio of secured debt (or debt with guarantees of any kind) to asset value.

Covivio group's banking covenants were fully complied with at 31 December 2023, as they stood at 44% for Group Share LTV, 641% for Group Share ICR, and 4.1% for the asset-secured debt ratio.

No financing has an accelerated payment clause contingent on Covivio or Covivio Hotels' rating, which is currently BBB+, stable outlook (Standard & Poor's rating).

Consolidated LTV	Company	Scope	Covenant threshold	Ratio
€300 M (2016) - Orange	Covivio	France Offices	≤ 60%	in compliance
€279 M (2017) - Roca	Covivio Hotels	Hotels in Europe	< 60%	in compliance
£400 M (2018) - Rocky	Covivio Hotels	Hotels in Europe	≤ 60%	in compliance
€130 M (2019) - REF I	Covivio Hotels	Hotels in Europe	≤ 60%	in compliance

Consolidated ICR	Company	Scope	Covenant threshold	Ratio
€300 M (2016) - Orange	Covivio	France Offices	≥ 200%	in compliance
€279 M (2017) - Roca	Covivio Hotels	Hotels in Europe	> 200%	in compliance
£400 M (2018) - Rocky	Covivio Hotels	Hotels in Europe	≥ 200%	in compliance
€130 M (2019) - REF I	Covivio Hotels	Hotels in Europe	> 200%	in compliance

Also, most of the covenants on mortgage financing are specific to the scopes financed. The main purpose of these covenants, normally LTV Scope and sometimes ICR or DSCR Scope, is to frame the use of financing lines by correlating it with the value of the underlying assets provided as collateral or the level of debt service coverage of net rental income.

4.2.5.12 Provisions for risks and charges

4.2.5.12.1 Accounting principles related to provisions for risks and charges

Retirement commitments

The retirement commitments are recognised in accordance with revised IAS 19. Provisions are recorded on the balance sheet for the liabilities arising from defined benefits pension schemes for existing staff at the reporting date. They are calculated according to the projected credit units method based on valuations made at each reporting date. The past service cost corresponds to the benefits granted, either when the company adopts a new defined-benefits scheme, or when it changes the level of benefits of an existing scheme. When new benefits are granted upon adoption of a new scheme or change in an existing scheme, the past service cost is immediately recognised in the income statement.

Conversely, when the adoption of a new scheme or change in an existing scheme gives rise to the vesting of benefits after its implementation date, the past service costs are recognised as an expense on a straight-line basis over the average remaining period until the benefits become fully vested. Actuarial gains and losses result from the effects of changes in actuarial assumptions and experience adjustments (differences between actuarial assumptions and what has actually occurred). The change in these actuarial gains and losses is recognised in "Other items" of comprehensive income.

The expense recognised in operating income includes the cost of the services rendered during the year, amortisation of past service costs and the effects of any reduction or liquidation of the scheme; the cost of discounting is recognised in net financial income. The valuations are made taking into account the Collective Agreements applicable in each country and in keeping with the various local regulations. For each employee, the retirement age is the social security eligibility age.

4.2.5.12.2 Table of provisions

					Reversal of provision
(In € thousand)	31/12/2022	Charges	Transfer	Change in actuarial gains and losses	Used	Unused
Other provisions for litigation	4,572	785	0	0	-800	-795
Other provisions	13,195	2,118	220	0	-301	-7,959
Provisions sub-total - current liabilities	17,767	2,903	220	0	-1,101	-8,754
Provisions for retirement benefit	36,854	739	-1	-1,260	-1,836	-52
Provisions for long-service awards	1,221	2	0	0	-12	-213
Provisions sub-total - non-current liabilities	38,075	741	-1	-1,260	-1,848	-265
TOTAL PROVISIONS	55,842	3,644	219	-1,260	-2,949	-9,019

(In € thousand)	31/12/2023
Other provisions for litigation	3,762
Other provisions	7,273
Provisions sub-total - current liabilities	11,035
Provisions for retirement benefit	34,444
Provisions for long-service awards	998
Provisions sub-total - non-current liabilities	35,442
TOTAL PROVISIONS	46,477

The provisions for litigation break down as €2.9 million for France Offices, €0.6 million for Hotels in Europe and €0.2 million for Italy Offices.

In line with the expiry period for risks, the €7.7 million reversal of provision for tax risks at operating properties was reversed in full.

The provision for employee severance indemnities totalled €34.4 million as at 31 December 2023 (of which €31.2 million for German Residential). The pension reform of IAS 19 commitments is not material to the financial statements.

The main actuarial assumptions used to estimate the commitments in France were as follows:

―	rate of pay increase: managers 2%, non-managers 2%;
―	discount rate: 3.37% (TEC 10 n +50 bps).

The main actuarial assumptions used to estimate the commitments in Germany were as follows:

	German Residential		Germany Offices
Assumptions used in calculating provisions for retirement benefit obligations in Germany	31/12/2023	31/12/2022	31/12/2023	31/12/2022
Discount rate	4.30%	3.90%	3.85%	3.35%
Annual wage growth	2.50%	2.50%	2.00%	2.00%
Rate of social security charges	1%/2%	1%/2%
Impact of provisions for retirement benefits on the income statement (in € thousand)
Cost of services rendered during the year	-320	-576	0	0
Financial cost	-1,332	-529	-6	-5
Effects of plan reductions/settlements	0	0	0	0
TOTAL IMPACT ON THE INCOME STATEMENT	-1,652	-1,105	-6	-5

4.2.5.13 Other short-term liabilities

(In € thousand)	31/12/2023	31/12/2022	Change
Social debt	39,132	37,555	1,577
Tax payables	31,233	41,239	-10,006
Current accounts - liabilities	4,386	1,137	3,249
Dividends to be paid	126	26	100
Other liabilities	43,125	37,507	5,618
TOTAL	118,002	117,464	538

4.2.5.14 Recognition of financial assets and liabilities

			Amount appearing in the valued statement of financial position
Categories according to IFRS 9	Item concerned in the statement of financial position (in €k)	31 December 2023 Net	At amortised cost	At fair value through equity	At fair value through the income statement	Fair value
Financial assets	Non-current financial assets	18,051	2,530	11,229	4,292	18,051
Loans and receivables	Non-current financial assets	99,731	99,731	-	-	99,731
	Total non-current financial assets	117,782	102,261	-	-	117,782
Loans and receivables	Trade receivables ⁽¹⁾	317,178	317,178	-	-	317,178
Assets at fair value	Derivatives at fair value ⁽²⁾	522,082	-	7,334	514,748	522,082
Assets at fair value through profit or loss	Cash and cash equivalents	571,815	-	-	571,815	571,815
TOTAL FINANCIAL ASSETS		1,528,857	419,439	18,563	1,090,855	1,528,857
Liabilities at amortised cost	Financial payables	10,725,891	10,725,891	-	-	10,306,837 ⁽³⁾
Liabilities at fair value through profit or loss	Financial instruments	185,105	-	-	185,105	185,105
Liabilities at amortised cost	Guarantee Deposits (Long-term and Short-term)	35,638	35,638	-	-	35,638
Liabilities at amortised cost	Trade payables ⁽⁴⁾	227,771	227,771	-	--	227,771
TOTAL FINANCIAL LIABILITIES		11,174,405	10,989,300	0	185,105	10,755,350

⁽¹⁾ Excluding deductible for €5,778 thousand.

⁽²⁾ In note 4.2.5.11.4 "Derivative instruments", the impact on equity of hedging instruments for the Italy Offices includes -€869 thousand in deferred taxes. The difference between the net book value and fair value of fixed-rate debt (valued at the risk-free rate, excluding credit spreads) is €419,054 thousand. The impact of the credit spread would be +€3,255 thousand.

⁽³⁾ €188,5 million in trade payables and €39.3 million in fixed asset trade payables.

Breakdown of financial assets and liabilities at fair value

The table below presents the financial instruments at fair value broken down by level:

―	level 1: financial instruments listed in an active market;
―	level 2: financial instruments whose fair value is evaluated through comparisons with observable market transactions on similar instruments or based on an evaluation method whose variables include only observable market data;
―	level 3: financial instruments whose fair value is determined entirely or partly by using an evaluation method using an estimate that is not based on market transaction prices on similar instruments.

(In € thousand)	Level 1	Level 2	Level 3	Total
Non-current financial assets at fair value through shareholders' equity	-	-	11,229	11,229
Non-current financial assets at fair value through the income statement	-	-	4,292	4,292
Derivatives at fair value through shareholders' equity	-	7,334	-	7,334
Derivatives at fair value through the income statement	-	514,748	-	514,748
Cash equivalents through the income statement	-	571,815	-	571,815
TOTAL FINANCIAL ASSETS	0	1,093,897	15,521	1,109,418
Derivatives at fair value through the income statement	-	185,105	-	185,105
TOTAL FINANCIAL LIABILITIES	0	185,105	0	185,105

4.2.6 Notes related to the statement of net income

4.2.6.1 Accounting principles

Rental income

According to the presentation of the income statement, rental income is treated as revenues. Net income from hotels under management and Flex Office, car park receipts, net income from property development and services are now shown in specific lines of the statement of net income, after net rental income.

As a general rule, the invoicing is quarterly except for the German Residential activity where the invoicing is monthly. The rental income of investment properties is recognised on a straight-line basis over the term of the ongoing leases. Any benefits granted to tenants (rent-free periods, step rental leases) are amortised on a straight-line basis over the duration of the lease agreement, in compliance with IFRS 16, and offset against investment properties.

Share-based payments (IFRS 2)

The application of IFRS 2 has resulted in the recognition of an expense for benefits granted to employees as share-based payments. This expense is recorded in income for the year under overheads.

Free shares are valued by Covivio at the date of their award according to a binomial valuation model. This model takes into account the features of the plan (price and exercise period), market data upon award (risk-free rate, share price, volatility and expected dividends) and assumptions of beneficiary behaviour. The benefits thus granted are recognised as expenses over the vesting period, and offset by an increase in the consolidated reserves.

4.2.6.2 Operating income

4.2.6.2.1 Rental income

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)	Change (in %)
France Offices	197,929	202,100	-4,171	-2.1%
Italy Offices	132,978	140,810	-7,832	-5.6%
Germany Offices	46,733	43,829	2,904	6.6%
Total Office rental income	377,640	386,739	-9,099	-2.4%
Hotels in Europe	263,983	238,845	25,138	10.5%
German Residential	293,382	280,382	13,000	4.6%
Other (including French Residential)	0	15	-15	-100.0%
Total rental income	935,005	905,981	29,024	3.2%

The rental income consists of rental and similar income (e.g. occupancy fees and entry rights) invoiced for investment properties during the period. Rent exemptions, step rental schemes and entry rights are spread out over the fixed term of the lease.

The changes in rents by asset-type break down as follows:

―	the decrease in rents for France Offices (-€4.2 million, i.e. -2.1%), mainly due to asset disposals (-€17.1 million) and the effect of vacancies (-€20.9 million) to feed the development pipeline. This decrease is partially offset by the delivery of the development portfolio in 2022 and 2023 (+€20.5 million), the indexation of rents (+€7.6 million) and asset management actions (+€8 million);
―	a decrease in rents for Italy Offices (-7.8 million, i.e. -5.6%), mainly due to disposals (-€17.6 million) partially offset by the delivery of assets under development (+€1.4 million) and indexation of rents (+€7.5 million);
―	an increase in rents for Germany Offices (+€2.9 million, i.e. +6.6%), mainly due to rent indexation;
―	an increase in rents from Hotels in Europe (+€25.1 million, i.e. +10.5%), mainly due to the increase in AccorInvest variable rents (+€10 million), the effect of indexation of rents and other items (+€9.2 million) and rents in the United Kingdom and Spain (+€8 million) as well as the delivery of assets under development (+€3.3 million). This increase was partially offset by the effect of disposals (-€5.6 million);
―	an increase in rents in German Residential (+€13 million, i.e. +4.6%) mainly related to the indexation of rents (+€10.8 million) and acquisitions (+€1.1 million).

Rental income in 2023 by operating segment (in € million):

4.2.6.2.2 Real estate expenses

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)	Change (in %)
Rental income	935,005	905,981	29,024	3.2%
Rebillable expenses	-167,134	-154,812	-12,321	8.0%
Income from rebilling of expenses	167,134	154,812	12,321	8.0%
Unrecovered property operating costs	-37,350	-40,124	2,773	-6.9%
Expenses on properties	-30,786	-29,133	-1,652	5.7%
Net losses on unrecoverable receivables	-3,391	5,616	-9,007	N/A
NET RENTAL INCOME	863,478	842,340	21,138	+2.5%
Rate for property expenses	-7.6%	-7.0%

―	Unrecovered rental costs: these expenses correspond to charges on vacant premises. Unrecovered rental expenses are presented net of reinvoicing to the income statement.

In accordance with IFRS 15, income from reinvoicing of rental expenses is presented separately above when the company acts as principal.

―

Expenses on properties: these consist of rental expenses that are borne by the owner, expenses related to works and expenses related to property management.

―

Net losses on unrecoverable receivables: these consist of losses on unrecoverable receivables and net provisions on doubtful receivables. The -€9 million change reflects a reversal of write-downs on doubtful receivables of +€10.5 million in Hotels in Europe in 2022, following the payment of unpaid rents in 2020 and 2021 by the tenant. The change is also due to reversals of provisions in 2023 for France Offices for +€2.1 million.

4.2.6.2.3 EBITDA from hotel operating and Flex Office and Net Income from other activities

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)	Change (in %)
Revenues from hotel operating activity and Flex Office	319,209	252,548	66,661	26.4%
Operating expenses of hotel operating activity and Flex Office	-227,867	-177,619	-50,248	28.3%
EBITDA FROM HOTEL OPERATING ACTIVITY AND FLEX OFFICE	91,342	74,929	16,413	21.9%
Net income from development	7,137	22,569	-15,432	-68.4%
Income from other activities	5,377	4,457	920	20.6%
Expenses of other activities	-4,011	-6,716	2,705	-40.3%
INCOME FROM OTHER ACTIVITIES	8,503	20,310	-11,807	-58.1%
TOTAL INCOME FROM OTHER ACTIVITIES	99,845	95,239	4,600	4.8%

―

EBITDA from the hotel operating activity and Flex Office consists of the EBITDA of the hotels under operation (+€75.7 million at 31 December 2023 versus +€62.3 million at 31 December 2022) and the net income from Flex Office (+€15.6 million versus +€12.6 million at 31 December 2022).

The +€13.4 million increase in EBITDA at hotels under management reflects the continued growth of the business, and the addition of three hotels in the United Kingdom generating +€3.5 million.

Flex Office's results increased by +€3 million, of which +€1.4 million for Wellio France and +€1.6 million for Wellio Italy, notably due to the opening of new sites.

―

Net income from other activities includes income from property development in Germany (€4 million), France (€1.7 million) and Italy (€1.5 million) and the car parks business (€1.3 million). The decrease in real estate development activity compared to last year is mainly due to the slowdown in residential development in Europe.

4.2.6.2.4 Net operating costs

These consist of head office expenses and operating costs net of revenues from management and administration activities.

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)	Change (in %)
Management and administration income	19,087	16,071	3,016	18.8%
Business expenses	-7,443	-7,649	206	-2.7%
Overheads	-131,051	-129,654	-1,397	1.1%
TOTAL NET OPERATING COSTS	-119,406	-121,232	1,825	-1.5%

Overheads include personnel expenses, which are specifically analysed in note 4.2.7.1.1.

4.2.6.2.5 Depreciation of operating assets and net change in provisions and other

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)
Depreciation of operating assets	-73,592	-58,932	-14,660
Net change in provisions and other	24,980	12,567	12,413

Depreciation of operating assets amounted to -€73.6 million at 31 December 2023, compared with -€58.9 million at 31 December 2022. This increase of €14.7 million is mainly due to:

―	the effect of the acquisitions of the business of 5 hotels (2 Belgian assets and 3 British assets) in the second half of 2022 for -€5.6 million;
―	the additional depreciation of a British asset related to the decrease in the appraisal value (-€1.3 million);
―	the impairment of a real estate project in Bordeaux for -€3.4 million.

The change in the Net change in provisions and other items is mainly due to the +€7.7 million reversal of the provision for taxes on the portfolio of Hotel Operating properties in Germany and the reversal of a +€1.3 million provision for a government receivable in operating properties.

This item includes the rebilling of long-term leases conferring in rem rights to tenants (€13 million as at 31 December 2023 versus €12.9 million as at 31 December 2022) when the rental expense is restated. Indeed, in order not to distort the real-estate expense ratio and following the cancellation of the rental expense in accordance with IFRS 16, the income from rebilling tenants is presented as a net change in provisions and others.

The €69.6 million "Net depreciation, amortisation and provisions" line item of the cash flow statement mainly includes €73.6 million in depreciation and amortisation of operating assets, as well as the reversal of the provision for taxes on the Hotel Operating properties scope in Germany (-€7.7 million).

4.2.6.3 Income from asset disposals

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)	Change (in %)
Proceeds from asset disposals ⁽¹⁾	596,849	588,382	8,467	1.4%
Disposal values of assets sold ⁽²⁾	-634,711	-588,873	-45,838	7.8%
Income from asset disposals	-37,862	-491	-37,371

⁽¹⁾ Sale price net of disposal costs.

⁽²⁾ Corresponds to the appraisal values published at 31 December 2022.

Income from asset disposals by business segment is shown in note 4.2.8.9.

4.2.6.4 Change in the fair value of buildings

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)
France Offices	-854,078	-196,415	-657,663
Italy Offices	-94,391	-45,433	-48,958
Hotels in Europe	-197,534	92,160	-289,693
German Residential	-1,009,489	202,424	-1,211,913
Germany Offices	-281,850	-34,531	-247,319
TOTAL CHANGE IN THE VALUE OF PROPERTIES	-2,437,342	18,205	-2,455,546

The -€2,437 million fall in the fair value of properties reflects valuation decreases of -€1,009 million in the German Residential portfolio (mainly Berlin assets), -€197.5 million in the entire Hotels in Europe portfolio, and -€1,230.3 million in offices in Europe, of which -€854 million related to France Offices. This was due to the increase in capitalisation and discount rates after the rise in interest rates, which was only partly offset by the increase in prime rents and indexation.

4.2.6.5 Net income from disposals of securities

Net income from disposals of securities is mainly made up of an adjustment of the sale price of car parks (sold in 2022).

4.2.6.6 Net income from changes in scope

They mainly record the acquisition costs of consolidated equity investments, which, in accordance with IFRS 3 "Business Combinations", must be recognised as expenses for the fiscal year.

The line "Impact of changes in the scope of consolidation related to investing activities" (paragraph 39 of IAS 7) of +€0.7 million on the statement of cash flows corresponds to the adjustment following the final price received from the car park companies sold at the beginning of 2022, for -€0.3 million by the France Offices business and +€0.9 million by Italy Offices.

4.2.6.7 Cost of net financial debt

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)	Change (in %)
Interest income on cash transactions	12,891	16,719	-3,829	-22.9%
Interest expense on financing operations	-270,557	-129,908	-140,649	108.3%
Regular amortisations of loan issue costs	-15,011	-12,305	-2,706	22.0%
Net expenses on hedges	107,078	-14,208	121,286	-853.6%
COST OF NET DEBT	-165,599	-139,702	-25,897	18.5%
Average annual rate of debt	1.56%	1.40%

The deterioration in the cost of net financial debt of -€25.9 million is mainly due to:

―	the increase in interest expenses on bank loans (-€142.1 million) due to the increase in the average interest rate on debt, partially offset by financial interest on hedges (+€121.3 million), due to the increase in interest rates;
―	the -€3.8 million decrease in interest income on cash transactions;
―	a decrease in penalties and fixed-rate debt repurchase costs for +€1.5 million

4.2.6.8 Net financial income

(In € thousand)	31/12/2023	31/12/2022	Change (in €k)	Change (in %)
Cost of the net financial debt	-165,599	-139,702	-25,897	18.5%
Interest cost for rental liabilities	-15,941	-15,812	-129	0.8%
Valuation of financial instruments	-207,671	582,604	-790,275	-
Changes in the fair value of financial instruments	-207,671	582,604	-790,275	-
Financial expenses net of discounting	28	0	28	-
Foreign exchange gains and losses	324	-589	913	-
Discounting and foreign exchange gains or losses	352	-589	941	-
Exceptional amortisation of loan issue costs	-1,368	-1,158	-210	-
Other	-408	-295	-113	-
Exceptional amortisation of loan issue costs	-1,776	-1,453	-323	-
TOTAL FINANCIAL INCOME	-390,634	425,049	-815,683	N. P

The change in interest rates compared to last year impacted the fair value of financial instruments by -€207.7 million. As a result, net financial income was an expense of -€390.6 million at 31 December 2023, compared with income of +€425 million at 31 December 2022.

The line "Cost of net financial debt and interest expenses on rental liabilities" of the TFT of €166.4 million corresponds to the cost of net financial debt for -€165.6 million restated for the amortisation of loan issue expenses for +€15 million, interest expense on rental liabilities for -€15.9 million and foreign exchange gains and losses for -€0.3 million.

4.2.6.9 Current and deferred tax liabilities

4.2.6.9.1 Accounting principles related to current and deferred taxes

SIIC tax regime (French companies)

Opting for the SIIC tax regime involves the immediate liability for an exit tax at the reduced rate of 19% on unrealised capital gains relating to assets and securities of entities not subject to corporate income tax. The exit tax is payable over four years, in four instalments, starting with the year the option is taken up. In return, the company is exempted from income tax on the SIIC business and is subject to distribution obligations.

(1) Exemption of SIIC revenues

The revenues of the SIIC are exempt from taxes concerning:

―	income from the leasing of buildings;
―	capital gains realised on asset disposals, investments in companies having opted for the tax treatment or companies not subject to corporation tax in the same business, as well as the rights under a lease contract and real-estate rights under certain conditions;
―	dividends of SIIC subsidiaries.

(2) Distribution obligations

The distribution obligations associated with exemption profits are the following:

―	95% of the earnings derived from asset leasing;
―	70% of the capital gains from disposals of assets and shares in subsidiaries having opted for the tax treatment or subsidiaries not subject to corporation tax with a SIIC corporate purpose for two years;
―	100% of dividends from subsidiaries that have opted for the tax treatment.

The exit tax liability is discounted on the basis of the initial payment schedule determined from the first day the relevant entities adopted SIIC status.

The liability initially recognised is discounted and an interest charge is applied at each closing, allowing the liability to reflect the net discounted value as at the closing date. The discount rate used is based on the yield curve, given the deferred payment.

At 31 December 2023, there are no exit tax liabilities on the balance sheet.

Ordinary law regime and deferred taxes

Deferred taxes result from temporary differences in taxation or deduction and are calculated using the liability method, and on all temporary differences in the company financial statements, or resulting from consolidation adjustments. The valuation of the deferred tax assets and liabilities must reflect the tax consequences that would result from the method by which the company seeks to recover or settle the book value of its assets and liabilities at the end of the financial year. Deferred taxes are applicable to Covivio group entities that are not eligible for the SIIC tax regime.

A deferred tax asset is recognised in the case of deferrable tax losses in the likely event that the entity in question, not eligible for the SIIC regime, will have taxable future profits against which the tax losses may be offset.

In the case where a French company intends to opt directly or indirectly for SIIC tax treatment in the near future, an exception under the ordinary law regime is applied by anticipating the application of the reduced rate (exit tax) in the valuation of deferred taxes.

SIIQ tax regime (Italian companies)

Following Beni Stabili's merger with Covivio, the tax arrangements for Covivio's permanent establishment in Italy changed after it left the SIIQ tax regime. It is now subject to the 20% corporate income tax on real-estate companies.

In Italy, following the adoption of the law on the revaluation of properties, the Group opted in 2021 for the tax revaluation of certain Italian assets.

During the first half of 2022, the tax authorities clarified the calculation rules by limiting the amount of the tax revaluation to the market value when this is lower than the tax value. In this context, the Group had to recalculate the amount of the tax revaluation and the "substitutive tax" of 3%.

SOCIMI tax regime (Spanish companies)

The Spanish companies held by Covivio Hotels opted for the SOCIMI tax regime, effective on 1 January 2017. Opting for SOCIMI does not trigger an exit tax upon making the option. However, the capital gains on the period outside of the SOCIMI regime during which assets were held are taxable when disposing of said assets.

The rental income from the leasing of assets and proceeds from disposals of assets held under the SOCIMI regime are tax exempt, provided 80% of rental profits and 50% of asset disposal profits are distributed. These capital gains are determined by allocating the taxable gains to the period outside the SOCIMI regime in a linear basis, over the total holding period.

REIT regime (English companies)

Nine companies in the United Kingdom have opted for the REIT exemption regime from 1 January 2024. Opting for the REIT regime does not trigger an exit tax upon making the option.

The rental income from the leasing of assets held under the REIT regime are tax exempt, provided 90% of rental profits are distributed.

Capital gains on disposals are also exempt from tax.

4.2.6.9.2 Taxes and rates used by geographical area

(In € thousand)	Taxes payable	Deferred taxes	Total	Deferred tax rate
France	-1,314	493	-821	25.83% ⁽¹⁾
Italy	-4,365	7,630	3,265	20.00% ⁽²⁾
Germany	-33,179	196,696	163,517	15.83% ⁽³⁾
Belgium	-2,368	2,222	-146	25.00% ⁽⁴⁾
Luxembourg	-832	15,459	14,627	24.94%
United Kingdom	-1,603	29,308	27,705	25.00% ⁽⁵⁾
Netherlands	-1,511	772	-739	25.80% ⁽⁶⁾
Portugal	-604	286	-318	22.50% ⁽⁷⁾
Spain	0	-119	-119	25.00%
Ireland	-285	177	-108	33.00% ⁽⁸⁾
Poland	-55	39	-17	9.00% ⁽⁹⁾
Hungary	-104	863	759	9.00%
Czech Republic	-321	1	-320	21.00% ⁽¹⁰⁾
TOTAL	-46,541	253,826	207,285	-

(-) corresponds to a tax expense; (+) corresponds to tax income.

⁽¹⁾ In France, the tax rate for the 2023 fiscal year is 25.83%.

⁽²⁾ Since the merger with Covivio and its exit from the SIIQ regime, Covivio in Italy has been subject to a 20% tax rate.

⁽³⁾ In Germany, the tax rate on property goodwill is 15.83%; however, for companies in the hotel operations activity, tax rates vary between 30.18% and 32.28%.

⁽⁴⁾ In Belgium, the tax rate for the 2023 fiscal year is 25%.

⁽⁵⁾ In the United Kingdom, the tax rate applied from 1 April 2023 is 25%.

⁽⁶⁾ In the Netherlands, the rate for the 2023 financial year is 25.8%.

⁽⁷⁾ In Portugal, the tax rate used for the 2023 fiscal year is 21%, plus a regional tax rate of 1.5%.

⁽⁸⁾ In Ireland, the tax rate for the 2023 financial year is 12.5% for operating activities, 25% for holding companies and 33% for gains on disposals.

⁽⁹⁾ In Poland, the tax rate applied for the 2023 fiscal year is 9% for companies with revenue of less than €2 million per year, and 19% above that.

⁽¹⁰⁾ In the Czech Republic, the tax rate in 2023 is 19%. It will increase to 21% from 1 January 2024.

Taxes payable on disposals amounted to -€11.1 million in German Residential. Taxes payable in Italy Offices mainly relate to the national corporate income tax "IRES" (-€3.9 million).

Impact of deferred taxes on income

(In € thousand)	31/12/2023	31/12/2022	Change
France Offices	-375	-408	33
Italy Offices	6,119	-20,753	26,872
Germany Offices	40,119	1,037	39,082
Hotels in Europe	46,433	3,974	42,459
German Residential	161,584	-97,804	259,388
Other	-54	-37	-17
TOTAL	253,826	-113,991	367,817

―	In Italy Offices, the change mainly reflects the deferred tax expense for the first half of 2022, of which -€14.8 million relates to the clarification of the rules for calculating the 3% substitutive tax for the tax revaluation of certain real estate assets (note 4.2.6.9.1).
―	The deferred tax income of Hotels in Europe is mainly related to the decrease in asset values in Germany (€12.7 million) and in the United Kingdom, reversal of deferred taxes of €32.3 million following the integration of 9 British companies to the REIT regime with effect from 1 January 2024.
―	The deferred tax income in German Residential is mainly related to the decrease in asset values and the reversal of deferred taxes on a real estate development project following its delivery (impact of +€13.9 million).

4.2.6 .9.3 Tax proof

The management companies that opted for the SIIC/SOCIMI tax regime in previous years do not pay corporate income tax, except for those that also have a taxable business activity.

Net income before taxes and before income of equity affiliates is neutralised, including for their taxable activities and their transparent taxable subsidiaries.

Accordingly, the tax proof is required solely for taxable French and international companies.

Breakdown of tax by tax sector (in €k)	France (SIIC) Spain (SOCIMI)	France Common law	Abroad Common law	31/12/2023
Net income before tax, before income of equity affiliates	-866,099	-7,159	-1,202,528	-2,075,786
Income tax expense recorded	819	404	206,061	207,284

Proof of tax under common law is broken down into:

(In € thousand)		31/12/2023
Net Income before tax		-2,110,150
Share of income from equity affiliates		34,364
Net income before tax, before income of equity affiliates		-2,075,786
of which SIIC/SOCIMI companies		-866,099
of which companies subject to tax		-1,209,687
Theoretical tax rate of 25.83%	(a)	312,402
Impact of rate differentials		-140,478
Impact of tax credits and fixed tax rates		-10
Impact of permanent differences		20,677
Changed to prior year losses without DTA		693
Tax deficits without DTA		-12,490
Total tax impacts for the period	(b)	-131,608
Impact of tax audits and taxes on prior years	(c)	25,672
Income tax expense recorded	(a)+(b)+(c)	206,465
OVERALL EFFECTIVE RATE		17.07%

The impact of tax audits and taxes on previous years of €25.7 million includes a tax reversal of +€32.3 million on capital gains on British hotels related to the entry from 1 January 2024 into the UK REIT exempt scheme.

The €9.6 million from the tax loss income of Murdelux contributed to the tax losses for the fiscal year without DTA of €12.5 million

4.2.7 Other information

4.2.7.1 Personnel remuneration and benefits

4.2.7.1 .1 . Staff costs

At 31 December 2023, personnel expenses amounted to €173 million (compared with €164.3 million at 31 December 2023), breaking down as follows:

(In € thousand)	31/12/2023	31/12/2022
EBITDA from hotel operating activity and Flex Office	-65,916	-54,965
Overheads	-82,992	-81,193
Income from asset disposals	-3,745	-2,981
TOTAL PERSONNEL EXPENSES IN THE STATEMENT OF NET INCOME	-152,653	-139,139
Development and promotion projects	-20,343	-25,208
TOTAL CAPITALISED PERSONNEL EXPENSES	-20,343	-25,208
TOTAL PERSONNEL EXPENSES	-172,996	-164,347

The EBITDA from the hotel operating activity and Flex Office includes personnel expenses, which increased by €11 million following the continued recovery of activity.

In the "Overheads" item, staff costs are €83 million at 31 December 2023. They include €7.6 million for share-based payments and a related social charge expense of €1.0 million.

Headcount

At 31 December 2023, the headcount of fully consolidated companies, excluding companies in the operating properties business line, was 997 compared with 1,016 at 31 December 2022.

Headcount by country in number of employees

The average headcount during 2023 was 993 employees.

Following the takeover of two hotels in Belgium in the second half of 2022, the average headcount of operating properties was 1,346 at 31 December 2023 compared to 1,321 people at 31 December 2022.

4.2.7.1 .2 Description of share-based payments

Covivio awarded free shares in 2023. The following assumptions were made for the free shares:

Plan of 21 February 2023	Corporate officers - with performance condition plan 1	Corporate officers - with performance condition plan 2	Corporate officers - with performance condition plan 3	Corporate officers and/or employees - without performance condition plan 4
Date awarded	21 Feb. 23	21 Feb. 23	21 Feb. 23	21 Feb. 23
Number of shares awarded	16,393	10,929	27,321	7,729
Share price on the date awarded	€62.00	€62.00	€62.00	€62.00
Exercise period for rights	3 years	3 years	3 years	3 years
Cost of forfeiture of dividends	-€10.84	-€10.84	-€10.84	-€10.84
Actuarial value of the share net of dividends not collected during the vesting period	€51.16	€51.16	€51.16	€51.16
Revenue-related discount:
In number of shares	2,646	1,764	4,411	1,248
As percentage of share price on the date awarded	16%	16%	16%	16%
Value of the benefit per share	€16.65	€14.44	€32.92	€41.15

Plan of 23 November 2023	Corporate officers and/or employees - without performance condition plan
Date awarded	23 Nov. 23
Number of shares awarded	103,715
Share price on the date awarded	€43.82
Exercise period for rights	3 years
Cost of forfeiture of dividends	-€10.12
Actuarial value of the share net of dividends not collected during the vesting period	€33.70
Revenue-related discount:
In number of shares	23,532
As percentage of share price on the date awarded	23%
Value of the benefit per share	€23.76

During the 2023 financial year, the total number of free shares granted was 166,087 (falling to 165,967 shares at 31 December 2023 following the departure of some employees). As stated elsewhere, the corresponding expense is recognised in income over the entire vesting period.

Following the final allocation of the February and November 2020 plan, the expense calculated for previous years was revised downwards following the departure of employees for -€0.2 million (income).

The expense on free shares recognised at 31 December 2023 was €7.6 million (compared to €6.8 million at 31 December 2022). The associated URSSAF contribution was estimated at -€1 million (expense). In addition, the URSSAF expenses paid in 2023 for the shares vested from the 2020 plan were reclassified as free share expenses in the amount of €0.7 million. These expenses are presented in the income statement on the "Overheads" line.

The cost of the free shares includes the impact of the 2020 plan for €2.1 million, the 2021 plan for €3.1 million, the 2022 plan for €1.8 million and the 2023 plan for €0.6 million.

4.2.7.2 Earnings per share and diluted earnings per share

Earnings per share (IAS 33)

Basic earnings per share are calculated by dividing the income attributable to holders of ordinary Covivio shares (the numerator) by the average weighted number of ordinary shares outstanding (the denominator) over the period.

To calculate the diluted earnings per share, the average number of shares outstanding is adjusted to take into account the conversion of all potentially dilutive ordinary shares, in particular free shares being vested.

The impact of the dilution is only taken into account if it is dilutive.

The dilutive effect is calculated using the treasury stock method. The number calculated using this method is added to the average number of shares outstanding and becomes the denominator. To calculate the diluted earnings, the income attributable to the holders of ordinary Covivio shares is adjusted by:

―	all dividends or other items under potentially dilutive ordinary shares that were deducted to arrive at the income attributable to the holders of ordinary shares;
―	interest recognised during the fiscal year to the potentially dilutive ordinary shares;
―	any change in the income and expenses resulting from the conversion of the dilutive potential ordinary shares.

	Net income	Net income from continuing operations
GROUP SHARE (in €k)	-1,418,785	-1,418,785
Average number of undiluted shares	97,487,850	97,487,850
Total dilution impact	596,894	596,894
Number of free shares ⁽¹⁾	596,894	596,894
Average number of diluted shares	98,084,744	98,084,744
UNDILUTED EARNINGS PER SHARE (in €)	-14.55	-14.55
Impact of dilution - free shares (in €)	0.09	0.09
DILUTED EARNINGS PER SHARE (in €)	-14.46	-14.46

⁽¹⁾ The number of shares being vested is broken down according to the following plans:

2020 plan	36,500
2021 plan	255,319
2022 plan	139,108
2023 plan	165,967
Total	596,894

4.2.7.3 Off-balance sheet commitments

4.2.7.3.1 Commitments given

Fully consolidated companies

Off-balance sheet commitments given (in € million)	31/12/2023	31/12/2022
Commitments related to consolidated companies	11.8	135.8
Commitments related to investments	0	39.9
Commitments given for specific transactions	0	90.6
Commitments given for disposal of equity investments - Liability guarantees	11.8	5.3
Commitments related to financing	5,701.7	5,920.9
Financial guarantees given (outstanding pledged debt)	5,701.7	5,920.9
Commitments related to operating activities	1,712.6	1,932.7
Commitments given related to business development	1,386.9	1,668.2
Work commitments outstanding	1,021.3	1,430.1
Purchase commitments	108.2	5.0.
Bank guaranties and other guaranties given	257.4	233.1
Commitments related to asset disposals	325.6	264.5
Other commitments on disposals	0.0	5.1
Preliminary sale agreements given	325.6	259.4

Other commitments given related to consolidated companies

Other commitments:

―	under its SIIC status, the Group has specific obligations, as set out in Section 4.2.6.9.1;
―	under the free share plans awarded (see Section 4.2.7.2), Covivio has undertaken to deliver (through acquisition or creation) 596,894 shares to the beneficiaries present at the end of the vesting period;
―	the Central Facilities of the Sunparks asset were contributed to Foncière Vielsalm Loisirs, of which Covivio Hotels holds 35.7% of the share capital but only 2.7% of the voting rights with the possibility for Covivio Hotels to exercise a put at the end of the 10 ^th year.

4.2.7.3.2 Commitments received

Fully consolidated companies

Off-balance sheet commitments received (in € million)	31/12/2023	31/12/2022
Commitments related to consolidated companies	0	0
Other	0	0
Commitments related to financing	2,063.4	1,892.9
Financial guarantees received (authorised lines of credit not used)	2,063.4	1,892.9
Commitments related to operating activities	6,087.0	7,254.6
Other contractual commitments received related to the "Rent to be collected" activity ⁽¹⁾	4,355.1	5,269.1
Assets received in pledge, mortgage or collateral, as well as guarantees received	385.0	298.8
Preliminary sale agreements received	325.6	259.4
Works remaining to be done (fixed assets) = (1)+(2) commitments given	1,021.3	1,427.4

⁽¹⁾ Other contractual commitments received related to the "Rent to be collected" activity:

(In € thousand)	Total
Under 1 year	594.5
1 to 5 years	1,831.7
Over 5 years	1,928.9
TOTAL	4,355.1

These are minimum payments to be received for non-cancellable operating leases.

4.2.7.4 Related-party transactions

The information mentioned below concerns the main related parties, namely equity affiliates.

Details of related-party transactions (in € thousand)

Partner	Type of partner	Operating income	Net financial income	Balance sheet	Comments
Cœur d'Orly	Equity affiliates	1,454	0	9,153	Monitoring of projects and investments, Loans, Asset and property fees
Euromed	Equity affiliates	257	0	24,096	Loans, Asset and property fees
Lénovilla	Equity affiliates	385	0	9,937	Loans, Asset and property fees

4.2.7.5 Remuneration of Covivio executives

(In € thousand)	31/12/2023	31/12/2022
Management
Short-term benefits (fixed/variable)	2,560	2,683
Post-retirement benefits	-	-
Long-term benefits	-	-
Benefits in kind	81	89
Compensation for termination of contract	-	-
TOTAL	2,641	2,772
Directors
REMUNERATION OF BOARD MEMBERS	581	707

The variable portion does not include the free shares awarded. Moreover, 62,372 free shares were awarded to the executives of all Group subsidiaries in the 2023 fiscal year (including 54,643 shares awarded subject to performance conditions) which will vest in 2026. All 62,372 shares remained validly awarded at 31 December 2023.

In case of involuntary departure, an indemnity will be awarded to the following executives:

―	Christophe Kullmann (Chief Executive Officer);
―	Olivier Estève (Deputy CEO).

This amount will be equal to 12 months of total remuneration (fixed salary and the annual variable portion), plus one month of additional remuneration per year of employment (capped at 24 months of remuneration). This indemnity will be subject to two performance conditions (the change in NAV and the achievement of the performance targets for the annual bonus).

4.2.7.6 Statutory Auditors' fees

	Mazars				Ernst & Young et Autres
	Amount		%		Amount
(In € thousand)	2023	2022	2023	2022	2023	2022
Statutory audit, certification, review of the individual and consolidated financial statements	1,619	1,645	48%	48%	1,618	1,648
Issuer	356	403	40%	36%	535	704
Fully consolidated affiliates	1,042	1,083	48%	53%	1,018	865
Equity affiliates	221	159	77%	58%	65	79
Non-audit services ⁽¹⁾	79	219	17%	25%	398	650
Issuer	32	211	19%	47%	138	238
Fully consolidated affiliates	45	8	15%	2%	252	404
Equity affiliates	2	0	N/A	N/A	8	8
TOTAL	1,698	1,864	44%	44%	2,016	2,298

	Ernst & Young et Autres		Other
	%		Amount		%
(In € thousand)	2023	2022	2023	2022	2023	2022
Statutory audit, certification, review of the individual and consolidated financial statements	48%	48%	110	112	3%	3%
Issuer	60%	64%	0	0	-	-
Fully consolidated affiliates	47%	43%	110	78	5%	4%
Equity affiliates	23%	29%	0	34	0%	13%
Non-audit services ⁽¹⁾	83%	75%	0	0	0%	0%
Issuer	81%	53%	0	0	-	-
Fully consolidated affiliates	85%	98%	0	0	-	-
Equity affiliates	N/A	N/A	0	0	-	-
TOTAL	53%	54%	110	112	3%	3%

⁽¹⁾ Non-audit services performed in 2023 relate to the CSR (€274 thousand), and other operations (€203 thousand).

4.2.7.7 Audit exemptions for Germany Offices subsidiaries

In accordance with section 264 par. 3, 264b HGB, Covivio granted its guarantee to certain subsidiaries of Covivio Office Holding GmbH and Covivio Holding GmbH, registered in Germany, so that they may benefit from an audit exemption for the financial year ended on 31 December 2023. A contractual audit is carried out.

Company name	Registration
Covivio Holding GmbH	N/A
Covivio Office Holding GmbH	DE330759796
Covivio Office Gmbh	DE315913571
Covivio Beteiligungsgesellschaft GmbH	DE319740870
Covivio Office I GmbH	DE320537742
Covivio Office II GmbH	DE323303935
Covivio Office III GmbH	DE323303919
Covivio Office IV GmbH	DE323303927
Covivio Office V GmbH	DE323303902
Covivio Office VI GmbH & Co. KG	DE332138839
Covivio Office VII GmbH	DE323303935

Company name	Registration
Covivio Office Berlin GmbH	DE327072645
Covivio Groß-Berliner-Damm GmbH	DE327818834
Covivio Tino-Schwierzina 32 Grundbesitz GmbH	DE322098720
Covivio Technical Services I GmbH	DE330106790
Covivio Technical Services II GmbH	DE325641950
Covivio Technical Services III GmbH	DE325641976
Covivio Technical Services IV GmbH	DE325641984
Covivio Verwaltungs IV GmbH	DE325641941
Covivio Alexanderplatz GmbH	DE322706978
Covivio Construction GmbH	DE343586953
Acopio Office Energy GmbH	DE350365820

4.2.8 Segment reporting

4.2.8.1 Accounting principles relating to operating segments - IFRS 8

The Covivio group holds a wide range of real-estate assets to collect rental income and benefit from appreciation in the assets held. Segment reporting is organised by asset type.

The operating segments are as follows:

―	France Offices: office real-estate assets located in France;
―	Italy Offices: office real-estate and retail assets located in Italy;
―	Germany Offices: office real-estate assets located in Germany held by the Covivio group via its subsidiary Covivio Office Holding;
―	Hotels in Europe: commercial buildings largely in the hotel segment and Hotel Operating properties held by Covivio Hotels;
―	German Residential: real estate housing assets in Germany held by the Covivio group through its subsidiary Covivio Immobilien SE.

These segments are reported on and analysed regularly by Group management in order to make decisions on what resources to allocate to the segment and to evaluate their performance.

Following the sale of three car park management companies and the transfer of all assets of FDL (France Residential) in 2022, the "Other" segment includes non-material activities.

4.2.8.2 Intangible fixed assets

2022 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Intangible fixed assets and goodwill	13,814	2,308	120,404	427	40	303
NET	13,814	2,308	120,404	427	40	303

2022 ‒ (In € thousand)	Total
Intangible fixed assets and goodwill	137,296
NET	137,296

2023 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Intangible fixed assets and goodwill	11,848	5,136	117,578	1,812	16	215
NET	11,848	5,136	117,578	1,812	16	215

2023 ‒ (In € thousand)	Total
Intangible fixed assets and goodwill	136,605
NET	136,605

4.2.8.3 Tangible fixed assets

2022 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Operating properties	202,770	123,266	1,096,619	41,091	4,395	3,392
Other fixed assets	8,078	3,023	17,530	11,413	224	64
Fixed assets in progress	31,077	30,522	6,871	0	0	0
NET	241,925	156,811	1,121,020	52,504	4,619	3,456

2022 ‒ (In € thousand)	Total
Operating properties	1,471,533
Other fixed assets	40,332
Fixed assets in progress	68,470
NET	1,580,335

2023 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Operating properties	230,213	116,059	1,069,262	46,119	3,640	2,805
Other fixed assets	8,541	2,594	16,138	12,374	285	46
Fixed assets in progress	47,461	27,751	10,151	0	0	0
NET	286,215	146,404	1,095,551	58,493	3,925	2,851

2023 ‒ (In € thousand)	Total
Operating properties	1,468,098
Other fixed assets	39,978
Fixed assets in progress	85,363
NET	1,593,439

In France Offices, the change in tangible fixed assets (+€44 million) corresponds mainly to the €32 million transfer of the N2 hotel in the operating properties business and work carried out on the future L'Atelier head office in Paris for €16 million.

4.2.8.4 Investment properties/Assets held for sale

2022 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Investment properties	4,736,349	2,539,462	4,937,208	8,209,194	968,901	0
Assets held for sale	175,856	28,742	42,946	11,554	0	302
Investment properties under development	787,530	210,597	0	22,511	553,017	0
TOTAL	5,699,735	2,778,801	4,980,154	8,243,259	1,521,918	0

2022 ‒ (In € thousand)	Total
Investment properties	21,391,114
Assets held for sale	259,400
Investment properties under development	1,573,655
TOTAL	23,224,169

2023 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Investment properties	3,843,604	2,381,640	4,655,245	7,321,634	844,310	0
Assets held for sale	114,950	41,986	161,915	7,586	0	212
Investment properties under development	331,876	299,447	0	39,029	469,686	0
TOTAL	4,290,430	2,723,073	4,817,160	7,368,249	1,313,996	212

2023 ‒ (In € thousand)	Total
Investment properties	19,046,433
Assets held for sale	326,649
Investment properties under development	1,140,038
TOTAL	20,513,120

The -€2,711 million change is mainly due to the negative change in fair value (-€2,437 million), disposals during the period (-€632 million), the transfer to real estate trading properties of 5 France Offices projects (-€122 million) offset by works and capitalisation of personnel expenses, brokers' fees and financial interest (+€453 million), by the reclassification (+€6 million) of other assets belonging to a Hotels in Europe company and the change in exchange rates (+€21 million), see 4.2.5.1.3.

4.2.8.5 Financial assets

2022 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Loans	30,281	0	66,531	8	0	5
Other financial assets	652	4,564	1,157	8,132	0	2,250
Receivables on financial assets	0	9	0	243	40	0
Sub-total non-current financial assets	30,933	4,573	67,688	8,383	40	2,255
Investments in equity affiliates	154,349	35,018	211,691	0	0	0
TOTAL FINANCIAL ASSETS	185,282	39,591	279,379	8,383	40	2,255

2022 ‒ (In € thousand)	Total
Loans	96,825
Other financial assets	16,755
Receivables on financial assets	292
Sub-total non-current financial assets	113,872
Investments in equity affiliates	401,058
TOTAL FINANCIAL ASSETS	514,930

2023 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Loans	42,675	0	56,722	8	0	20
Other financial assets	652	4,078	2,731	10,481	0	109
Receivables on financial assets	0	27	0	248	31	0
Sub-total non-current financial assets	43,327	4,105	59,453	10,737	31	129
Investments in equity affiliates	118,747	51,580	204,590	0	0	0
TOTAL FINANCIAL ASSETS	162,074	55,685	264,043	10,737	31	129

2023 ‒ (In € thousand)	Total
Loans	99,425
Other financial assets	18,051
Receivables on financial assets	306
Sub-total non-current financial assets	117,782
Investments in equity affiliates	374,918
TOTAL FINANCIAL ASSETS	492,699

4.2.8.6 Contribution to equity

2022 ‒ (In € thousand)	France and Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)	Total
Shareholders' equity Group Share before elimination of securities	7,187,560	1,566,797	4,103,391	656,788	9,001	13,523,538
Elimination of securities	0	-1,314,157	-2,046,831	-678,759	-40,781	-4,080,528
Shareholders' equity Group Share	7,187,560	252,640	2,056,560	-21,971	-31,780	9,443,010
Minority interests	662,858	2,187,332	1,681,545	116,763	0	4,648,499
SHAREHOLDERS' EQUITY	7,850,418	2,439,972	3,738,105	94,793	-31,780	14,091,509

2023 ‒ (In € thousand)	France and Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)	Total
Shareholders' equity Group Share before elimination of securities	6,520,406	1,483,618	3,549,326	476,145	8,024	12,037,520
Elimination of securities	0	-1,314,157	-2,046,831	-678,759	-40,756	-4,080,503
Shareholders' equity Group Share	6,520,406	169,461	1,502,495	-202,614	-32,732	7,957,017
Minority interests	478,143	2,059,548	1,362,043	106,417	0	4,006,151
SHAREHOLDERS' EQUITY	6,998,549	2,229,009	2,864,538	-96,197	-32,732	11,963,167

4.2.8.7 Financial liabilities

2022 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Total long-term interest-bearing loans	3,455,944	891,777	2,208,194	2,709,189	469,758	0
Total short-term interest-bearing loans	755,675	17,422	294,515	131,437	33,756	0
TOTAL LT AND ST LOANS	4,211,619	909,199	2,502,709	2,840,626	503,514	0

2022 ‒ (In € thousand)	Total
Total long-term interest-bearing loans	9,734,862
Total short-term interest-bearing loans	1,232,805
TOTAL LT AND ST LOANS	10,967,667

2023 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Total long-term interest-bearing loans	3,999,591	298,297	2,198,304	2,532,872	295,258	0
Total short-term interest-bearing loans	76,439	609,746	255,828	278,823	162,006	3
TOTAL LT AND ST LOANS	4,076,030	908,043	2,454,132	2,811,695	457,264	3

2023 ‒ (In € thousand)	Total
Total long-term interest-bearing loans	9,324,322
Total short-term interest-bearing loans	1,382,845
TOTAL LT AND ST LOANS	10,707,167

4.2.8.8 Derivatives

2022 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Financial instruments - Assets	346,785	15,850	277,455	160,360	12,826	0
Financial instruments - Liabilities	199,372	0	100,087	0	941	0
NET FINANCIAL INSTRUMENTS	-147,413	-15,850	-177,367	-160,360	-11,885	0

2022 ‒ (In € thousand)	Total
Financial instruments - Assets	813,276
Financial instruments - Liabilities	300,400
NET FINANCIAL INSTRUMENTS	-512,876

2023 ‒ (In € thousand)	France Offices	Italy Offices	Hotels in Europe	German Residential	Germany Offices	Other (including France Residential)
Financial instruments - Assets	231,074	7,334	177,633	96,378	9,664	0
Financial instruments - Liabilities	108,206	0	72,525	4,114	260	0
NET FINANCIAL INSTRUMENTS	-122,868	-7,334	-105,108	-92,264	-9,404	0

2023 ‒ (In € thousand)	Total
Financial instruments - Assets	522,082
Financial instruments - Liabilities	185,105
NET FINANCIAL INSTRUMENTS	-336,977

4.2.8.9 Income statement by operating segment

In accordance with IFRS 12, par. B11, inter-segment transactions, in particular management fees, are indicated separately in this presentation.

(In € thousand) ‒ 2022	France Offices	Italy Offices	Germany Offices	Hotels in Europe	German Residential	Other (France Residential)
Rental income	202,154	140,810	43,965	240,956	280,437	15
Unrecovered property operating costs	-15,028	-15,265	-7,243	-4,995	366	-543
Expenses on properties	-9,015	-5,000	-1,639	-3,432	-19,325	611
Net losses on unrecoverable receivables	-1,486	-621	-756	10,743	-2,282	18
Net rental income	176,625	119,924	34,327	243,272	259,196	101
EBITDA from hotel operating activity & Flex Office	8,699	3,987	0	62,332	0	0
Income from other activities	15,401	-11,165	-36	38	15,243	988
Management and administration income	14,432	679	2,012	16,160	6,889	9,591
Business expenses	-2,902	-566	-1,116	-11,932	-1,835	-14
Overheads	-35,097	-18,069	-5,962	-19,907	-51,761	-12,359
Net operating costs	-23,567	-17,956	-5,066	-15,679	-46,707	-2,782
Depreciation of operating assets	-10,844	-4,639	-882	-37,829	-3,721	-1,017
Net change in provisions and other	753	74	372	9,005	56	2,104
OPERATING INCOME	167,067	90,225	28,715	261,140	224,067	-606
Net income from inventory properties	-128	-2,396	0	0	163	0
Income from asset disposals	-1,637	-2,785	-236	2,417	935	190
Income from value adjustments	-196,415	-45,433	-34,531	92,160	202,424	0
Income from disposal of securities	24,868	11	0	-2	-1	0
Net income from changes in scope	-306	-120	6	-14	2	0
OPERATING RESULT	-6,551	39,502	-6,046	355,701	427,590	-416
Cost of the net financial debt	-30,628	-14,994	-6,938	-52,146	-35,475	479
The interest cost for rental liabilities	-39	-19	-478	-15,217	0	-59
Value adjustment on derivatives	185,424	6,748	11,263	200,545	178,624	0
Discounting and foreign exchange gains or losses	0	0	0	-589	0	0
Exceptional amortisation of loan issue costs	0	-902	0	-225	-326	0
Share of income from companies accounted for under the equity method	31,511	62	0	19,428	0	0
NET INCOME BEFORE TAX	179,716	30,397	-2,199	507,498	570,413	4
Deferred taxes	-408	-20,753	1,037	3,974	-97,804	-37
Corporate taxes	71	1,491	-549	-9,551	-15,083	-317
NET INCOME FOR THE PERIOD	178,379	11,135	-1,711	501,920	457,526	-350
Net income from non-controlling interests	19,247	36,146	17,466	291,983	162,365	0
NET INCOME FOR THE PERIOD -GROUP SHARE	160,133	-25,010	-19,176	209,937	295,161	-350

(In € thousand) ‒ 2022	Intercos Intersector	31/12/2022
Rental income	-2,356	905,981
Unrecovered property operating costs	2,584	-40,124
Expenses on properties	8,667	-29,133
Net losses on unrecoverable receivables	0	5,616
Net rental income	8,895	842,340
EBITDA from hotel operating activity & Flex Office	-89	74,929
Income from other activities	-159	20,310
Management and administration income	-33,692	16,071
Business expenses	10,716	-7,649
Overheads	13,501	-129,654
Net operating costs	-9,475	-121,232
Depreciation of operating assets	0	-58,932
Net change in provisions and other	203	12,567
OPERATING INCOME	-625	769,983
Net income from inventory properties	0	-2,361
Income from asset disposals	625	-491
Income from value adjustments	0	18,205
Income from disposal of securities	0	24,876
Net income from changes in scope	0	-432
OPERATING RESULT	0	809,780
Cost of the net financial debt	-0	-139,702
The interest cost for rental liabilities	0	-15,812
Value adjustment on derivatives	0	582,604
Discounting and foreign exchange gains or losses	0	-589
Exceptional amortisation of loan issue costs	0	-1,453
Share of income from companies accounted for under the equity method	0	51,001
NET INCOME BEFORE TAX	0	1,285,830
Deferred taxes	0	-113,991
Corporate taxes	0	-23,938
NET INCOME FOR THE PERIOD	0	1,147,901
Net income from non-controlling interests	0	527,207
NET INCOME FOR THE PERIOD -GROUP SHARE	0	620,694

(In € thousand) ‒ 2023	France Offices	Italy Offices	Germany Offices	Hotels in Europe	German Residential	Other (France Residential)
Rental income	197,971	132,978	46,971	265,817	293,556	0
Unrecovered property operating costs	-15,125	-13,125	-4,347	-3,434	-1,732	-373
Expenses on properties	-9,232	-3,721	-1,371	-3,395	-21,769	-588
Net losses on unrecoverable receivables	359	136	-909	-525	-2,463	11
Net rental income	173,973	116,268	40,344	258,463	267,592	-950
EBITDA from hotel operating activity & Flex Office	10,437	5,611	0	75,294	0	0
Income from other activities	1,656	1,553	185	16	4,294	799
Management and administration income	13,572	797	2,986	7,246	7,415	13,234
Business expenses	-2,017	-389	-1,935	-3,068	-1,622	-4
Overheads	-36,545	-12,865	-6,561	-25,155	-54,678	-12,028
Net operating costs	-24,990	-12,457	-5,510	-20,977	-48,885	1,202
Depreciation of operating assets	-15,459	-4,941	-841	-47,888	-3,287	-1,176
Net change in provisions and other	4,064	-3,718	894	23,833	163	-257
OPERATING INCOME	149,681	102,316	35,072	288,741	219,877	-382
Net income from inventory properties	0	-68	0	-8	-49	0
Income from asset disposals	-29,217	-50	-12	341	-8,924	0
Income from value adjustments	-854,078	-94,391	-281,850	-197,534	-1,009,489	0
Income from disposal of securities	-988	0	0	-2	-221	278
Net income from changes in scope	0	0	-298	-3,791	-106	0
OPERATING RESULT	-734,602	7,807	-247,088	87,748	-798,912	-104
Cost of the net financial debt	-26,150	-23,391	-4,162	-62,932	-49,459	495
The interest cost for rental liabilities	-23	-33	-519	-15,310	0	-56
Value adjustment on derivatives	-69,060	0	-3,551	-66,962	-68,097	0
Discounting and foreign exchange gains or losses	1	0	0	351	0	0
Exceptional amortisation of loan issue costs	-918	-489	0	-417	48	0
Share of income from companies accounted for under the equity method	-33,549	1,205	0	-2,020	0	0
NET INCOME BEFORE TAX	-864,302	-14,901	-255,320	-59,541	-916,420	335
Deferred taxes	-375	6,119	40,119	46,433	161,584	-54
Corporate taxes	-870	-3,956	-1,851	-11,847	-27,551	-466
NET INCOME FOR THE PERIOD	-865,547	-12,738	-217,052	-24,956	-782,387	-185
Net income from non-controlling interests	-158,701	8,836	-36,403	-19,951	-277,861	0
NET INCOME FOR THE PERIOD -GROUP SHARE	-706,845	-21,574	-180,650	-5,005	-504,526	-185

(In € thousand) ‒ 2023	Intercos Intersector	31/12/2023
Rental income	-2,288	935,005
Unrecovered property operating costs	786	-37,350
Expenses on properties	9,290	-30,786
Net losses on unrecoverable receivables	0	-3,391
Net rental income	7,788	863,478
EBITDA from hotel operating activity & Flex Office	0	91,342
Income from other activities	0	8,503
Management and administration income	-26,163	19,087
Business expenses	1,592	-7,443
Overheads	16,781	-131,051
Net operating costs	-7,790	-119,406
Depreciation of operating assets	0	-73,592
Net change in provisions and other	2	24,980
OPERATING INCOME	0	795,305
Net income from inventory properties	0	-125
Income from asset disposals	0	-37,862
Income from value adjustments	0	-2,437,342
Income from disposal of securities	0	-933
Net income from changes in scope	0	-4,195
OPERATING RESULT	0	-1,685,151
Cost of the net financial debt	0	-165,599
The interest cost for rental liabilities	0	-15,941
Value adjustment on derivatives	0	-207,671
Discounting and foreign exchange gains or losses	0	352
Exceptional amortisation of loan issue costs	0	-1,776
Share of income from companies accounted for under the equity method	0	-34,364
NET INCOME BEFORE TAX	0	-2,110,150
Deferred taxes	0	253,826
Corporate taxes	0	-46,541
NET INCOME FOR THE PERIOD	0	-1,902,865
Net income from non-controlling interests	0	-484,080
NET INCOME FOR THE PERIOD -GROUP SHARE	0	-1,418,785

4.2.9 Post-closing events

None.

4.3 Statutory Auditors' report on the consolidated financial statements

Fiscal year ending 31 December 2023

To the General Meeting of Covivio,

Opinion

In compliance with the engagement entrusted to us by your General Meetings, we have audited the accompanying consolidated financial statements of Covivio for the fiscal year ended 31 December 2023.

In our opinion, the consolidated financial statements give a true and fair view, in accordance with International Financial Reporting Standards as adopted by the European Union, of the assets and liabilities and of the financial position of the Group at the end of the fiscal year, and of the results of its operations for the fiscal year then ended.

The audit opinion thus formulated is consistent with the content of our report to the company's Audit Committee.

Basis for the audit opinion

Audit framework

We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Our responsibilities under those standards are further described in the "Statutory Auditors' Responsibilities for the Audit of the Consolidated Financial Statements" section of our report.

Independence

We conducted our audit engagement in compliance with independence requirements of rules required by the French Commercial Code and the French Code of Ethics (Code de déontologie) for Statutory Auditors for the period from 1 January 2023 to the date of our report, and specifically we did not provide any prohibited non-audit services referred to in Article 5, paragraph 1 of Regulation (EU) 537/2014.

Justification of our assessments - Key audit matters

In accordance with the requirements of Articles L. 821-53 and R. 821-180 of the French Commercial Code relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional judgement, were of most significance in our audit of the consolidated financial statements for the current period, as well as how we addressed those risks.

These assessments were made in the context of the audit of the consolidated financial statements taken as a whole and the formation of our opinion expressed above. We do not express an opinion on the elements of these consolidated financial statements taken in isolation.

Valuation of investment property

Risk identified

Having considered the activity engaged in by Covivio, the fair value of the Group's investment properties at 31 December 2023 amounted to 81% of consolidated assets or €20.2 billion. Under the option offered by IAS 40, investment properties are assessed at their fair value. Changes in fair value are recorded in the income statement. Investment property is not amortised.

Note 4.2.5.1.1 to the consolidated financial statements states that the Group's investment property is subject to valuation by independent property valuers.

Valuation of investment property is a complex matter requiring the exercise of significant judgement by the Group's independent appraisers based on the data communicated by the Group's management.

In addition, the economic context, marked by inflation and the increase in borrowing rates, creates uncertainty about the estimates used by independent appraisers for appraisal values. These estimates are based on assumptions about discount rates, yield rates and rental data that depend on market trends and which could be different in the future.

We considered the valuation of investment properties to be a key audit matter due to the material nature of its impacts on the consolidated financial statements and the significant degree of judgement involved in determining the main assumptions used in the valuation of investment properties.

Our response

We obtained an understanding of your Group's process of valuation of its investment property.

Our procedures also involved:

―	assessing the competence and independence of the Group's property valuers on the basis of the requirements for rotation and bases of remuneration defined by the Group;
―	obtaining an understanding of the Group's written instructions to its property appraisers describing the nature of the services required and the scope and limitations of their work with particular regard to the verification of the information provided by the Group;
―	assessing, on a test basis, the relevance of the information provided by the entities' Finance Departments to the property valuers for the purpose of determining the fair value of their investment property, including rent schedules, other accounting data and capital expenditure budgets;
―	analysing the valuation assumptions applied by the property valuers, such as applicable discount rates, yield rates, rental data and rental values, by comparing them in the context of the Ukraine war and inflation with available market data;
―	interviewing certain professional property valuers in the presence of the Group's Finance Departments and assessing, by the inclusion of valuation specialists, the consistency and relevance of the valuation approach applied and of the main associated instances of the exercise of professional judgement;
―	reconciling the resulting property valuations with the amounts included in the consolidated financial statements;
―	assessing the appropriateness of the information provided in note 4.2.5.1.1 to the consolidated financial statements.

Specific verifications

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by French laws and regulations of the Group's information given in the management report of the Board of Directors.

We have no matters to report as to its fair presentation and its consistency with the consolidated financial statements.

We attest that the consolidated statement of non-financial performance required by Article L. 225-102-1 of the French Commercial Code is included in the Group's management report, it being specified that, in accordance with Article L. 823-10 of this Code, we have verified neither the fair presentation nor the consistency with the consolidated financial statements of the information contained therein.

Report on other legal and regulatory requirements

Format of presentation of the consolidated financial statements intended to be included in the annual financial report

In accordance with professional standards applicable to Statutory Auditors' work relating to the annual and consolidated financial statements presented in the European single electronic format, we have also verified compliance with this format, as defined in European delegated Regulation no 2019/815 of 17 December 2018, in the presentation of the consolidated financial statements intended to be included in the annual financial report mentioned in section I of Article L. 451-1-2 of the French Monetary and Financial Code, prepared under the responsibility of the Chief Executive Officer. With regard to consolidated financial statements, our procedures include verifying that the mark-up of these financial statements complies with the format defined by the aforementioned regulation.

Based on our work, we conclude that the presentation of the consolidated financial statements intended to be included in the annual financial report complies, in all material respects, with the European single electronic format.

Due to the technical limitations inherent in the macro-tagging of consolidated financial statements using the European single electronic format for annual reports, the content of certain tags in the notes to the financial statements may not be identical to those used in the consolidated financial statements attached to this report.

It is not our responsibility to verify that the consolidated financial statements that will be included by your company in the annual financial report filed with the AMF correspond to those on which we carried out our work.

Appointments of the Statutory Auditors

We were appointed as Statutory Auditors of Covivio by the General Meeting held on 22 May 2000 in the case of MAZARS, and 24 April 2013 in the case of ERNST & YOUNG et Autres.

As at 31 December 2023, MAZARS and ERNST & YOUNG et Autres were in the twenty-fourth year and eleventh year, respectively, of total uninterrupted engagement.

Previously, Groupe PIA that became Conseil Audit & Synthèse (acquired by ERNST & YOUNG Audit in 2010) was the Statutory Auditor from 2007 to 2012.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to liquidate the company or to cease operations.

The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risk management systems and, where applicable, its internal audit, regarding the accounting and financial reporting procedures.

The consolidated financial statements were approved by the Board of Directors.

Statutory Auditors' responsibilities for the audit of the consolidated financial statements

Audit purpose and audit approach

Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

As specified in Article L. 821-55 of the French Commercial Code, our statutory audit does not include assurance on the viability of the company or the quality of management of the affairs of the company.

As part of an audit conducted in accordance with professional standards in France, the Statutory Auditor exercises professional judgement throughout the audit. Further, the Statutory Auditor:

―	identifies and assesses the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
―	obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control;
―	evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management in the consolidated financial statements;
―	assesses the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report. However, future events or conditions may cause the company to cease to continue as a going concern. If it concludes that a material uncertainty exists, it draws users' attention in the audit report to the information in the consolidated financial statements regarding this uncertainty or, if such information is not provided or is inadequate, issues a modified opinion or refuses to certify the financial statements;
―	evaluates the overall presentation of the consolidated financial statements and assesses whether these statements represent the underlying transactions and events in a manner that achieves fair presentation;
―	obtains sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. The Statutory Auditor is responsible for the direction, supervision and performance of the audit of the consolidated financial statements and for the opinion expressed on these consolidated financial statements.

Report to the Audit Committee

We submit a report to the Audit Committee which includes in particular a description of the scope of the audit and the audit programme implemented as well as the results of our audit. We also report, if any, significant deficiencies in internal control regarding the accounting and financial reporting procedures that we have identified.

Our report to the Audit Committee includes the risks of material misstatement that, in our professional judgement, were of most significance in the audit of the consolidated financial statements of the current period and which are therefore the key audit matters that we are required to describe in the present report.

We also provide the Audit Committee with the declaration provided for in Article 6 of Regulation (EU) no 537/2014, confirming our independence within the meaning of the rules applicable in France, such as they are set in particular by Articles L. 821-27 to L. 821-34 of the French Commercial Code and in the French Code of Ethics (Code de déontologie) for Statutory Auditors. Where appropriate, we discuss with the Audit Committee the risks that may reasonably be thought to bear on our independence, and the related safeguards.

Paris-La Défense, 18 March 2024

The Statutory Auditors
MAZARS

Claire Gueydan-O'Quin

ERNST & YOUNG et Autres

Anne Herbein

4.4 Individual financial statements at 31 December 2023

4.4.1 Balance sheet

Assets

		31/12/2023				31/12/2022
(In € thousand)	Note 4.5.3	Gross	Amortisation, depreciation and provisions	Net	Of which net Italian Establishment 31/12/2023	Net
Intangible fixed assets	1.1	28,617	12,156	16,462	4,648	15,649
Start-up costs		0	0	0	0	0
Software and similar rights		28,063	12,156	15,907	4,648	3,744
Goodwill ⁽¹⁾		0	0	0	0	0
Other intangible fixed assets		555	0	555	0	0
Intangible fixed assets in progress		0	0	0	0	11,905
Tangible fixed assets	1.1	1,824,618	416,793	1,407,826	1,137,946	1,544,294
Land		665,443	41,077	624,366	529,235	683,553
Buildings		1,094,271	362,807	731,464	590,035	812,703
Other		38,024	11,033	26,991	762	28,476
Tangible fixed assets in progress		26,414	1,876	24,538	17,448	19,561
Advanced payments and deposits		467	0	467	467	0
Financial assets		6,712,778	484,818	6,227,959	988,165	6,604,746
Investments	1.2	5,176,737	422,441	4,754,297	890,087	5,033,993
Investment-related receivables		0	0	0		1,900
Equity securities held for investment			0			0
Other long-term investments	1.4	107,245	2,196	105,049	84,080	68,626
Loans	1.3	1,427,944	60,182	1,367,762	13,998	1,499,439
Other		852	0	852	0	788
Total I - Fixed assets	1	8,566,013	913,767	7,652,246	2,130,760	8,164,689
Inventories and work-in-progress		152	152	0	0	13,800
Advances and advanced payments		3,200		3,200	3,200
Operating receivables	2.1	105,140	30,264	74,876	14,569	110,529
Trade receivables and related accounts		28,603	16,610	11,994	1,579	12,326
Current accounts and other receivables		76,537	13,654	62,883	12,990	98,203
Marketable securities	2.2	553,256	3,458	549,798	0	59,384
Treasury shares		47,180	3,458	43,722		54,121
Term accounts and other securities		506,076	0	506,076		5,263
Cash and near cash		90,949		90,949	1,668	146,458
Prepaid expenses and accruals	2.3	101,186		101,186	1,151	95,256
Treasury instruments	2.3	2,174		2,174		3,696
Total II - Current assets	2	856,058	33,874	822,184	20,587	429,123
Deferred expenses (III)	2.3	14,624		14,624	2,165	9,813
Bond redemption premiums (IV)		46,306		46,306		8,799
Currency translation gains (V)
TOTAL (I + II + III + IV + V)		9,483,001	947,641	8,535,360	2,153,512	8,612,424

(In € thousand)	Of which net Italian Establishment 31/12/2022
Intangible fixed assets	1,835
Start-up costs	0
Software and similar rights	1,835
Goodwill ⁽¹⁾	0
Other intangible fixed assets	0
Intangible fixed assets in progress	0
Tangible fixed assets	1,224,958
Land	580,312
Buildings	638,747
Other	800
Tangible fixed assets in progress	5,099
Advanced payments and deposits	0
Financial assets	942,245
Investments	894,289
Investment-related receivables	0
Equity securities held for investment	0
Other long-term investments	47,956
Loans	0
Other	0
Total I - Fixed assets	2,169,037
Inventories and work-in-progress	13,800
Advances and advanced payments
Operating receivables	31,317
Trade receivables and related accounts	4,173
Current accounts and other receivables	27,144
Marketable securities	0
Treasury shares	0
Term accounts and other securities	0
Cash and near cash	983
Prepaid expenses and accruals	1,174
Treasury instruments	0
Total II - Current assets	47,275
Deferred expenses (III)	3,107
Bond redemption premiums (IV)	0
Currency translation gains (V)
TOTAL (I + II + III + IV + V)	2,219,419

Liabilities

(In € thousand)	Note 4.5.3	31/12/2023	Of which Italian Establishment 31/12/2023	31/12/2022	f which Italian Establishment 31/12/2022
Shareholders' equity		4,614,442		4,337,375
Capital [of which €303,019 thousand paid]		303,019		284,358
Issue premium, merger premium and additional paid-in capital		4,311,423		4,053,017
Revaluation reserves		0		0
Reserves and retained earnings		46,679		113,749
Legal reserve		30,302		28,413
Statutory or contractual reserves
Revaluation reserves available for distribution		0		0
Other		12,826		83,453
Retained earnings		3,552		1,883
Profit (loss) for the fiscal year		-8,417	-55,835	282,954	453
Investment subsidies
Regulated provisions		34,100		34,125
Total I - Shareholders' equity	3	4,686,804	-55,835	4,768,203	453
Other shareholders' equity
Proceeds from issue of participating shares
Conditional advances
Total I bis - Shareholders' equity		0		0	0
Provisions for risks		27,754	1,424	26,668	2,473
Provisions for losses		2,450	3	2,406	3
Total II - Provisions for contingencies and losses	4	30,204	1,427	29,075	2,476
Debts
Financial liabilities	5	3,734,191	650,714	3,729,010	623,726
Convertible bonds	5.1	0	0	0	0
Other bonds		3,520,116	607,157	2,819,446	607,160
Borrowings and debts with credit institutions ⁽¹⁾		50,944	0	746,417	0
Current accounts and various financial debts		163,130	43,557	163,147	16,565
Advanced and pre-payments received		7,658	0	6,445	351
Operating payables		35,094	16,299	28,232	11,567
Trade payables and related accounts		15,334	9,455	12,870	5,931
Tax and social security liabilities		19,760	6,845	15,362	5,636
Sundry liabilities		15,990	7,783	15,987	9,363
Debt on fixed assets and related accounts		5,276	4,390	9,791	7,786
Other		10,714	3,393	6,196	1,576
Treasury instruments	5.2	9,269	0	15,773	0
Pre-booked income		16,150	370	19,698	1,200
Total III - Current liabilities		3,818,352	675,167	3,815,146	646,206
Currency translation losses (IV)
Liaison account with Establishments		0	1,532,753	0	1,570,284
TOTAL (I + I BIS + II + III + IV)		8,535,360	2,153,512	8,612,424	2,219,419
(1) Of which current bank borrowings and bank overdraft.		254		28

4.4.2 Income statement

(In € thousand)	Note 4.5.4	31/12/2023	Of which Italian Establishment 31/12/2023	31/12/2022	Of which Italian Establishment 31/12/2022
Operating income
Sales of goods		14,000	14,000	1	1
Sales (goods and services)		140,382	65,941	138,140	69,062
Net revenues	1.1	154,382	79,941	138,141	69,063
Production in stock		32	32	169	169
Reversals of provisions (and depreciation) and transferred charges	1.2	59,666	35,430	13,183	8,611
Other income		920	85	164	30
Total I - Operating income	1	215,001	115,488	151,657	77,873
Operating expenses
Purchases - Real estate traders		32	32	170	170
Change in inventories - Real estate companies		40,515	40,515	2,863	2,863
Other purchases and external expenses		47,765	16,191	42,057	18,972
Duties, taxes and related payments		12,674	8,021	12,391	8,443
Salaries and wages		31,088	6,751	32,456	7,800
Social security charges		10,116	1,661	10,574	1,785
Allowance for depreciation and provisions
On fixed assets: amortisation and depreciation charges		43,862	30,354	48,191	34,372
On fixed assets: impairments		73,173	64,427	23,311	17,897
On current assets: impairments		1,738	1,068	4,926	3,453
For contingencies and expenses: provisions		1,623	215	2,553	729
Other expenses		5,291	3,095	3,086	2,431
Total II - Operating expenses	1.3	267,877	172,331	182,578	98,915
1. Operating income (I-II)	1	- 52,876	- 56,842	- 30,921	- 21,043
Financial income
Share of income from joint operations
Profit or loss transferred III		1,249	0	1,030	0
Losses or profit transferred IV		1,988	0	0	0
Investment	2.1	441,205	50,241	286,826	41,293
From other marketable securities and fixed asset receivables		9,718	193	9,015	0
Other interest and similar income		83,368	410	35,323	679
Statutory interest		2,731		3,232
Merger premiums	2.2	33,647	0	113,430	117
Reversals of provisions and transferred expenses	2.3	16,762	2,134	60,877	19,996
Net income from disposal of marketable securities		122	0	3	0
Total V - Financial income	2	587,552	52,979	508,706	62,086
Financial expenses
Allowance for depreciation and provisions		397,059	31,972	96,204	6,577
Interest and similar expenses		133,174	22,843	106,820	28,469
Merger deficits	2.2	13,143	0	625	0
Net expenses from disposal of marketable securities		8,928		2,921	0
Total VI - Financial expenses	2	552,304	54,815	206,570	35,047
2. Net financial income (V - VI)	2	35,248	-1,836	302,135	27,039
3. Current net income before tax (I-II+III-IV+V-VI)		- 18,368	- 58,678	272,244	5,996
Non-recurring income
On management transactions		169	123	2,257	2,252
On capital transactions		117,204	29,586	221,461	91,383
Reversals of provisions and transferred expenses		125	0	0	0
Total VII - Non-recurring income	3	117,498	29,709	223,717	93,635
Non-recurring expenses
On management transactions		87	5	83	1
On capital transactions		103,474	23,823	212,580	98,818
Allowance for depreciation and provisions		99		101	0
Total VIII - Non-recurring expenses	3	103,660	23,828	212,763	98,819
4. Non-recurring income (VII-VIII)	3	13,838	5,881	10,954	- 5,184
Employee profit-sharing (IX)		0	0	0	0
Corporate income tax (X)	4	3,888	3,038	245	359
Total revenue (I+III+V+VII)		921,300	198,176	885,110	233,593
Total expenses (II+IV+VI+VIII+IX+X)		929,717	254,011	602,156	233,140
PROFIT OR LOSS		-8,417	-55,835	282,954	453

4.5 Notes to the individual financial statements

4.5.1 Significant events during the fiscal year

4.5.1.1 Acquisitions and construction work on properties under development

―	€4,234 thousand of works carried out on Meudon Canopée, this asset was sold to Meudon June.
―	€330 thousand in work carried out on Fontenay-sous-Bois Le Floria.
―	€9,357 thousand of works carried out on Milano Corso Italia.

As of 31 December 2023, there is one building under development in Covivio France - Silex 3 and one building under development in Covivio Italy, namely Milano Corso Italia.

4.5.1.2 Disposals of real-estate assets

Disposals concern the following assets:

(In € thousand)	Net book value	Disposal price	Capital gains or losses	Market value at 31/12/202022
Sales:
Meudon Ducasse	18,643	27,400	8,757	27,200
Meudon Canopée	23,445	20,906	-2,539	12,000
Le Ponant	4,003	10,530	6,527	10,530
Les Andelys		150	150
L'alicante	85	137	52
COVIVIO FRANCE	46,176	59,123	12,947	49,730
Forli - via della Libertà	1,960	2,000	40	1,960
Reggio Emilia - via della Prev Sociale	4,300	4,300	0	4,300
Milano - piazza Duca d'Aosta	16,208	23,000	6,792	22,760
Edificio school - Symbiosis	109	130	21	130
COVIVIO ITALY	22,578	29,430	6,852	29,150
COVIVIO	68,754	88,553	19,799	78,880

4.5.1.3 Changes in equity investments

Change in the ownership interest in subsidiaries

―	No changes in Covivio Hotels shares.

The stake in Covivio Hotels is 43.86%.

Other changes in equity interests

―	On 21 March 2023, Covivio took part in the capital increase of Hotel N2, the percentage ownership of Hotel N2 is 50%.
―	On 05 June 2023, Covivio took part in the capital increase of Lenovilla. Covivio holds 4,386 out of a total of 8,756 shares.
―	Covivio participated in the capital increase of Covivio Alexanderplatz for an amount of €30,056 thousand in accordance with the shareholders' agreement signed on 8 June 2021.

4.5.1.4 Simplification of structures

Mergers with the full transfer of assets and liabilities (FTA) were carried out in 2023 to simplify the Group's corporate structure.

Subsidiary involved	Nature and date of the transaction	Corporate purpose
SNC La Marina Fréjus	FTA on 31/03/2023 without retroactive tax effect	The purpose of the company is to negotiate and enter into all contracts necessary for the transformation/development/change of use of old buildings and/or the construction of new buildings.
SCI FACTOR E	FTA on 31/07/2023 without retroactive tax effect	The purchase, in the future state of completion, of land, buildings or real estate complexes located in Bordeaux as well as the ownership, management, operation by lease or otherwise, development, and construction of these real estate properties.
SCI POMPIDOU	FTA on 30/11/2023 without retroactive tax effect	Acquisition of any land and/or real estate rights or buildings, the construction of buildings, ownership and administration of these buildings and/or real estate rights, etc.
SNC ORLY PROMO	FTA on 30/11/2022 without retroactive tax effect	The negotiation and conclusion of all contracts necessary for the construction of buildings located in the municipalities of Paray Vieille Poste and Orly, and all transactions directly or indirectly related to the construction of buildings (i) as a developer for the on behalf of third parties, under a property development contract or (ii) as project manager.
SCI LE PONANT 1986	FTA on 31/12/2023 without retroactive tax effect	The off-plan acquisition of the "Le Ponant" building in Paris's 15 ^th arrondissement, in the ZAC Citröen-Cevennes, as well as its administration, operation by lease or otherwise, maintenance and any kind of development.
SCI Chateaudun	FTA on 31/12/2023 without retroactive tax effect	Acquisition and management of real estate assets and rights located at 1 rue de Châteaudun - 63000 Clermont Ferrand.
Silexpromo SNC	FTA on 31/12/2023 without retroactive tax effect	Negotiation and conclusion of all contracts necessary for the construction of buildings and all related operations.

4.5.1.5 Capital increase

During the fiscal year, the share capital changed as follows:

―	Creation of 6,220,293 shares, as part of the dividend payment in shares, for a par value of €18,660,879

The total capital as at 31 December 2023 stood at €303,019,167, up from €284,358,288 at 31 December 2022, an increase of €18,660,879. It is made up of 101,006,389 shares, all of the same class, with a par value of €3 each, amounting to €303,019,167.

At 31 December 2023, the company held 844,509 treasury shares.

4.5.1.6 Diversification of financing and repayment of bank debt

In 2023, Covivio repaid credit lines and commercial paper for a total amount of €696 million and issued a bond and two taps totalling €698 million.

The Italian Establishment's borrowings amount to €607.1 million.

4.5.1.7 Main indicators

The main financial aggregates are as follows:

(In € thousand)	2023	2022
Balance sheet total	8,535,360	8,612,424
Revenues	154,382	138,141
Dividends received from subsidiaries	441,205	286,826
Financial expenses	552,304	206,570
Earnings for the fiscal year	-8,417	282,954

4.5.2 Accounting policies and methods

Covivio is the parent company of the Covivio group, and prepares its consolidated financial statements according to IFRS.

Covivio is consolidated via the equity method by Delfin.

The balance sheet and income statement are drawn up in accordance with French legislation and generally accepted accounting principles in France.

The notes are prepared at the closing date in accordance with ANC Regulation 2014-03 published by the Decree of 8 September 2014 et seq. currently in force.

General accounting conventions were applied, respecting the prudence principle, in accordance with the following basic assumptions:

―	going concern;
―	consistency of accounting policies from one fiscal year to the next;
―	independent fiscal years.

And in accordance with the rules for preparing and presenting annual financial statements pursuant to the French law of 30 April 1983 and the Implementation Decree of 29 November 1983.

The historical cost method was adopted as the basic method of accounting.

Fixed assets have been recorded under the component method since 1 January 2005.

The annual financial statements are presented in thousands of euros, rounded to the nearest thousand euros. Rounding differences may generate minor differences between statements.

4.5.2.1 Intangible fixed assets

Intangible fixed assets are valued at cost.

Software is amortised on a straight-line basis over three years. Software acquired after moving the company headquarters to Divo is amortised over 10 years.

4.5.2.2 Tangible fixed assets

Tangible fixed assets are valued at cost, which corresponds to the purchase price and related costs, or their contribution value.

The company has not opted for borrowing costs to be capitalised in the acquisition cost of assets.

Tangible fixed assets are depreciated on a straight-line basis according to the expected useful life of the various components of the portfolio.

The breakdown by components is based on the grid recommended by the French Real Estate and Real Estate Management Federation (FSIF), according to the type of asset.

Depreciation schedules for the various types of fixed assets (residential or office):

Breakdown of the buildings	Method	Term
Building structures	L	60 and 80 years
Facades and external joinery	L	30 and 40 years
General and technical facilities	L	20 and 25 years
Fittings	L	10 years

These periods are adjusted with obsolescence factors applied to each asset.

Breakdown of other tangible fixed assets	Method	Term
Miscellaneous fixtures and fittings	L	10 years
IT equipment	L	5 years
Office equipment	L	10 years

At each balance sheet date, the company assesses if there are any indications that an asset has been materially impaired. In such cases, an impairment charge may be recorded in income or reversed, as appropriate.

The amount of any significant impairment is determined on an asset-by-asset basis in line with a comparison between the market value (excluding duties), calculated on the basis of independent appraisals, and the net book value.

An objective indication of the loss of value can be seen when the appraisal value is at least €150 thousand lower than the net book value. However, even if the difference is less than €150 thousand, an impairment charge will be recognised where the appraised value was less than the net book value for two years running.

Where an impairment arises, it will be monitored and recognised with no threshold conditions.

Such impairments, which recognise the non-definitive and non-irreversible reduction in the value of certain portfolio assets in relation to their book value, are recognised in assets under "Amortisation, depreciation and impairment".

The impairment is charged to each component on a pro rata basis.

The recording of an impairment results in a revision of the depreciable base and, if applicable, the depreciation schedule for the assets concerned.

Building works, major renovation works and significant upgrading works, together with the restoration of apartments or premises upon re-letting, are capitalised.

Conversely, maintenance work which ensures the optimum preservation of the real-estate portfolio and regular maintenance work are recognised as expenses for the fiscal year.

4.5.2.3 Financial assets

Financial assets are valued at cost or at their contribution value after deducting any provisions required to restore them to their value in use (if necessary). At the end of the fiscal year, the acquisition cost of the securities is compared to their net asset value. The lower of these values is recorded in the balance sheet. The net asset value of the securities corresponds to their value in use for the company.

In the case of securities held for the long term, value in use is assessed on the basis of the net assets plus any unrecognised capital gains on real estate assets. For the listed subsidiary, their EPRA NDV NAV are used.

The acquisition costs are incorporated in the cost price of financial assets and amortised over five years in the form of additional amortisation.

Merger losses were recognised following the mergers of Covivio with Bail Investissement in 2006, with AKAMA in 2011, and with FR IMMO in 2013, based on the value of the assets contributed. At each sale of assets, a reversal of these deficits is made. Similarly, a provision is recorded on the merger deficit when an unrealised capital loss emerges between the appraised value and the net book value at each year-end.

The change in accounting treatment of merger losses further to ANC Regulation 2015-06 modified the accounting rules applicable to merger losses for fiscal years starting from 1 January 2016.

Since 2016, merger deficits are allocated to the assets contributed (underlying assets) in specific accounts for asset categories, and they are amortised, depreciated and removed from the assets in accordance with the same methods as for the underlying assets:

―	merger loss on intangible fixed assets;
―	merger loss on tangible fixed assets;
―	merger loss on financial assets;
―	merger loss on current assets.

4.5.2.4 Trade receivables and related accounts

Receivables are stated at their par value. A provision for impairment is recorded when the recoverable value is lower than the book value.

A provision for impairment is recorded for each tenant with unpaid receivables, based on the risk incurred. The general criteria for establishing impairments, except in particular cases, are as follows:

―

for current tenants:

―	no provision for tenants whose payables are less than three months overdue,
―	50% of the amount of receivables for tenants whose receivables are between three and six months overdue,
―	100% of the total amount of receivables for tenants whose receivables are more than six months overdue;

―

for departed tenants:

―	no provision for tenants whose payables are less than three months overdue,
―	100% of the total amount of receivables for tenants whose receivables are more than three months overdue.

For commercial customers, receivables and theoretical provisions deriving from the above rules are examined case-by-case to take specific situations into consideration.

4.5.2.5 Derivatives

Application of Regulation 2015-05 of 2 July 2015 of the French Financial Markets Authority (Autorité des Marchés Financiers -AMF) concerning financial instruments and hedging has been mandatory since 1 January 2017.

To this end, Covivio uses simple, standard and liquid derivatives, available on markets, namely swaps, caps, tunnel options (purchase of a cap and sale of a floor), particularly for the purposes of dynamic hedging of the total interest-rate risk existing on its fixed-rate debt.

Certain interest rate derivatives may include optimisation components, making it possible to increase the hedged rate, without taking any additional risk as described in Article 628-16 of the aforementioned regulation.

Accordingly, in Covivio's separate financial statements the instruments hedging Covivio debt qualify as hedges and those hedging the debt of subsidiaries are to be regarded as derivatives in standalone open position. Over-hedging can also occur temporarily in dynamic hedging.

With regard to instruments qualifying as hedges:

―

these are not recorded in the financial statements but shown in the off-balance sheet commitments;

―

the difference between the rate paid or received under these agreements is recognised as a financial income or expense for the fiscal year;

―

the premiums paid or received when hedges are placed are amortised as profit and loss over the hedge period;

―

in the event of an early unwinding of a hedge, the balance paid or received is amortised:

―	over the remaining life of the hedged liability if it is identifiable, or
―	over the remaining life of the unwound instrument.

With regard to derivatives qualifying as Standalone Open Positions (SOP):

―	their change in fair value must be recognised on the balance sheet, offsetting a provisional account;
―	whenever this change in fair value is negative, a provision is recognised for an unrealised capital loss.

4.5.2.6 Provisions for risks and charges

Provisions are defined as liabilities of uncertain duration or amount. A liability is a bond issued to a third party, which is likely or certain to cause an outflow of resources to that third party, without at least an equivalent amount expected from that party.

A contingency provision related to investments is established to cover the negative net equity of subsidiaries and when all of the subsidiary's shares and loans have been impaired.

4.5.2.7 Retirement benefits

Covivio applies the recommendation of the French Accounting Standards Authority no 2013-02 of November 2013 on the valuation and recognition of retirement commitments and similar benefits, updated in November 2021 following the decision of IFRS IC, relating to the allocation of post-employment benefits over periods of service. This recommendation enables the provision for post-employment benefits to be measured in accordance with IAS 19R.

4.5.2.8 Provisions for financial contingencies and expenses:

The provisions for contingencies and expenses on financial instruments are explained in Section 3.5.2.5.

An Isolated Open Position (IOP) must be recognised where the company is in a position of over-hedging (whether the over-hedging is a risk or an unrealised gain). The IOP is recognised in the financial statements as a derivative account and a cash instruments valuation difference account. Where the derivative value is a debt, the company must record a provision for over-hedging. Where the IOP representing a derivative liability is no longer recognised, the provision is reversed and the market value of the derivative on the date on which the hedging relationship is set up is amortised over its residual term.

4.5.2.9 Borrowings, financial debt and bonds

Bank financing usually consists of six bond issues and medium-and long-term credit agreements with varying drawdown periods. Successive drawdowns are recognised in the financial statements at their par value. These agreements include covenant clauses, which are reported under off-balance-sheet commitments.

4.5.2.10 Prepaid expenses

Prepaid expenses correspond to the issue costs of borrowings and are amortised over the loan period. An exceptional amortisation is recognised if the borrowing is redeemed early.

4.5.2.11 Bond redemption premium

These are amortised over the life of the bond.

4.5.2.12 Revenues

Revenues mainly include income related to the following activities:

―	rental income;
―	services income.

Rental income corresponds to rent and expenses charged to building tenants, which are recorded as the service advances.

As a general rule, invoicing is quarterly for tertiary sector assets (offices, etc.) and monthly for residential assets.

For services, revenues are recognised as the service progresses.

4.5.3 Explanation of balance sheet items

Beni Stabili merged with Covivio on 31 December 2018.

From 1 January 2019, the Italian Permanent Establishment has been included in Covivio's income statement.

4.5.3.1 Fixed assets

4.5.3.1.1 Change in gross values

			Increases		Decreases
(In € thousand)	Note 4.5.3	Gross values at 31/12/2022	Acquisitions and works	Transfers	Sales and other disposals	FTA and Merger
Intangible fixed assets		28,706	4,382	0	4,471	0
Concessions, software		16,801	3,065	12,668 ⁽¹⁾	4,471	0
Fixed assets in progress		11,905	1,317	-12,668 ⁽¹⁾
Tangible fixed assets		1,887,658	35,081	-8,609	89,513	0
Land		690,615	5	-1,663	23,515
• Buildings		1,131,771	15,125	12,305	64,930
• Other tangible fixed assets		38,907	47	138	1,068
Deficit on real estate assets		33,471			126
Fixtures and fittings		569			1
Office and IT equipment		3,205	27	138	941
Furniture		1,662	20
• Fixed assets in progress		26,365	19,438	-19,389
• Advanced payments and deposits			467
Financial fixed assets		6,715,719	320,822	0	299,469	24,294
Equity investments	1.2	5,133,959	92,005	-24,915	17	24,294
Investment-related receivables		1,900			1,900
Loans	1.3	1,508,709	197,844	-10,002	268,607
Other long-term investments		70,363	30,881	34,917	28,917
• Securities	1.4	65,998	1,692	34,917	23
• Treasury shares	1.4	4,366	29,189		28,894
Other non-current financial assets		788	92		28
TOTAL FIXED ASSETS		8,632,083	360,285	-8,609	393,453	24,294

(In € thousand)	Gross values at 31/12/2023
Intangible fixed assets	28,617
Concessions, software	28,063
Fixed assets in progress	555
Tangible fixed assets	1,824,618
Land	665,443
• Buildings	1,094,271
• Other tangible fixed assets	38,024
Deficit on real estate assets	33,345
Fixtures and fittings	568
Office and IT equipment	2,429
Furniture	1,681
• Fixed assets in progress	26,414
• Advanced payments and deposits	467
Financial fixed assets	6,712,778
Equity investments	5,176,737
Investment-related receivables	0
Loans	1,427,944
Other long-term investments	107,245
• Securities	102,584
• Treasury shares	4,661
Other non-current financial assets	852
TOTAL FIXED ASSETS	8,566,013

⁽¹⁾ The increase in the software item corresponds to the commissioning of the SAP ERP package for €12,306 thousand.

4.5.3.1.2 Change in equity investments

At 31 December 2023, Covivio held investments in 82 companies.

In addition to equity investments detailed under significant events, one equity investment was made in 2023:

―	Covivio acquired SCI Anjou Promo with a shareholding of 99.90%.

The two largest investments are:

―	Covivio Hotels: €1,325 million;
―	Covivio Holding GmbH: €1,021 million.

Amount at 31/12/2022 (in €k)	5,133,959
Acquisition of securities and similar
SNC Anjou Promo	1
Capital increase
SAS Covivio Alexanderplatz	30,056
Hotel N2	1,850
Zabarella 2023 Srl	13,858
Covivio Development Italy SpA SIINQ	46,200
Covivio Attività Immobiliari 4 S.r.l.	20
Covivio Attività Immobiliari 5 S.r.l.	20
Total increase related to acquisitions and capital increases	92,005
Increase in securities by incorporation of a loan or current account
SCI Lenovilla	10,002
Transfer
QUOTE FONDO PORTA ROMANA	-34,917
Total increase in securities by incorporation of a loan or current account	-24,915
Decrease (disposal)
Zabarella 2023 Srl	17
Total decrease related to capital reductions and disposals	17
Securities released from the company following FTA or merger
SCI Le Ponant	4,162
1 Rue de Chateaudun	2,048
SCI Pompidou	5,000
SCI Factor E	13,081
SNC Orly promo	1
SNC SILEXPROMO	1
SNC La Marina Fréjus	1
Total decrease due to FTAs or mergers	24,294
AMOUNT AT 31/12/2023 (IN €K)	5,176,737

4.5.3.1.3 Detail on loans

The loans consist of:

Type of loan	(In € thousand)
Loans to subsidiaries	1,409,946
Accrued interest on subordinated loans	5,758
Accrued interest on SWAP	12,127
Loans to personnel	48
Other loans	64
TOTAL AT 31/12/2023	1,427,944

Loans to subsidiaries relate to financing for development operations, which primarily comprise the following loans as at 31 December:

(In € thousand)	Outstanding principal due	Accrued interest
SCI du 21 rue Jean Goujon	177,520	0
Covivio Holding GmbH	135,000	0
SCI Danton Malakoff	127,688	0
Omega B	108,796	1,693
SAS 6 rue Fructidor	101,949	2,314
SCI Avenue de la Marne	88,800	0
SCI Rueil B2	76,678	0
SCI N2 Batignolles	72,269	0
SCI Latécoère 2	58,196	0
SCI Charenton	53,147	0
SNC André Lavignolle	45,615	0
9 rue Cuirassiers	40,726	0
SCI Cité Numérique	33,302	0
SCI Meudon Juin	29,335	0
SCI Atlantis	27,240	0
Covivio 2	26,969	628
Palmer Plage	26,603	0
SCI Meudon Saulnier	26,200	0
Acopio GmbH	25,000	0
SCI Euromarseille 2	21,143	0
Covivio Office Holding GmbH	18,200	366
Covivio Development Trading	13,805	193
32 av. P. Grenier	12,100	0
Others	63,664	565
TOTAL	1,409,946	5,758

Loans to subsidiaries are not covered by a repayment schedule. They are repaid based on each borrower's free cash flow. Nevertheless, a final repayment date, ranging from January 2025 at the earliest to November 2049 at the latest is stipulated in the deed.

4.5.3.1.4 Other long-term investments

This item amounting to €107,245 thousand essentially includes:

Merger deficit on financial assets

Breakdown of merger deficit on financial assets	Amount (In € thousand)
Latécoère	13,914
Palmer Plage	2,175
Dual Center	136
Palmer Montpellier	95
Central Sicaf	32,517
BS Immobiliare 9	10,875
	59,713

Other long-term investments

Breakdown of other long-term investments	Amount (In € thousand)
QUOTE FONDO SECURIS REAL ESTATE	6,259
QUOTE FONDO PORTA ROMANA	34,917
	41,176

Treasury shares

Breakdown of treasury shares	Number of shares	(In € thousand)
Shares held by the company - liquidity agreement	103,501	4,661

A provision was set up for the treasury shares under the liquidity agreement of €15 thousand on the basis of the average share price in December 2023.

4.5.3.1.5 Change in amortisation, depreciation and impairment

(In € thousand)	Note 4.5.3	Amort./ Depr. 31/12/2022	Charges	Reversal and disposal	FTA and Merger	Transfer
Intangible fixed assets		13,057	1,519	2,420		0
Concessions, software		13,057	1,519	2,420	0	0
Merger deficits
Tangible fixed assets		343,364	111,675	29,638	0	-8,609
Buildings		239,573	37,449	8,110		-1,672
Other tangible fixed assets		10,431	1,518	916	0	0
Provisions on land and buildings		93,360	72,708	20,613	0	-6,937
Financial fixed assets		110,974	376,031	2,185	1	0
Investments	1.2	99,966	324,642	2,167	1	0
Loans	1.3	9,270	50,912	0	0	0
Securities		1,720	462	0	0	0
Treasury shares		18	15	18	0	0
TOTAL AMORTISATION, DEPRECIATION AND IMPAIRMENT		467,395	489,225	34,243	1	-8,609

(In € thousand)	Amort./ Depr. 31/12/2023
Intangible fixed assets	12,156
Concessions, software	12,156
Merger deficits	0
Tangible fixed assets	416,793
Buildings	267,241
Other tangible fixed assets	11,033
Provisions on land and buildings	138,519 ⁽¹⁾
Financial fixed assets	484,818
Investments	422,441
Loans	60,182
Securities	2,181
Treasury shares	15
TOTAL AMORTISATION, DEPRECIATION AND IMPAIRMENT	913,767

⁽¹⁾ Each year, the book value of the assets is compared against their estimated market value. An independent appraisal, carried out every six months, serves as a reference for all real estate assets: at 31 December 2023, €152,392 thousand of impairment was recognised on the buildings, i.e. €10,473 thousand and €128,046 thousand on the properties in Italy.

4.5.3.1.6 Breakdown of impairment of equity investments

In the case of securities held for the long term, value in use is assessed on the basis of the net assets plus any unrecognised capital gains on real estate assets. For listed subsidiaries, the company uses the EPRA NDV.

(In € thousand)	31/12/2022	Charges	FTA and Merger	Reversals of provisions	31/12/2023
Covivio Office Holding GmbH	42,551	137,893			180,444
OPCI Office CB 21		88,902			88,902
SAS 6 rue Fructidor		24,787			24,787
Central Sicaf		23,871			23,871
Covivio Office Holding GmbH	42,551	137,893			180,444
OPCI Office CB 21		88,902			88,902
SAS 6 rue Fructidor		24,787			24,787
Central Sicaf		23,871			23,871
Covivio Property	18,924	2,190			21,114
SNC Wellio ^*	19,433	568			20,001
SCI Charenton ^*		16,001			16,001
SARL Covivio Immobiliare 9	6,378	7,629			14,007
Covivio Alexanderplatz		13,877			13,877
Covivio 7 SpA	10,728			2,134	8,594
Covivio 2		5,090			5,090
SCI N2 Batignolles		2,581			2,581
Covivio Développement ^*	1,852				1,852
9 rue Cuirassiers		732			732
Hotel N2	1	499			500
Foncière Margaux ^*	34				34
Covivio Attività Immobiliari 4	3	9			11
SCI Rueil B2 ^*		11			11
Covivio Attività Immobiliari 3	21			10	11
20 avenue Victor Hugo ^*	3				3
Covivio Attività Immobiliari 5		2			2
SCCV Bobigny Le 9 ^e Art ^*		1			1
SCI Latécoère 2 ^*		1			1
SCI Meudon Saulnier ^*	1				1
SNC Bordeaux Lac ^*	1				1
SNC Sucy Parc ^*	1				1
SNC Gambetta Le Raincy ^*	1				1
SNC Normandie Niemen Bobigny ^*	1				1
SNC Valence Victor Hugo ^*	1				1
SNC Nantes Talensac ^*	1				1
SNC Marignane Saint-Pierre ^*	1				1
SNC Jean Jacques Bosc ^*	1				1
SCI Terres Neuves ^*	1				1
SNC André Lavignolle ^*	1				1
SCI de la Louisiane ^*	1				1
SNC Aix en Provence Sezanne ^*	1				1
Meudon Juin ^*	1				1
Cœur d'Orly Promotion	1				1
SNC La Marina Fréjus	1		1		0
EURL Covivio Proptech	3			3	0
N2 Promotion	19			19	0
Boulogne Jean Bouveri	1			1	0
TOTAL EQUITY INVESTMENTS	99,966	324,642	1	2,167	422,441
Other long-term investments	1,720	462		0	2,181
Treasury shares - liquidity agreement	18	15		18	15
TOTAL OTHER NON-CURRENT ASSETS	1,737	477	0	18	2,196
TOTAL WRITE-DOWNS OF CURRENT ACCOUNTS AND OTHER RECEIVABLES	101,703	325,119	1	2,185	424,637

^* Since the impairment of shares was not sufficient to cover their net negative position, the loans or advances in the associates' current accounts that they were granted were impaired in the amount of their net position, and when necessary, a provision for contingencies and expenses was recognised.

Market prices and NAV of listed subsidiaries:

Name of listed subsidiary	Average share price December 2023	EPRA NDV at 31/12/2023
Covivio Hotels	16.4	23.7

As Covivio Hotels EPRA NDV is higher than the value of the shares recorded in Covivio's financial statements, no impairment is to be recognised.

4.5.3.1.7 Breakdown of impairments on loans and current accounts

This table lists loans and current accounts subject to an impairment only.

Receivables and write-downs (in €k)	Gross values of receivables at 31/12/2023	Write-downs at 31/12/22	Charges	FTA charges	Reversals of provisions	Write-downs 31/12/2023
SCI Meudon Saulnier	26,200	8,622	11,900	0	0	20,522
SCI Rueil B2	76,678	0	19,131		0	19,131
Latecoere 2	58,196	0	6,524		0	6,524
SCI Meudon Juin	29,335	0	4,680		0	4,680
SCI de la Louisiane	4,000	84	3,449		0	3,532
SCI Charenton	53,147	0	2,199		0	2,199
SAS 6 rue Fructidor	101,949	0	2,191		0	2,191
SCI 20 av. Victor Hugo	2,850	322	666		0	988
SNC André Lavignolle	45,615	60	169		0	229
SCI Terres Neuves	143	143	0			143
SNC Jean Jacques Bosc	400	39	3			42
Loans	398,513	9,270	50,912		0	60,182
Hotel N2	7,287	0	2,021	0	0	2,021
SNC Normandie Niemen Bobigny	2,467	0	1,938	0	0	1,938
SNC La Marina Fréjus	1,287	166	478	0	0	643
SNC Nantes Talensac	448	83	365	0	0	448
SNC Sucy Parc	1,937	210	133	0	0	343
SNC Gambetta Le Raincy	1,194	197	76	0	0	273
SCI Terres Neuves	148	0	148	0	0	148
EURL Proptech	176	21	121	0	0	142
SNC Wellio	2,252	230	0	102	0	128
Covivio Property	1,048	41	50	0	0	91
Covivio Développement	0	0	0	0	0	0
SNC Le clos de Chanteloup	0	0	0	0	0	0
SNC André Lavignolle	0	0	0	0	0	0
1630 av. Croix Rouge	0	0	0	0	0	0
SNC Saint Germain Hennemont	0	0	0	0	0	0
Others ^*	478	785	31	559	215	42
Current accounts ⁽¹⁾	18,722	1,732	5,360	661	215	6,216
Other receivables	7,149	8,906	0		1,048	7,126
Purchaser unpaid ⁽²⁾	603	23	289		0	312
Debtor accounts	7,752	8,929	289	-732	1,048	7,438
TOTAL WRITE-DOWNS	26,474	10,660	5,650	-71	1,263	13,654

^* Others: write-downs of less than €90 thousand.

⁽¹⁾ Current accounts are impaired by taking into account the negative net equity of subsidiaries and impairments recognised on other receivables.

⁽²⁾ These are receivables from the settlement of expenses from disposed assets.

4.5.3.2 Current assets

4.5.3.2.1 Breakdown of receivables by maturity

(In € thousand)	Gross amount at 31/12/2023	Amount due in less than 1 year	Of which Gross Amount Italian Establishment	Amount due in less than 1 year Italian Establishment	Gross amount at 31/12/2022
Trade receivables and related accounts ⁽¹⁾	28,603	28,603	16,748	16,748	32,040
Of which expenses that may be recovered from tenants ⁽²⁾	6,483	6,483			4,371
Invoice not yet submitted	4,095	4,095	1,446		944
Other receivables ⁽³⁾	76,537	76,537	20,115	19,027	108,863
Current accounts	62,644	62,644	11,276	11,276	59,083
Other receivables	10,376	10,376	7,361	7,361	38,690
Tax receivable	432	432	389	389	8,593
VAT receivables	2,203	2,203	1,089		2,198
Principal's current account	882	882	0		300
TOTAL RECEIVABLES	105,140	105,140	36,863	35,774	140,903

⁽¹⁾ The application of the impairment rules presented in the accounting principles and methods resulted in the flow of impairments detailed below:

Receivables and write-downs (in €k)	Trade receivables at 31/12/2023	Write-downs 31/12/2022	Charges	FTA	Transfer	Reversals of provisions
Trade receivables Italian Establishment	1,410
Trade receivables French Establishment	1,085
Doubtful receivables Italian Establishment	13,891	17,398	1,068	0	732	4,029
Doubtful receivables Covivio France	1,638	2,316	380	49		1,304
TOTAL IMPAIRMENT OF TRADE RECEIVABLES	18,025	19,714	1,448	49	732	5,333

Receivables and write-downs (in €k)	Write-downs 31/12/2023
Trade receivables Italian Establishment
Trade receivables French Establishment
Doubtful receivables Italian Establishment	15,169
Doubtful receivables Covivio France	1,441
TOTAL IMPAIRMENT OF TRADE RECEIVABLES	16,610

⁽²⁾ These expenses result in advance payment requests issued to tenants recorded as liabilities on the balance sheet under "Advanced payments and deposits" in the amount of €7,658 thousand (see Section 4.5.3.5 "Payables").

⁽³⁾ Impairment on other receivables is broken down as follows:

Receivables and write-downs (in €k)	Gross values of receivables at 31/12/2023	Write-downs 31/12/2022	Charges	FTA	Reversals of provisions	Write-downs 31/12/2023
Current accounts	18,722	1,732	5,360	661	215	6,216
Purchaser unpaid	603	23	289	0	0	312
Miscellaneous receivables Italian Establishment	23,257	8,906	0	-732	1,048	7,126
Miscellaneous receivables Covivio France	14,830	0				0
Debtor accounts	38,690	8,929	289	-732	1,048	7,438
TOTAL IMPAIRMENT OTHER RECEIVABLES						13,654

4.5.3.2.2 Marketable securities

The realisable value of the marketable securities was €4,388 thousand as at 31 December 2023. There was no significant unrealised gain, as the Group states the unrealised gains in the last week of each financial year. (Sale/buyback)

(In € thousand)	Gross values at 31/12/2022	Acquisitions	Disposals	Transfer	Gross value at 31/12/2023
Shares held by the company for grant to employees - profit-sharing ⁽¹⁾	0		-1,851	1,851	0
Shares held by the company pending grant ⁽¹⁾	10,767			-3,395	7,372
Shares held by the company for grant to employees - AGA Plan ⁽¹⁾	46,885		-7,077		39,808
	57,652	0	-8,928		47,180
Term account		500,000			500,000
Marketable securities ⁽²⁾	5,263	12,348	-13,222		4,388
Accrued interest on investments		1,688			1,688
	5,263	514,035	-13,222		506,076
TOTAL MARKETABLE SECURITIES	62,915	514,035	-22,150	0	553,256

⁽¹⁾ 596,894 shares allocated to the free share plans for 2021, 2022 and 2023, were the subject of a provision for contingencies and expenses of €18,577 thousand, 52,363 shares pending allocation to free share plans were impaired for €466 thousand based on the average share price in December 2023.
91,751 shares awaiting pending grant to employees, these shares were impaired by €2,991 thousand on the basis of the average share price of December 2023.

⁽²⁾ As at 31 December 2023, the portfolio of marketable securities comprised traditional money market investment funds (SICAV). The company does not make any speculative investments involving a capital risk.

4.5.3.2.3 Accruals - assets

(In € thousand)	Gross value at 31/12/2023	Of which Italian Establishment as at 31/12/2023	Gross values at 31/12/2022	Of which Italian Establishment as at 31/12/2022
Prepaid operating expenses ⁽¹⁾	1,681	1,151	1,856	1,174
Accrued financial expenses	99,505	0	93,401	0
Agent commissions	72		868
Spreading of balances ⁽²⁾	99,433		92,533
Isolated Open Positions ⁽²⁾
Total prepaid expenses	101,186	1,151	95,256	1,174
Treasury instruments (Cap/Floor premiums)	2,085		3,497
Treasury instruments IOP	89		200
Total treasury instruments	2,174	0	3,696	0
Prepaid expenses (Loan issue costs) ⁽³⁾	14,624	2,165	9,813	3,107
TOTAL ACCRUALS	14,624	2,165	9,813	3,107

⁽¹⁾ Prepaid operating expenses correspond to external expenses for which the service will be provided after 31 December 2023.

⁽²⁾ The outstanding premiums to be spread amount to €99.43 million and correspond to a historic accumulation of €228.3 million in premiums paid.

⁽³⁾ Amortisable expenses exclusively comprise the bond issue costs spread over the term of the bond.

4.5.3.3 Shareholders' equity

		Increases	Decreases
(In € thousand)	31/12/2022	Capital increase	Other changes during the year	Allocation of net income/dividend	31/12/2023
Share capital ⁽¹⁾	284,358	18,661			303,019
Share premium ⁽¹⁾	3,238,593	258,413			3,497,006
Additional paid-in capital	296,342				296,342
Merger premiums	518,082			-7	518,075
Revaluation reserves	0				0
Legal reserve	28,413	1,866		23	30,302
Other reserves	83,453			-70,627	12,826
Retained earnings	1,883		1,669		3,552
Allocation of 2022 net income ⁽²⁾	282,954			-282,954	0
Net income for the 2023 fiscal year			-8,417		-8,417
Regulated provisions	34,125		-25		34,100
SHAREHOLDERS' EQUITY	4,768,203	278,940	-6,774	-353,565	4,686,804

⁽¹⁾ Capital increase of 6,220,293 shares as part of the free share plans.

⁽²⁾ The Combined Ordinary and Extraordinary General Meeting on 20 April 2023 allocated net income as described below and paid a dividend of €3.75 per share.

(In € thousand)

Net income for the financial year ended 31 December 2022	282,954
Merger premium	7
Retained earnings	1,883
Distributable revaluation reserve	70,627
TOTAL TO BE ALLOCATED	355,471
Legal reserve	23
Dividends paid out	355,448
TOTAL ALLOCATED	355,471

4.5.3.4 Provisions

				Increases
(In € thousand)	Note	31/12/ 2022	Of which Italian Establishment as at 31/12/2022	FTA and Merger	Operating charges	Financial charges
Provisions for risks		26,668	2,473	0	1,473	9,885
Portfolio-related disputes ⁽¹⁾		5,311	2,151		500
Provisions for litigation		322	322
Provisions relating to investments		4,031			209
Provisions for URSSAF AGA		1,408			764
Provision Plan AGA		15,595				9,885
Provisions for losses		2,406	3	0	359	0
End-of-career benefits	4.5.3.4.1	1,373			284
Provisions for tax - tax audit		3	3
Long service award		861
Provision for departure and salary disputes		170			75
TOTAL		29,074	2,476	0	1,831	9,885

	Decreases
(In € thousand)	Reversals of operating provisions (amount used)	Reversals of operating provisions (amount not used)	Reversals of financial provisions (amount used)	Reversals of financial provisions (amount not used)	31/12/2023	Of which Italian Establishment as at 31/12/2023
Provisions for risks	2,426	942	0	971	27,754	1,424
Portfolio-related disputes ⁽¹⁾	1,723	848			3,240	1,195
Provisions for litigation		93			229	229
Provisions relating to investments	177				4,063
Provisions for URSSAF AGA	527				1,645
Provision Plan AGA			5,932	971	18,577
Provisions for losses	236	79	0	0	2,450	3
End-of-career benefits					1,657
Provisions for tax - tax audit					3	3
Long service award	186				674
Provision for departure and salary disputes	50	79			116
TOTAL	2,663	1,021	0	971	30,204	1,427

⁽¹⁾ Provisions for real estate contingencies and expenses were taken in France and Italy in 2023.

The provision of €500 thousand and the reversal of €2,571 thousand correspond to the rental guarantees given following the disposals of buildings, and repair costs to comply with environmental standards after anomalies were discovered after the disposals in Italy.

4.5.3.4.1 End-of-career benefits

Covivio applies the recommendation of the French Accounting Standards Authority no 2013-02 of November 2013 on the valuation and recognition of retirement commitments and similar benefits, updated in November 2021 following the decision of IFRIC IC relating to the allocation of post-employment benefits over periods of service.

Main assumptions used for end-of-career benefits and long-service awards

Parameters	31/12/2023	31/12/2022
Discount rate	3.370%	3.13%
Annual inflation
Annual wage growth
Executives	2%	4%
Non-managers	2%	3%
Payroll tax rate (IFC only)	49.44%	47.17%
Mortality rate	TGF05/TGH05	TGF05/TGH05
Turnover
Up to 49	11.00%	9.11%
50 and over	0%	0%
Reason for retirement	100% voluntary	100% voluntary

4.5.3.5 Debt

						Of which Italian Establishment
(In € thousand)	Note	31/12/2023	Amount due in less than 1 year	Amount due in 1 to 5 years	Amount due in over 5 years	31/12/2023
Convertible bonds	4.5.3.5.1
Bonds	4.5.3.5.1	3,520,116	323,138	1,398,978	1,798,000	607,157
Borrowings and debts with credit institutions ⁽¹⁾		50,944	50,944
Current accounts and various financial debts		163,130	155,167	7,964		43,557
Total financial debt		3,734,191	529,249	1,406,942	1,798,000	650,714
Advanced payments and deposits ⁽²⁾		7,658	7,658
Trade payables and related accounts ⁽³⁾		15,334	15,334			9,455
Debt on property assets and related accounts ⁽³⁾		5,276	5,276			4,390
Tax and social security payables ⁽⁴⁾		19,760	19,760			6,845
Other payables ⁽⁵⁾		10,714	10,714			3,393
TOTAL REALISED		3,792,933	587,991	1,406,942	1,798,000	674,797

	Of which Italian Establishment
(In € thousand)	Amount due in less than 1 year	Amount due in 1 to 5 years	Amount due in over 5 years	31/12/2022
Convertible bonds
Bonds	303,179	303,978		2,819,446
Borrowings and debts with credit institutions ⁽¹⁾				746,417
Current accounts and various financial debts	40,113	3,444		163,147
Total financial debt	343,292	307,422	0	3,729,010
Advanced payments and deposits ⁽²⁾	0			6,445
Trade payables and related accounts ⁽³⁾	9,455			12,870
Debt on property assets and related accounts ⁽³⁾	4,390			9,791
Tax and social security payables ⁽⁴⁾	6,845			15,362
Other payables ⁽⁵⁾	3,393			6,196
TOTAL REALISED	367,375	307,422	0	3,779,675

⁽¹⁾ Breakdown of loans and debts with credit institutions:
- the outstanding principal on credit lines and commercial paper amounts to €47,000 thousand;
- the accrued interest not yet due for €3,690 thousand;
- securities account €253 thousand.
The amount of borrowings taken out and credit lines drawn totalled €696,000 thousand and only concerned treasury bills.

⁽²⁾ This line refers to calls for funds from tenants.

⁽³⁾ Breakdown of trade payables and fixed asset suppliers.

(In € thousand)	31/12/2023	Of which Italian Establishment
Operating payables	15,334	9,455
Trade payables and related accounts	1,770	738
Trade payables - invoices not received	12,848	8,717
Not used commission payable	717
Debt on property assets and related accounts	5,276	4,390
Trade payables on fixed assets and related accounts	1,725	1,523
Trade payables - hold-backs	2,889	2,867
Trade payables on fixed assets - invoices not received	662
TOTAL TRADE PAYABLES ON FIXED ASSETS	20,610	13,844

⁽⁴⁾ Breakdown of tax and social security payables:
- VAT: €2,521 thousand;
- Income tax of €4,612 thousand;
- Payroll and social security charges: €4,415 thousand;
- Personnel expenses of €6,967 thousand, including provisions for paid leave of €2,122 thousand;
- Organic: €116 thousand;
- Tax liabilities, €1,128 thousand.

⁽⁵⁾ The other payables item corresponds to the balance of accounts:
- Trade receivables in the amount of €8,137 thousand;
- Purchaser creditors €55 thousand;
- Other liabilities: €2,522 thousand.

4.5.3.5.1 Bonds

The bond principal outstanding is €3,493 million, of which €27 million accrued interest.

The table below summarises the major features of these borrowings:

Issue date	20/05/2016
amount of the issue (in millions of euros)	€500 M
Nominal rate	1.875%
Maturity	20/05/2026

Issue date	21/06/2017
amount of the issue (in millions of euros)	€500 M
Nominal rate	1.500%
Maturity	21/06/2027

Issue date	23/02/2018
amount of the issue (in millions of euros)	€95 M
Nominal rate	1.500%
Maturity	21/06/2027

Issue date	17/09/2019
amount of the issue (in millions of euros)	€500 M
Nominal rate	1.125%
Maturity	17/09/2031

Issue date	23/06/2020
amount of the issue (in millions of euros)	€500 M
Nominal rate	1.625%
Maturity	23/06/2030

Issue date	20/01/2021
amount of the issue (in millions of euros)	€100 M
Nominal rate	0.875%
Maturity	20/01/2033

Issue date	13/06/2023
amount of the issue (in millions of euros)	€99 M
Nominal rate	1.125%
Maturity	17/09/2031

Issue date	28/07/2023
amount of the issue (in millions of euros)	€99 M
Nominal rate	1.625%
Maturity	23/06/2030

Issue date	05/12/2023
amount of the issue (in millions of euros)	€500 M
Nominal rate	4.625%
Maturity	05/06/2032

BOND Italy

Issue date	17/10/2017
amount of the issue (in millions of euros)	€300 M
Nominal rate	1.625%
Maturity	17/10/2024

Issue date	20/02/2018
amount of the issue (in millions of euros)	€300 M
Nominal rate	2.375%
Maturity	20/02/2028

4.5.3.5.2 Treasury instruments

This line refers to the fair value at closing of the financial instruments qualified as standalone open positions offset by a provisional account "Adjustment account - Assets".

4.5.3.5.3 Bank covenants

As of 31 December 2023, the ICR, LTV, secured corporate credit and secured financial debt covenants are all respected:

―	LTV < 60%;
―	ICR > 200%;
―	Secured Financial Debt < 25%.

4.5.3.5.4 Accrued expenses and deferred income

(In € thousand)	31/12/2023	Of which Italian Establishment	31/12/2022	Of which Italian Establishment
Trade payables - invoices not received	12,848	8,717	11,908	5,931
Trade payables on fixed assets - invoices not received	662		1,312
Paid leave	2,122	562	1,976	530
Other tax and social security liabilities	6,296	1,777	5,737	469
Accrued interest - Charges	0		5
Accrued interest not yet due on borrowings ⁽¹⁾	30,806	7,157	27,830	7,160
Unused commission to be paid	717		122
TOTAL	53,451	18,213	48,890	14,091
Treasury instruments IOP	9,269		15,773
TOTAL TREASURY INSTRUMENTS	9,269	0	15,773	0
Pre-booked income
Spread of balances ⁽²⁾	15,136		17,795
Isolated Open Positions	644		644
Treasury bills			59
Rental activity	370	370	1,200	1,200
TOTAL PRE-BOOKED INCOME	16,150	370	19,698	1,200

⁽¹⁾ The accrued interest is from treasury bills, bank loans and bonds (€30,806 thousand).

⁽²⁾ On 13 and 16 January 2023, two novations of swaps between TECHNICAL and Covivio were carried out. The novation of 13 January 2023 concerns the €100 million CIC-EST swap at 0.8675% maturing on 30 June 2028, the MtM of this transaction amounting to €9,077 thousand. The novation of 16 January 2023 concerns the €50 million SG swap at 0.8280% maturing on 13 April 2029, the MtM of this transaction amounting to €5,150 thousand. These two transactions were recognised in the income statement. As of 31 December 2023, the amount remaining to be spread over swaps and appearing in BCPs was €15.1 million. Note: the cash payments received amounted to €26.7 million.

4.5.4 Notes to the income statement

At 31 December 2023, net income amounted to €8,417 thousand, compared with €282,954 thousand in 2022.

Beni Stabili merged with Covivio on 31 December 2018.

From 1 January 2019, the Italian Permanent Establishment has been included in Covivio's income statement.

4.5.4.1 Operating income

4.5.4.1.1 Revenues

(In € thousand)	31/12/2023	31/12/2022	Of which Italian Establishments 2023	Of which Italian Establishments 2022
Rental income	105,613	107,457	63,382	66,074
Offices	105,613	107,457	63,382	66,074
Real estate business	14,000	1	14,000	1
Service revenues	34,769	30,684	2,559	2,988
TOTAL	154,382	138,141	79,941	69,063

The change in revenue is explained by the decrease in rental income following the disposal of buildings in 2022, offset by indexation, offset by the increase in services (reinvoicing of services to subsidiaries) and the real estate business.

4.5.4.1.2 Reversals of provisions and transfers of operating expenses

The reversals of provisions and transfers of operating expenses mainly consist of:

(In € thousand)	31/12/2023	Of which Italian Establishment
Reversals of provisions for operating contingencies and charges	3,507	1,265
Provisions for litigation related to the portfolio	2,793	1,265
Provisions for social security contribution (URSSAF) for free share allocation	527
Provision for departure
Provision for pension and long-service
Provisions for long-service awards	186
Reversal of impairment of tangible fixed assets	13,404	2,250
Reversal of impairment on inventories	26,683	26,683
Reversals of provisions for doubtful receivables and purchasers	6,381	5,077
Transferred charges	9,691	156
Loan issue costs	8,252
Benefits in kind awarded to staff	112
Incentive plan invested in shares	1,064
Professional contract	106
Rebilled personnel expenses
Repayment of insurance and other operating expenses	156	156
TOTAL REVERSALS OF PROVISIONS, IMPAIRMENTS AND TRANSFERRED EXPENSES	59,666	35,430

4.5.4.1.3 Operating expenses

(In € thousand)	31/12/2023	31/12/2022	Of which Italian Establishment 2023	Of which Italian Establishment 2022
Purchases - Real estate traders	32	170	32	170
Change in inventory - Real estate traders	40,515	2,863	40,515	2,863
Other purchases and external expenses ⁽¹⁾	47,765	42,057	16,191	18,972
Taxes and related payments	12,674	12,391	8,021	8,443
Staff costs	41,204	43,029	8,412	9,585
Depreciation, amortisation and provisions ⁽²⁾	120,395	78,981	96,064	56,451
Other operating expenses ⁽³⁾	5,291	3,086	3,095	2,431
TOTAL OPERATING EXPENSES	267,877	182,578	172,331	98,915

⁽¹⁾ The increase in the item Other purchases and external expenses is mainly due to the loan issue costs.

⁽²⁾ Breakdown of depreciation, amortisation and provisions given in the note.

(In € thousand)	31/12/2023	31/12/2022	Of which Stable Establishment 2023	Of which Italian Establishment 2022
Amortisation of intangible assets	1,519	890	251	1
Depreciation of rental assets	37,383	43,255	29,076	33,309
Depreciation of furniture and equipment	433	479	85	87
Depreciation of merger deficit	1,085	1,090
Prepaid expenses	3,442	2,477	942	975
Sub-total for depreciation and amortisation	43,862	48,191	30,354	34,372
Depreciation of MDB stock		1,873		1,873
Provisions for trade receivables	1,738	3,053	1,068	1,580
Provisions for fixed assets	73,173	23,311	64,427	17,897
Provisions for contingencies and expenses ⁽⁴⁾	1,623	2,553	215	729
Subtotal allowances for impairments and provisions	76,533	30,790	65,710	22,079
TOTAL	120,395	78,981	96,064	56,451

⁽³⁾ The item Other operating expenses mainly corresponds to losses on irrecoverable receivables of €3,118 thousand, Directors' remuneration of €581 thousand, and €1,500 thousand in compensation for termination of an agreement.

⁽⁴⁾ Details of provisions for contingencies and expenses are given in Section 4.5.3.4. These allocations concern the URSSAF AGA provisions of €764 thousand, provisions related to the portfolio of €575 thousand and provisions for end-of-career benefits of €284 thousand.

4.5.4.2 Net financial income

(In € thousand)	Note 4.5.4	31/12/2023	31/12/2022	Of which Italian Establishment 2023	Of which Italian Establishment 2022
Financial income from investments		441,205	286,826	50,241	41,293
Dividends received from subsidiaries and equity investments	2.1	441,205	286,826	50,241	41,293
Financial income on guarantees given			0
Loans and similar income		9,718	9,015	193	0
Income from loans to employees		2	2		0
Income from loans to subsidiaries		9,716	9,014	193
Other interest and similar income		119,745	151,984	410	796
Interest on Group current accounts		5,911	3,796	373	137
Income from financial instruments		49,244	14,718
Income from treasury bills		59	3,880
Revenue from term accounts		1,688	2,379
Premiums and cash adjustments received		24,490	9,912
Other income		1,976	638	37	541
Statutory interest		2,731	3,232
Merger premiums	2.2	33,647	113,430		117
Reversals of provisions and transferred expenses	2.3	16,762	60,877	2,134	19,996
Reversals of provisions for financial contingencies and charges
Reversals of provisions for financial contingencies related to securities - current accounts		838	20,820
Reversals of provisions for treasury share contingencies		6,904
Reversals of provisions on financial assets	4.5.3.1.6	2,174	32,306	2,134	19,996
Reversals of provisions for merger deficit on financial assets
Transferred financial expenses		6,846	7,750
Net income from disposal of marketable securities		122	3
Total financial income		587,552	508,706	52,979	62,086
Provisions for financial contingencies and charges		397,059	96,204	31,972	6,577
Provisions for financial contingencies
Provisions for financial contingencies related to securities - current accounts		5,569	3,422
Provision for financial contingencies - treasury shares		9,885	11,465
Provisions on financial assets ⁽¹⁾	4.5.3.1.6	377,501	79,822	31,972	6,577
Provisions for merger deficit on financial assets
Other financial provisions		4,104	1,495
Interest and similar expenses		146,317	107,445	22,843	28,469
Interests on loans and swaps		78,975	60,617	12,023	12,776
Interest on Group current accounts		9,367	3,676	884	436
Bank interest and financing operations		4,588	4,114
Merger deficits	2.2	13,143	625
Premiums and cash adjustments paid			3,713		3,713
Spreading of premiums and cash adjustments	4.5.3.2.3	40,126	34,552
Fair value adjustments to financial instruments		111	111
Reversal of valuation of derivative financial instruments	4.5.3.4
Other financial expenses		6	36	9,936	11,545
Net expenses from disposal of marketable securities		0	24
Net expenses on disposals of treasury shares		8,928	2,897
Total financial expenses		552,304	206,570	54,815	35,047
NET FINANCIAL INCOME		35,248	302,135	-1,836	27,039

⁽¹⁾ Corresponds to write-downs on equity investments for €376,016 thousand (see 4.5.3.1.6 and 4.5.3.1.7) and on treasury shares for €15 thousand (liquidity agreement) and €1,470 thousand on treasury shares pending grants to employees.

4.5.4.2.1 Breakdown of dividends

Dividends received from subsidiaries are shown in the table of subsidiaries and associates 4.5.6.6.

4.5.4.2.2 Breakdown of merger premiums and deficits for the year

(In € thousand)	Accounting treatment
Company	Financial income (merger premium)	Financial expense (merger deficit)	Allocation to the account of the underlying	Allocation to shareholders' equity (merger premium)
Marina Fréjus		3
Factor E		13,140
SCI Pompidou	9,891
Orly Promo	53
SCI Le Ponant	17,454
SCI du 1 rue de Châteaudun	6,198
Silexpromo	52
TOTAL	33,647	13,143	0	0

4.5.4.2.3 Breakdown of reversals of provisions and transfers of financial expenses

(In € thousand)	31/12/2023	Of which Italian Establishment 2023
Reversals of provisions for financial contingencies and charges	9,916	2,134
Reversals of provisions relating to investments:	2,994	2,134
Reversals of provisions on investments	2,157	2,134
Reversal of provisions for contingencies - current accounts	838
Other reversals of provisions of a financial nature	6,921	0
Reversals of provisions for contingencies - treasury shares	6,904
Reversals of provisions on treasury shares	18
Reversals of provisions on investment securities
Reversal of provisions for swap risks
Reversals of provisions for merger deficits on financial assets
Transferred financial expenses	6,846	0
Expenses on allocation of shares to employees	6,846
TOTAL	16,762	2,134

4.5.4.3 Exceptional income

Exceptional income of €13.83 million was mainly impacted by capital gains on the disposal of equity investments of €19.9 million, less €1.20 million for capital losses on securities in Italy and €4.99 million for scrapping and selling costs.

Income (in €k)	31/12/2023	31/12/2022	Of which Italian Establishment 31/12/2023	Of which Italian Establishment 31/12/2022
Exceptional income on management transactions	169	2,257	123	2,252
Miscellaneous income
Non-recurring income on finance leases
Non-recurring income on leasing	169	2,257	123	2,252
Income on capital transactions	117,204	221,461	29,586	91,383
Income on disposal of buildings	88,613	90,946	29,430	90,929
Income on disposals of other fixed assets sold
Income from disposals of intangible fixed assets	756
Income on disposals of treasury shares	27,967	41,562
Income from disposals of securities ⁽¹⁾	-247	88,474	41	355
Miscellaneous non-recurring income	115	478	115	98
Reversals of provisions	125	0	0	0
Provisions for capital cost allowances	125
Finance leases - Reversals of Art. 64 provisions
Reversals of provisions for taxes
Non-recurring income	117,498	223,717	29,709	93,635
EXCEPTIONAL INCOME	13,838	10,954	5,881	-5,184

Expenses (in €k)	31/12/2023	2023 Net	31/12/2022	2022 Net	Of which Italian Establishment 31/12/2023	Of which Italian Establishment 31/12/2022
Exceptional expenses on management transactions	87	82	83	2,174	5	1
Miscellaneous expenses	6	-6	1	-1	5	1
Expenses on finance leases		0
Abandoned transaction		0		0
Non-recurring expenses on operating leases	81	88	81	2,175
Expenses on capital transactions	103,474	13,731	212,580	8,881	23,823	98,818
Book value of buildings sold off	68,755	19,858	93,342	-2,396	22,578	93,342
NBV of other fixed assets sold	4,999	-4,999	8,392	-8,392	1,179	5,193
NBV of intangible fixed assets	759	-3	2	-2
NBV of treasury shares sold	28,894	-927	42,379	-817
Book value of securities disposed ⁽¹⁾	30	-277	68,058	20,416	30	282
Miscellaneous expenses	36	79	406	72	36
Depreciation and provisions	99	25	101	-101	0	0
Capital cost allowances	99	25	101	-101
Finance leases - Art. 64 provisions		0		0
Depreciation and amortisation charges		0		0
Non-recurring expenses	103,660	13,838	212,763	10,954	23,828	98,819

^* Income from disposals and book value of securities disposed of.

(In € thousand)	Disposal price	Net book value	Income from disposal
NOMISMA SPA	24	23	1
Zarabella	17	7	10
République ^*	-288		-288
TOTAL	-247	30	-277

⁽¹⁾ The €288 thousand corresponds to the price adjustment on the sale of shares related to the Car Parks business in 2022.

4.5.4.4 Income tax

Covivio's French establishment is subject to the SIIC regime; for 2023, taxable net income is a profit of €8,523,891.20.

Corporate income tax for 2023 amounted to €946,343.

A sponsorship tax credit for 2023 is offset against corporate income tax for an amount of €96,528, leaving a tax expense for 2023 of €849,815.

The balance of sponsorship credits at 1 January 2023 of €114,021 will be adjusted when the corporate income tax is paid.

The SIIC regime allows the exemption of:

―	income from the leasing of assets;
―	capital gains from the disposal of assets to non-related companies;
―	dividends from subsidiaries are either subject to corporate income tax and opting for the SIIC regime or not subject to corporate income tax.

In return, the company is subject to the following obligations concerning dividends:

―	95% of the taxable income from the leasing of assets must be distributed before the end of the year after the one in which said income was generated;
―	70% of the capital gains from disposals of assets and shares in subsidiaries having opted in must be distributed before the end of the second fiscal year following the one in which they were realised;
―	100% of the dividends from subsidiaries that have opted in must be distributed during the fiscal year after the year they are received.

The total distribution obligation is calculated by applying the appropriate distribution coefficient to each income category, limited to the taxable income from the entire exempt sector.

Following Beni Stabili's merger with Covivio, the tax arrangements for Covivio's permanent establishment in Italy changed after it left the SIIQ tax regime. Since 2019 it has been subject to the 20% tax on real estate companies.

4.5.4.5 Increases and relief of future tax liabilities

As at 31 December 2022, Covivio had a tax loss carryforward of €283,941,775.

For the 2023 fiscal year, the amount of the losses used is €4,761,945.

The tax loss carryforwards now amount to €279,179,830.

4.5.4.6 Non-tax deductible expenses

In accordance with the provisions of Article 223 quater of the French General Tax Code, it should be noted that the financial statements for the past year include a total of €30,856 corresponding to non-tax-deductible expenses (depreciation, amortisation and excess rent on leased vehicles).

During the past fiscal year, Covivio incurred no expenses subject to Articles 223 quinquies and 39-4 of the French General Tax Code. It is recalled that the expenses covered by these articles are sumptuary expenses, such as for hunting, yachting and pleasure craft such as sail boats or motor boats.

Article 223 quater states that companies liable for corporate income tax must show these expenses in their financial statements and submit them every year for the approval by the Ordinary General Meeting.

4.5.5 Off-balance sheet commitment

4.5.5.1 Commitments given

Off-balance sheet commitments given (in € million)	Delivery date	31/12/2023	31/12/2022
Commitments related to operating activities (A+B+C)		78.5	285.4
A- Commitments given related to business development		45.2	254.4
Work commitments outstanding on assets under development		43.2	252.5
Bank guaranties and other guaranties given		2.0	2.0
B- Commitments related to the implementation of operating contracts		1.3	13.9
Other contractual commitments given in "rental income owed"		1.3	13.9
C- Commitments related to asset disposals		32	17.1
Preliminary sale agreements given ⁽¹⁾		30.1	17.1
Rental guarantees on sold assets		1.9	0.0

⁽¹⁾ Preliminary sale agreement.

―	Under its SIIC status, the Group has specific obligations, as set out in Section 4.2.1.6.7.1.
―	Under the free-share plans awarded (see Section 4.2.7.2), Covivio has undertaken to deliver (through acquisition or creation) 596,894 shares to the beneficiaries present at the end of the vesting period.

4.5.5.1.1 Swaps

As a variable-rate borrower, Covivio is subject to the risk of interest rates rising over time. The exposure to this risk is limited through hedging (swaps, caps and floors).

Covivio's loans and debts with credit institutions have been covered by swap agreements.

The table below summarises the major features of these contracts:

Start date	End date	Ref.	Bank	Rate type	Notional (In €k)	Fair value (In €k)
18/02/2016	14/10/2024	Swaps	CM CIC	0.50%	50,000	-1,171
21/06/2017	21/06/2024	Swaps	ING	0.76%	75,000	-1,119
31/12/2018	30/06/2028	Swaps	ING	0.83%	50,000	3,105
15/01/2020	15/01/2027	Swaps	SG	Euribor 3M+1.10%	550,000	-18,653
15/01/2020	15/01/2030	Swaps	SG	0.45%	400,000	48,952
15/01/2020	15/01/2031	Swaps	CACIB	0.84%	75,000	7,009
15/04/2020	15/01/2032	Swaps	LCL	1.04%	70,000	6,431
15/01/2020	15/01/2031	Swaps	SG	1.18%	150,000	10,635
23/06/2020	24/06/2027	Swaps	SG	Euribor 3M+0.0660%	100,000	-8,434
23/06/2020	24/06/2030	Swaps	CACIB	Euribor 3M+0.0685%	250,000	-36,974
15/01/2021	15/01/2032	Swaps	CACIB	Euribor 3M+0.88%	200,000	20,722
17/01/2022	17/01/2033	Swaps	NATIXIS	Euribor 3M+0.875%	130,000	20,705
17/01/2022	15/01/2032	Swaps	ING	Euribor 3M+0.885%	100,000	14,531
17/01/2022	15/01/2032	Swaps	CACIB	Euribor 3M+0.83%	100,000	14,724
17/01/2022	17/01/2033	Swaps	LCL	Euribor 3M+0.838%	100,000	16,088
17/01/2022	17/01/2028	Swaps	SG	0.41%	550,000	-35,636
31/03/2022	15/01/2032	Swaps	NATIXIS	1.11%	75,000	6,502
31/03/2022	15/01/2032	Swaps	CIC	1.16%	100,000	8,293
18/04/2028	15/04/2032	Swaps	CACIB	2.14%	150,000	841
15/10/2024	05/06/2032	Swaps	NATIXIS	2.84%	100,000	4,269
15/10/2024	05/06/2032	Swaps	CACIB	2.83%	200,000	8,463
15/10/2024	15/10/2029	Swaps	SG	2.74%	200,000	5,876
15/01/2030	15/07/2034	Swaps	CIC	2.28%	150,000	1,184

4.5.5.1.2 Caps and floors

Covivio's loans and debts with credit institutions are subject to a cap and floor contract.

The table below summarises the major features of these contracts:

Start date	End date	Ref.	Bank	Rate type	Notional (In €k)	Fair value (In €k)
17/01/2028	15/01/2032	C. SWAPTION	LCL	Euribor 3M	70,000	-3,678
20/01/2021	22/04/2024	A - floor	CACIB	Euribor 3M	100,000	0
15/01/2032	16/01/2034	V - P SWAPTION	CACIB	Euribor 3M	200,000	-1,056
15/04/2032	17/04/2034	V - P SWAPTION	CACIB	Euribor 3M	150,000	-1,880
17/07/2034	15/07/2036	V - P SWAPTION	CIC	Euribor 3M	150,000	-1,972
Italian Establishment
None

4.5.5.2 Commitments received

Off-balance sheet commitments received (in € million)	Delivery date	31/12/2023	31/12/2022
Commitments related to financing		1,465.0	1,225.0
Financial guarantees received (authorised lines of credit not used)		1,465.0	1,225.0
Commitments related to operating activities		474.1	725.1
Other contractual commitments received related to the "Rent to be collected" activity		377.0	455.5
Assets received in pledge, mortgage or collateral, as well as guarantees received		23.8
Preliminary sale agreements received = Preliminary sale agreements given		30.1	17.1
Remaining work to be undertaken (fixed assets)		43.2	252.5

4.5.6 Miscellaneous information

4.5.6.1 Average headcount during the year and at the end of the period

				Total	Total
2023 - Covivio France		2023 - Covivio Italy		2023	2022
Executives	146	Managers	7	153	162
Supervisors	14	Supervisors	22	36	37
Employees		Employees	49	49	52
TOTAL EXCLUDING APPRENTICES	160	TOTAL EXCLUDING APPRENTICES	78	238	251
Apprentices - Professional contracts	21	Apprentices	0	21	15
TOTAL FRANCE	181	TOTAL ITALY	78	259	266

The average headcount for 2023 was 183.08 in France and 79.19 in Italy.

4.5.6.2 Remuneration of administrative and management bodies

4.5.6.2.1 Remuneration of Board members

The members of the Covivio Board received remuneration in the amount of €581,403 in 2023 compared to €707,000 in 2022.

4.5.6.2.2 Remuneration of Executive Management

The members of the General Management and the Chairman of the Covivio Board of Directors received overall remuneration of €2,641 thousand for their roles, excluding the value of free shares.

The members of the General Management do not receive any post-retirement benefits, other than payment of the following compensation.

In the event of forced departure as a result of a change in control or strategy, the following Directors will receive compensation, provided that the performance conditions are met:

―

Christophe Kullmann (Chief Executive Officer): the compensation will be equal to 12 months of total compensation including the fixed salary and the annual variable portion, increased by one month of additional remuneration per year of service capped at 24 months of remuneration, subject to two conditions:

1. the first is linked to the NAV,

2. the second is linked to meeting the performance targets for the annual bonus;

―	Olivier Estève: his amount will be equal to 12 months of total remuneration (fixed salary and the annual variable portion), increased by one month of additional remuneration per year of service capped at 24 months of remuneration, subject to two conditions:

1. the first is linked to the NAV,

2. the second is linked to meeting the performance targets for the annual bonus.

4.5.6.3 Information regarding related-party transactions

All related-party transactions are concluded under normal market conditions or are immaterial.

The term "related-party transactions" as presented here is defined under Article R. 123-199-1 of the French Commercial Code. It includes, in particular, all entities consolidated by Covivio, irrespective of the chosen method of consolidation. It also includes:

―	persons or close family members of persons exercising joint control, significant influence, or who are key executives of Covivio;
―	controlled entities, jointly controlled entities, over which significant influence is exercised, or managed by the persons defined in the previous point.

4.5.6.4 Information on items with related companies 2023

The table below includes all related-party transactions for the financial year ended 31 December 2023, including transactions with wholly owned subsidiaries.

(In € thousand)	Amount
Advances and advanced payments on fixed assets
Investments	5,293,057
Investment-related receivables
Loans	1,415,705
Trade receivables and related accounts	67,272
Other receivables
Other sundry long-term loans and borrowings	3,978
Other sundry short-term loans and borrowings
Advances and advanced payments received on orders in progress	533
Trade payables and related accounts	157,506
Debt on fixed assets and related accounts	0
Other liabilities	0
Income from investments	441,183
Other financial income	28,296
Financial expenses	-19,305

4.5.6.5 Free shares

In 2023, a total of 166,087 free shares were awarded by Covivio.

The following fair-value assumptions were made for the free shares:

	2023
	Corporate officers - with performance conditions ⁽¹⁾	Corporate officers - with performance condition ⁽²⁾	Corporate officers - with performance condition ⁽³⁾	Corporate officers and/or employees without performance condition	Group plans for employees and managers
Date awarded	21 Feb. 23	21 Feb. 23	21 Feb. 23	21 Feb. 23	23 Nov. 23
Number of shares awarded	16,393	10,929	27,321	7,729	103,715
Share price on the date awarded	€62.00	€62.00	€62.00	€62.00	€43.82
Acquisition period	3 years	3 years	3 years	3 years	3 years
Lock-up period
2023 dividend per share	3.75	3.75	3.75	3.75	3.61
2024 dividend per share	3.75	3.75	3.75	3.75	3.54
2025 dividend per share	3.75	3.75	3.75	3.75	3.48
Value of free share	€51.16	€51.16	€51.16	€51.16	€33.70
Value of the benefit	€16.65	€14.44	€32.92	€41.15	€23.76

At 31 December 2023, 596,894 free shares had been granted but were not yet vested.

4.5.6.6 Subsidiaries and equity investments

(Article L. 233-15 of the French Commercial Code).

				Book value of securities held
Companies or groups of companies	Capital	Reserves and retained earnings before allocation of net income		gross	net	Outstanding loans and advances granted by the company and not reimbursed
I. Detailed information
A Subsidiaries (at least 50% of the capital held by the company)
1) Real estate activities
a) Rental
FDR7	3	822	100.00	825	825	1,280
Technical SAS	102,026	-36,424	100.00	358,640	358,640	2,208
SCI Le Ponant 1986 FTA on 31/12/2023
SCI Atlantis	2	9,632	100.00	28,429	28,429	27,464
SCI Iméfa 127	81,788	0	100.00	103,476	103,476
Latécoëre	4,714	-30,911	50.10	30,851	30,851
SCI du 32 avenue P. Grenier	157	6,226	100.00	20,610	20,610	12,100
SCI du 40 rue JJ. Rousseau	24	-3	100.00	12	12	6,400
SCI du 3 place A Chaussy	15	0	100.00	234	234	3,473
SARL BGA Transactions	50	-28,816	100.00	3,210	3,210	4,790
SCI du 9 rue des Cuirassiers	85	-17,665	50.10	5,693	4,961	40,726
SCI du 15 rue des Cuirassiers	159	-6,088	50.10	1,072	1,072
SCI du 10B et 11A 13 allée des Tanneurs	32	1,290	100.00	1,441	1,441	7,682
SCI du 1 rue de Châteaudun FTA on 31/12/2023			100.00
SCI du 125 avenue du Brancolar	25	-292	100.00	7	7	9,965
SARL du 106-110 rue des Troënes	9	-1,282	100.00	9	9	2,638
SCI du 20 avenue Victor Hugo	12	-334	100.00	3	0	2,850
SNC Palmer Plage	4,811	-5,550	100.00	1,917	1,917	26,687
SCI Dual Center	1,352	1,170	100.00	1,500	1,500	2,200
SCI Pompidou FTA on 30/11/2023
Office CB 21	330,447	7,144	75.00	247,695	158,794	4,957
SCI Lenovilla	8	9,994	50.10	34,287	34,287	9,937
SCI Latécoère 2	2	-3,560	50.10	1	0	58,196
SCI Meudon Saulnier	1	-9,699	99.90	1	0	27,270
SCI Charenton	3,201	22,150	100.00	16,001	0	53,147
SCI Avenue de la Marne	50	-4,025	100.00	50	50	88,852
Omega B	26,928	3,496	100.00	38,983	38,983	114,203
SCI Rueil B2	1	5,914	99.90	11	0	77,839
SCI Factor E FTA on 31/07/2023
SNC Wellio	2	566	99.90	20,001	0	7,287
SCI Cité Numérique	1	-1,157	99.90	1	1	33,302
SCI Danton Numérique	1	-11,564	99.90	1	1	127,688
SCI N2 Batignolles	6	8,754	50.00	10,314	7,734	72,269
SAS 6 rue Fructidor	4,795	39,946	50.10	24,787	0	102,397
SCI Terres neuves	1	-187	99.90	1	0	591
SCI de la Louisiane	1	-85	99.90	1	0	4,296
SCI Meudon Juin	1	0	99.90	1	0	29,335
b) Foreign companies
Covivio 7 Spa	520	6,407	100.00	17,654	9,060
Central Sicaf	50,007	602,705	51.00	334,730	310,859
Covivio Immobiliare 9 SpA	120	89,401	100.00	90,554	76,547
SAS Covivio Alexanderplatz	20,418	223,246	55.00	141,214	127,337
Covivio Dev Strading ex Ativita Immobiliri 2	10	11,391	100.00	10,226	10,226	24,242
Zabarella 2023 Srl ex Covivio Ativita Immobiliri 3	14	21,405	64.74	13,876	13,865
Covivio Development Italy SpA SIINQ	50	493,004	100.00	469,476	469,476
Covivio Attivita Immobiliari 4	10	24	100.00	35	24
Covivio Attivita Immobiliari 5	10	20	100.00	30	28
c) Real estate trader
SARL GFR Ravinelle	952	957	99.98	1,734	1,734
d) Property development
Latepromo	1	814	99.90	1	1
SNC Bordeaux lac	1	-1,431	99.90	1	0
SNC Sucy parc	1	-198	99.90	1	0	1,194
SNC Gambetta le Raincy	1	-167	99.90	1	0	1,287
SNC Orly promotion FTA on 30/11/2023
Silexpromo FTA on 31/12/2023
SCI du 21 rue Jean Goujon	1	-2,041	99.90	1	1	177,520
SNC Villouvette Saint Germain	1	409	99.90	1	1
SNC La Marina Fréjus assets transferred 31/03/2023					0
SNC Normandie Niemen Bobigny	1	-231	99.90	1	0	2,252
SNC Meudon Bellevue	1	315	99.90	1	1
SNC Valence Victor Hugo	1	-42	99.90	1	0	1,048
SNC Nantes Talensac	1	-211	99.90	1	0	1,937
SNC Marignane Saint-Pierre	1	-22	99.90	1	0	176
SNC N2 Batrignolles Promo	10	-787	50.00	164	164
SNC Fructipromo	1	10	99.90	1	1
SNC Jean Jacques Bosc	1	-40	99.90	1	0	400
SNC André Lavignolle	1	-61	99.90	1	0	45,615
SCCV Chartres avenue de Sully	2	0	99.90	2	2
SCCV Bobigny Le 9 ^e Art	2	0	60.00	1	0	2,467
SCCV Fontenay-Sous-Bois Rabelais	1	0	50.00	1	1	6,183
SNC Saint Germain Hennemont	1	654	99.90	1	1	90
SNC Antony avenue de Gaulle	1	840	99.90	1	1
SNC Aix en Provence Cézanne	1	-7	99.90	1	0	459
SAS HOTEL N2	369	2,842	100.00	1,851	1,351	1,072
SNC Boulogne Jean Bouveri	1	0	99.90	1	1	5
SNC Anjou Promo	1	0	99.90	1	1
2) Car parks activity
Trinité	1,428	7,276	100.00	10,898	10,898
3) Services activities
SNC Covivio Property	10,311	-5,976	100.00	23,259	2,145
Covivio Développement	200	-2,803	100.00	1,852	0	148
Covivio Hotels Gestion	37	4	100.00	37	37
Foncière Margaux	40	-45	100.00	34	0	19
Covivio 2	12,927	-12,482	100.00	12,927	7,837	26,969
Euromarseille 1	8,501	10,355	50.00	8,587	8,587	2,953
Euromarseille 2	3,501	-1,719	50.00	3,564	3,564	21,143
Covivio SGP	592	2,153	100.00	1,395	1,395
Télimob Paris SARL	552	23,089	100.00	57,670	57,670	1,677
Covivio Participations	1	34	100.00	1	1
FDR PROPTECH	3	-189	100.00	3	3
Covivio Holding Gmbh	25	1,183,319	100.00	1,021,043	1,021,043	135,000
Covivio Office Gmbh	25	674,693	100.00	678,759	498,316	18,200
B. Investment (10% to 50% of equity held by the company)
1) Real estate activities
a) Rental
Cœur d'Orly Promotion	37	-275	50.00	19	18	281
Covivio Hotel SCA	592,566	1,719,279	43.84	1,325,048	1,325,048
Real Estate Solution & Technology	10	163	30.00	3	3
Fondo Porta di Romana	113,760	-2,264	32.01	36,609	36,609
II. General information on holdings
A. Investments not included in paragraph 1
a) French subsidiaries (together)
b) Foreign subsidiaries (together)
B. Investments not included in paragraph 1
a) In French companies
(Oséo/Finantex/MRDIC/FNAIM)				7	7
b) In foreign companies
III. General information on holdings
A. Subsidiaries I + II
a) French subsidiaries (together)	650,165	583,467		1,408,793	1,203,300	1,256,643
b) Foreign subsidiaries (together)	21,202	2,702,910		2,442,866	2,225,920	177,442
B. Investments I + II
a) In French companies	592,603	1,719,004		1,325,074	1,325,073	281
b) In foreign companies	113,770	-2,101		36,612	36,612	0

Companies or groups of companies	Guarantees and sureties given by the company	Revenues net of tax for the most recent year ended	Profit (loss) for the most recent year ended	Dividends received by the company over the year	Observations
I. Detailed information
A Subsidiaries (at least 50% of the capital held by the company)
1) Real estate activities
a) Rental
FDR7		311	242	1,003
Technical SAS		39,085	165,322	154,955
SCI Le Ponant 1986 FTA on 31/12/2023		738	14,571	1,000
SCI Atlantis		259	-2,485	1,500
SCI Iméfa 127		7,566	4,640	5,005
Latécoëre		19,327	6,573
SCI du 32 avenue P. Grenier		1,903	491
SCI du 40 rue JJ. Rousseau		1,141	897	544
SCI du 3 place A Chaussy		1,080	824	713
SARL BGA Transactions		2,707	33,417	33,860
SCI du 9 rue des Cuirassiers		8,666	-4,150
SCI du 15 rue des Cuirassiers		3,512	447
SCI du 10B et 11A 13 allée des Tanneurs		1,685	56	500
SCI du 1 rue de Châteaudun FTA on 31/12/2023		845	7,233	1,024
SCI du 125 avenue du Brancolar		25	-532
SARL du 106-110 rue des Troënes		0	-138
SCI du 20 avenue Victor Hugo		467	-720
SNC Palmer Plage		7,271	18,409
SCI Dual Center		513	487
SCI Pompidou FTA on 30/11/2023		661	9,890	386
Office CB 21		0	8,078	4,957
SCI Lenovilla		15,578	8,442	9,418
SCI Latécoère 2		4,846	-10,405
SCI Meudon Saulnier		12	-10,845
SCI Charenton		6,386	-27551	4,000
SCI Avenue de la Marne		8,755	4,967
Omega B		0	-16,871
SCI Rueil B2		1,142	-25,590
SCI Factor E FTA on 31/07/2023		618	20,532	22,000
SNC Wellio		0	-2,590
SCI Cité Numérique		3,020	424
SCI Danton Numérique		3,557	-2,188
SCI N2 Batignolles		581	-4,442
SAS 6 rue Fructidor		1,400	-49,343
SCI Terres neuves		0	-495
SCI de la Louisiane		0	-3,452
SCI Meudon Juin		0	-13,592
b) Foreign companies
Covivio 7 Spa		0	2,134
Central Sicaf		58,726	19,672	34,618
Covivio Immobiliare 9 SpA		4,744	-2,098	5,530
SAS Covivio Alexanderplatz		0	-4,853
Covivio Dev Strading ex Ativita Immobiliri 2		0	-558
Zabarella 2023 Srl ex Covivio Ativita Immobiliri 3		0	-434
Covivio Development Italy SpA SIINQ		14,623	15,765	9,934
Covivio Attivita Immobiliari 4		0	-10
Covivio Attivita Immobiliari 5		0	-2
c) Real estate trader
SARL GFR Ravinelle		0	59
d) Property development
Latepromo		0	17,097	7,992
SNC Bordeaux lac		0	177
SNC Sucy parc		0	-76
SNC Gambetta le Raincy		0	-478
SNC Orly promotion FTA on 30/11/2023		0	-4
Silexpromo FTA on 31/12/2023		0	45	3,796
SCI du 21 rue Jean Goujon		2,266	-2,145
SNC Villouvette Saint Germain		0	-2
SNC La Marina Fréjus assets transferred 31/03/2023		0	102
SNC Normandie Niemen Bobigny		0	13	999
SNC Meudon Bellevue		0	-50
SNC Valence Victor Hugo		0	-133
SNC Nantes Talensac		0	-121
SNC Marignane Saint-Pierre		0	1,653	534
SNC N2 Batrignolles Promo		0	4,738	4,965
SNC Fructipromo		0	-3
SNC Jean Jacques Bosc		0	331
SNC André Lavignolle		0	321
SCCV Chartres avenue de Sully		0	-3,232
SCCV Bobigny Le 9 ^e Art		0	1,582
SCCV Fontenay-Sous-Bois Rabelais		0	639
SNC Saint Germain Hennemont		0	2,076
SNC Antony avenue de Gaulle		0	-21
SNC Aix en Provence Cézanne		0	-2
SAS HOTEL N2		4,393	-515
SNC Boulogne Jean Bouveri		0	0
SNC Anjou Promo		0	0
2) Car parks activity
Trinité		1,530	-22
3) Services activities
SNC Covivio Property		9,064	-2,190
Covivio Développement		10,270	-267
Covivio Hotels Gestion		2,433	1,111	593
Foncière Margaux		0	-0
Covivio 2		0	1,855
Euromarseille 1		0	435
Euromarseille 2		0	234
Covivio SGP		1,237	243
Télimob Paris SARL		0	-289
Covivio Participations		0	-23
FDR PROPTECH		0	227
Covivio Holding Gmbh		31	73,182	50,000
Covivio Office Gmbh		286	197
B. Investment (10% to 50% of equity held by the company)
1) Real estate activities
a) Rental
Cœur d'Orly Promotion		0	274
Covivio Hotel SCA		43,548	64,530	81,220
Real Estate Solution & Technology		1,095	9
Fondo Porta di Romana		0	2,848
II. General information on holdings
A. Investments not included in paragraph 1
a) French subsidiaries (together)
b) Foreign subsidiaries (together)
B. Investments not included in paragraph 1
a) In French companies
(Oséo/Finantex/MRDIC/FNAIM)
b) In foreign companies
III. General information on holdings
A. Subsidiaries I + II
a) French subsidiaries (together)		233,576	173,649	294,362
b) Foreign subsidiaries (together)	0	19,684	83,323	65,464
B. Investments I + II
a) In French companies		43,548	64,804	81,220
b) In foreign companies	0	1,095	2,857	0

^* Information not available on closing date.

4.5.6.7 Research and development activities

Covivio did not conduct any research and development during the past financial year.

4.5.6.8 Post-closing events

No post-closing events.

4.5.6.9 Company earnings over the last five years

(in €)	31/12/2019	31/12/2020	31/12/2021	31/12/2022	31/12/2023
I - Capital at year-end
a. Share capital	261,659,718	283,632,696	283,946,073	284,358,288	303,019,167
b. Number of ordinary shares outstanding	87,219,906	94,544,232	94,648,691	94,786,096	101,006,389
c. Number of priority dividend shares (without voting rights)	-	-
d. Maximum number of future shares to be created	0	0
d1. By conversion of bonds	0	0
d2. By exercising subscription rights	454,604	493,337	593,884	560,932	596,894
II - Operations and results for the year
a. Revenue excluding taxes	192,704,669	162,448,070	148,056,160	138,141,441	154,382,455
b. Income before tax, employee profit sharing, depreciation, amortisation and provisions	549,701,041	432,491,376	430,333,009	394,331,981	415,178,197
c. Income taxes	2,405,898	-43,444	10,769,841	245,042	3,887,580
d. Employee profit-sharing due for the financial year	308,864	0	0	0	0
e. Income after tax, employee profit-sharing, depreciation, amortisation and provisions	293,940,535	318,811,426	287,595,138	282,953,806	-8,417,362
f. Distributed earnings	418,655,549	340,359,235	354,932,591	355,447,860	333,321,084
III - Earnings per share
a. Income after tax and employee profit sharing, but before depreciation, amortisation and provisions	6.27	4.57	4.43	4.16	4.07
b. Income after tax, employee profit-sharing, depreciation, amortisation and provisions	3.37	3.37	3.04	2.99	-0.08
c. Dividend allocated to each share	4.80	3.60	3.75	3.75	3.30
IV - Personnel
a. Average headcount over the financial year	157	252	253	264	262
b. Total payroll for the financial year	21,528,733	23,513,951	26,386,666	32,455,632	31,087,501
c. Amount paid in employee benefits for the financial year (social security, benefits, etc.)	10,056,013	10,053,554	9,669,575	10,573,640	10,116,003

4.6 Statutory Auditors' report on the annual financial statements

Fiscal year ending 31 December 2023

To the General Meeting of Covivio,

Opinion

In compliance with the engagement conferred on us by your General Meetings, we have performed an audit of the accompanying annual financial statements of Covivio for the fiscal year ended 31 December 2023.

In our opinion, the accompanying annual financial statements give a true and fair view of the assets and liabilities and of the financial position of the company, and of the results of its operations for the year then ended, in accordance with French accounting standards.

The audit opinion thus formulated is consistent with the content of our report to the company's Audit Committee.

Basis for the audit opinion

Audit framework

We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Our responsibilities by virtue of those professional standards are further described in the "Statutory Auditors' Responsibilities for the Audit of the Financial Statements" section of our report.

Independence

We conducted our audit engagement in compliance with independence requirements of rules required by the French Commercial Code and the French Code of Ethics (Code de déontologie) for Statutory Auditors for the period from 1 January 2023 to the date of our report, and specifically we did not provide any prohibited non-audit services referred to in Article 5, paragraph 1 of Regulation (EU) 537/2014.

Justification of our assessments - Key audit matters

In accordance with the requirements of Articles L. 821-53 and R. 821-180 of the French Commercial Code relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional judgement, were of most significance in our audit of the annual financial statements of the current period, as well as how we addressed those risks.

These assessments were made in the context of the audit of the annual financial statements taken as a whole and the formation of our opinion expressed above. We do not express an opinion on the elements of these annual financial statements taken in isolation.

Valuation of equity investments, related receivables and provisions for any associated risks

Risk identified	Our response
At 31 December 2023, the company's equity investments were included in its balance sheet at a carrying amount of €6,228 million or 73% of the company's total assets. As stated in note 4.5.2.3, "Non-current financial assets", they are measured at cost or, if applicable, at the contribution value less any impairment allowance required to reduce them to their value in use.	We obtained an understanding of the process of determination of the value in use of equity investments.
In the case of investments held for the long term, value in use is assessed on the basis of the net assets plus any unrecognised capital gains on the non-current assets. For the listed subsidiary, the published EPRA NDV is used.	Our procedures involved:
At the end of the fiscal year, the acquisition cost of the securities is compared to their net asset value. The lower of these values is recorded in the balance sheet. The net asset value of the securities corresponds to their value in use for the company.	• obtaining an understanding of the applicable valuation methods and of the underlying assumptions for the determination of value in use;
As stated in note 4.5.2.6 to the financial statements, "Provisions for risks and charges", provisions may also be recognised in the amount of any negative revalued equity associated with subsidiaries for which any associated assets have already been treated as impaired.	• assessing, on a test basis, the information used to estimate the value in use, in particular that:
Given the weight of the company's equity investments and related receivables, and the sensitivity of their valuation to the applicable assumptions, in particular as regards the estimation of the applicable unrecognised capital gains, we considered their valuation and that of any applicable provisions as a key audit matter.	• the amount of shareholders' equity used is consistent with the financial statements of the entities valued and audited, or with analytical procedures, if applicable,
	• any adjustments made to shareholders' equity to calculate net asset value, mainly relating to unrealised capital gains on property assets, are estimated based on appraisal values. Our audit approach to appraisal values of real estate assets is described in the key audit point "Valuation of real estate assets";
	• analysing the loss in value used for impairment of equity investments and related receivables by reconciling the remeasured net assets with the net book value;
	• assessing the recoverability of related receivables in light of the analyses performed on equity investments;
	• examining the need to recognise a provision for risks to cover the remeasured net financial position of subsidiaries if negative and where all assets reported for these subsidiaries have been impaired;
	• assessing the appropriateness of the information provided in the notes to the financial statements.

Valuation of real estate assets

Risk identified	Our response
As of 31 December 2023, real estate assets accounted for €1,408 million of a total balance sheet of €8,535 million. They mainly consist of buildings owned by the company.	We obtained an understanding of the company's process of valuation of your company's real estate assets.
They are recognised at acquisition cost or contribution value and are amortised on a straight-line basis. As indicated in note 4.5.2.2 "Property, plant and equipment" to the annual financial statements, at each closing date, the company tests assets for indications that they have suffered a significant loss in value, in which case, an impairment for loss of value may be recognised in the income statement. These impairment losses are determined by comparing the market value (excluding duties), calculated on the basis of independent appraisals, and the net book value of the properties.	Our procedures involved:
Property valuation is a complex matter requiring the exercise of significant judgement by the company's property valuers based on the data communicated by the company.	• assessing the competence and independence of the company's property valuers on the basis of the requirements for rotation and bases of remuneration defined by your company;
In addition, the economic context, marked by inflation and the increase in borrowing rates, creates uncertainty about the estimates used by independent appraisers for appraisal values. These estimates are based on assumptions about discount rates, yield rates and rental data that depend on market trends and which could be different in the future.	• obtaining an understanding of the company's written instructions to its property appraisers describing the nature of the services required and the scope and limitations of their work with particular regard to the verification of the information provided by your company;
We considered the valuation of real estate assets to be a key audit matter due to the material nature of its impacts on the annual financial statements and the significant degree of judgement involved in determining the main assumptions used in the valuation of these real estate assets.	• assessing, on a test basis, the relevance of the information provided by the company's Finance Department to the property valuers for the purpose of determining the fair value of the company's property assets, including rent schedules, other accounting data and capital expenditure budgets;
	• analysing the assumptions applied by the property appraisers, such as applicable discount rates, yield rates, rental data and market rental values, by comparing them in the context of the Ukraine war and inflation with the available market data;
	• interviewing certain professional property valuers in the presence of the company's Finance Department and assessing, by the inclusion of valuation specialists, the consistency and relevance of the valuation approach applied and of the main associated instances of the exercise of professional judgement;
	• checking, on a sample basis, that an impairment loss is recognised when the appraisal value excluding transfer taxes is lower than the net book value;
	• recalculating, on a sample basis, the impairment allowances recognised in your company's annual financial statements;
	• assessing the appropriateness of the information provided in note 4.5.2.2 to the annual financial statements.

Specific verifications

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by French laws and regulations.

Information given in the management report and in the other documents with respect to the financial position and the financial statements provided to shareholders

We have no matters to report as to the fair presentation and consistency with the annual financial statements of the information given in the management report of the Board of Directors and in the other documents relating to financial position and the annual financial statements for shareholders.

We report to you that the information relating to payment times referred to in Article D. 441-6 of the French Commercial Code is fairly presented and consistent with the annual financial statements.

Information relating to corporate governance

We attest that the Board of Directors' report on corporate governance sets out the information required by Articles L. 225-37-4, L. 22-10-10 and L. 22-10-9 of the French Commercial Code.

Concerning the information given in accordance with the requirements of Article L. 22-10-9 of the French Commercial Code relating to remunerations and benefits received or allocated by the corporate officers and any other commitments made in their favour, we have verified its consistency with the financial statements or with the underlying information used to prepare these financial statements and, where applicable, with the information obtained by your company from controlled companies that are included in the scope of consolidation. Based on this work, we attest the accuracy and fair presentation of this information.

With respect to the information relating to items that your company considered likely to have an impact in the event of a takeover or exchange offer, provided pursuant to Article L. 22-10-11 of the French Commercial Code, we have verified their compliance with the source documents communicated to us. Based on our work, we have no observation to make on this information.

Other information

In accordance with French law, we have verified that the required information concerning the purchase of investments and controlling interests and the identity of the shareholders and holders of the voting rights has been properly disclosed in the management report.

Report on other legal and regulatory requirements

Format of presentation of the financial statements intended to be included in the annual financial report

In accordance with professional standards on the Statutory Auditors' work relating to the annual and consolidated financial statements presented in the European single electronic reporting format, we have also verified compliance with this format as defined by European delegated Regulation no 2019/815 of 17 December 2018 in the presentation of the annual financial statements intended to be included in the annual financial report mentioned in section I of Article L. 451-1-2 of the French Monetary and Financial Code, prepared under the responsibility of the Chief Executive Officer.

On the basis of our work, we conclude that the presentation of the annual financial statements intended to be included in the annual financial report complies, in all material respects, with the European single electronic format.

It is not our responsibility to verify that the annual financial statements that will be included by your company in the annual financial report filed with the AMF correspond to those on which we carried out our work.

Appointments of the Statutory Auditors

We were appointed as Statutory Auditors of Covivio by the General Meeting held on 22 May 2000 in the case of MAZARS, and 24 April 2013 in the case of ERNST & YOUNG et Autres.

As at 31 December 2023, MAZARS and ERNST & YOUNG et Autres were in the twenty-fourth year and eleventh year, respectively, of total uninterrupted engagement.

Previously, Groupe PIA that became Conseil Audit & Synthèse (acquired by ERNST & YOUNG Audit in 2010) was the Statutory Auditor from 2007 to 2012.

Responsibilities of management and those charged with governance for the annual financial statements

Management is responsible for the preparation and fair presentation of the annual financial statements in accordance with French accounting principles and for such internal control as management determines is necessary to enable the preparation of annual financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to liquidate the company or to cease operations.

The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risk management systems and, where applicable, its internal audit, regarding the accounting and financial reporting procedures.

The annual financial statements were approved by the Board of Directors.

Statutory Auditors' responsibilities for the audit of the consolidated financial statements

Audit purpose and audit approach

Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

As specified in Article L. 821-55-55 of the French Commercial Code, our statutory audit does not include assurance on the viability of the company or the quality of management of the affairs of the company.

As part of an audit conducted in accordance with professional standards in France, the Statutory Auditor exercises professional judgement throughout the audit. Further, the Statutory Auditor:

―	identifies and assesses the risks of material misstatement of the annual financial statements, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
―	obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control;
―	evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management in the financial statements;
―	assesses the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report. However, future events or conditions may cause the company to cease to continue as a going concern. If the Statutory Auditor concludes that a material uncertainty exists, they must draw attention in the audit report to the related disclosures in the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein or refuse to certify the financial statements;
―	evaluates the overall presentation of the financial statements and assesses whether these statements represent the underlying transactions and events in a manner that achieves fair presentation.

Report to the Audit Committee

We submit a report to the Audit Committee which includes in particular a description of the scope of the audit and the audit programme implemented as well as the results of our audit. We also report, if any, significant deficiencies in internal control regarding the accounting and financial reporting procedures that we have identified.

Our report to the Audit Committee includes the risks of material misstatement that, in our professional judgement, were of most significance in the audit of the annual financial statements of the current period and which are therefore the key audit matters that we are required to describe in this report.

We also provide the Audit Committee with the declaration provided for in Article 6 of Regulation (EU) no 537/2014, confirming our independence within the meaning of the rules applicable in France, such as they are set in particular by Articles L. 821-27 to L. 821-34 of the French Commercial Code and in the French Code of Ethics (Code de déontologie) for Statutory Auditors. Where appropriate, we discuss with the Audit Committee the risks that may reasonably be thought to bear on our independence, and the related safeguards.

Paris-La Défense, 18 March 2024

The Statutory Auditors
MAZARS

Claire Gueydan-O'Quin

ERNST & YOUNG et Autres

Anne Herbein

4.7 Extract from the profit and loss account and balance sheet for the fiscal year ended 31 December 2023

4.7.1 Balance sheet at 31 December 2023

4.7.1.1 Assets

(in €)	31/12/2023	31/12/2022
A) Receivables from shareholders for payments still due	-	-
Receivables from shareholders for payments still due a)	-	-
B) Fixed assets
Intangible fixed assets
4) Concessions, licences, trademarks and similar rights	4,648,323	1,835,082
Total I	4,648,323	1,835,082
II Tangible fixed assets
1) land and buildings
• investment properties	1,070,126,651	1,210,021,629
• properties under development	81,761,104	71,159,573
• operating properties	9,888,222	12,656,112
4) other assets	761,970	799,787
5) fixed assets in progress and advance payments
• work in progress on investment and development properties	17,555,201	8,098,663
• advance payments	3,560,000	-
Total II	1,183,653,148	1,302,735,764
III Financial fixed assets
1) equity investments in:
a) subsidiaries	919,611,405	903,017,078
b) associated companies	50,477,419	34,920,198
d-bis) other companies	4,078,252	4,562,922
Total 1)	974,167,076	942,500,198
2) receivables
a) from subsidiaries	13,997,703	-
Total 2)	13,997,703	-
4) derivative financial instruments - assets	-	-
Total 4)	-	-
Total III	988,164,779	942,500,198
TOTAL FIXED ASSETS B)	2,176,466,250	2,247,071,044
C) Current assets
I Inventories:
6) land and buildings
• properties purchased for resale	-	13,800,000
• properties for leasing under disposal	29,935,510	6,260,000
Total I	29,935,510	20,060,000
II Receivables:
1) from customers:
• due within 12 months	1,372,669	11,107,991
• due beyond 12 months	14,598,721	15,537,917
Total 1)	15,971,390	26,645,908
2) from subsidiaries:
• due within 12 months	2,337,454	1,461,833
• due beyond 12 months	-	-
Total 2)	2,337,454	1,461,833
3) from associated companies:
• due within 12 months	-	-
• due beyond 12 months	-	-
Total 3)	-	-
5-bis) tax receivables:
• due within 12 months	1,361,609	5,378,632
• due beyond 12 months	116,659	116,659
Total 5-bis)	1,478,268	5,495,291
5-ter) deferred tax income:
• due within 12 months	-	-
• due beyond 12 months	42,844,227	32,943,380
TOTAL 5-TER)	42,844,227	32,943,380
5-quater) from other third parties:
• due within 12 months	402,172	5,525,905
• due beyond 12 months	18,000	69,346
Total 5-quater)	420,172	5,595,251
Total II	63,051,511	72,141,663
III Financial assets excluding fixed assets
1) investments in subsidiaries	-	-
7) financial assets from subsidiaries for centralised treasury management	10,436,933	5,815,513
Total III	10,436,933	5,815,513
IV Cash:
1) 1) bank and postal deposits	1,458,621	983,490
Total IV	1,458,621	983,490
TOTAL CURRENT ASSETS C)	104,882,575	99,000,666
D) Accruals and deferrals	1,298,541	1,322,285
TOTAL ACCRUALS AND DEFERRALS D)	1,298,541	1,322,285
TOTAL ASSETS (A+B+C+D)	2,282,647,366	2,347,393,995

4.7.1.2 Liabilities

(in €)	31/12/2023	31/12/2022
A) Endowment fund (shareholders' equity)
III Revaluation reserves	1,118,719,081	1,118,719,081
VI Other reserves	534,646,908	572,516,166
VII Cash flow hedge reserve	-	-
IX Profit (loss) for the fiscal year	-59,348,111	114,177
TOTAL ENDOWMENT FUND A)	1,594,017,878	1,691,349,424
B) Provisions for contingencies and expenses
2) for taxes, including deferred taxes
a) taxes	2,900	2,900
b) deferred tax	14,220,573	10,969,981
Total 2)	14,223,473	10,972,881
3) derivative financial instruments - liabilities	-	-
Total 3)	-	-
4) others	1,423,721	2,473,279
Total 4)	1,423,721	2,473,279
TOTAL PROVISIONS FOR RISKS AND CHARGES B)	15,647,194	13,446,160
C) Employee severance indemnity	129,036	130,355
D) Payables
1) bonds:
• due within 12 months	299,538,715	-
• due beyond 12 months	298,296,583	596,893,409
Total 1)	597,835,298	596,893,409
2) convertible bonds:
• due within 12 months	-	-
• due beyond 12 months	-	-
Total 2)	-	-
4) bank payables:
• due within 12 months	-	-
• due beyond 12 months	-	-
Total 4)	-	-
6) advance payments
• due within 12 months	565,000	250,000
• due beyond 12 months	-	-
Total 6)	565,000	250,000
7) Trade payables:
• due within 12 months	13,360,881	13,361,404
• due beyond 12 months	-	-
Total 7)	13,360,881	13,361,404
9) payables to subsidiaries:
• due within 12 months	40,582,887	10,194,664
• due beyond 12 months	-	-
Total 9)	40,582,887	10,194,664
12) tax payables:
• due within 12 months	4,232,678	2,881,220
• due beyond 12 months	-	-
Total 12)	4,232,678	2,881,220
13) payables to pension and social security institutions:
• due within 12 months	245,841	236,188
• due beyond 12 months	-	-
Total 13)	245,841	236,188
14) other payables:
• due within 12 months	5,059,375	3,721,905
• due beyond 12 months	3,444,090	6,343,545
Total 14)	8,503,465	10,065,450
TOTAL PAYABLES D)	665,326,050	633,882,335
E) Accruals and deferrals	7,527,208	8,585,721
TOTAL ACCRUALS AND DEFERRALS E)	7,527,208	8,585,721
TOTAL EQUITY & LIABILITIES (A+B+C+D+E)	2,282,647,366	2,347,393,995

4.7.2 Profit and loss account for the fiscal year ended 31 December 2023

(in €)	31/12/2023	31/12/2022
A) Value of production
1) revenue from sales and services:
a) rental income	59,480,988	61,867,124
b) service revenue	2,707,566	2,830,612
c) revenue from sale of properties purchased for resale	14,000,000	1,000
Total 1)	76,188,554	64,698,736
5) other revenue and income
a) capital gains on sale of other fixed assets	2,888,646	72,765
b) write-backs of property values	2,863,905	1,457,681
c) contingent and non-existent assets	2,833,069	3,350,349
d) non-financial income and revenues from non-core business	5,875,782	7,773,895
Total 5)	14,461,402	12,654,690
TOTAL VALUE OF PRODUCTION A)	90,649,956	77,353,426
B) Costs of production
6) for raw and auxiliary materials, consumables and goods for sale	-32,438	-
7) for services	-18,817,848	-22,481,941
8) for use of third-party assets	-630,908	-720,154
9) personnel expense:
a) salaries and wages	-5,146,901	-7,273,541
b) social security contributions	-1,454,339	-1,542,314
c) employee severance indemnity	-384,121	-401,644
e) other costs	-55,425	-38,400
Total 9)	-7,040,786	-9,255,899
10) amortisation, depreciation and impairment
a) amortisation of intangible fixed assets	-251,417	-1,433
b) depreciation of tangible fixed assets	-29,828,226	-34,154,707
c) other write-downs of fixed assets	-69,006,336	-27,965,957
d) write-downs of receivables included in current assets and cash and cash equivalents	-1,625,667	-2,020,751
Total 10)	-100,711,646	-64,142,848
11) changes in inventories of raw and auxiliary materials, consumables and goods for sale
a) change in inventories due to sales	-13,832,438	-1,872,965
b) change in inventories due to incentives	32,438	168,965
Total 11)	-13,800,000	-1,704,000
12) provisions for risks	-215,000	-725,802
14) other operating expenses	-9,454,802	-17,953,692
TOTAL COSTS OF PRODUCTION B)	-150,703,428	-116,984,336
DIFFERENCE BETWEEN VALUE AND COSTS OF PRODUCTION (A+B)	-60,053,472	-39,630,910
C) Financial income and expenses
15) income from equity investments:
a) in subsidiaries and associated companies	50,095,310	121,034,594
b) in companies controlled by other parent companies	899	10,951
c) in other companies	156,420	156,420
Total 15)	50,252,629	121,201,965
16) other financial income:
d) income other than the above:
• from subsidiaries	566,583	137,472
• from other sources	36,848	541,519
Total 16)	603,431	678,991
17) Interest and other financial expenses:
• due to parent companies	-9,935,000	-11,515,000
• due to subsidiaries	-884,180	-475,355
• due to banks for mortgage loans	-	-
• other	-12,965,827	-13,740,782
Total 17)	-23,785,007	-25,731,137
17-bis) gain (loss) on exchange rates	206	-
TOTAL FINANCIAL INCOME AND EXPENSES (15+16+17+17 BIS) C)	27,071,259	96,149,819
D) Adjustments to financial assets
18) revaluations:
a) of equity investments	2,134,012	24,561
b) of financial fixed assets other than equity investments	-	-
d) of derivative financial instruments	-	529,560
Total 18)	2,134,012	554,121
19) write-downs:
a) of equity investments	-32,227,392	-44,217,064
b) of financial fixed assets other than equity investments	-	-
c) of securities classified as current assets other than equity investments	-	-
d) of derivative financial instruments	-	-
Total 19)	-32,227,392	-44,217,064
TOTAL VALUE ADJUSTMENTS ON FINANCIAL ASSETS (18+19) D)	-30,093,380	-43,662,943
PROFIT (LOSS) BEFORE TAX (A + B +/-C +/-D)	-63,075,593	12,855,966
20) income tax for the fiscal year:
a) current taxes	-3,823,899	1,538,597
b) deferred tax	-3,183,748	2,625,845
c) prepaid taxes	9,834,003	-17,190,769
d) income from tax consolidation	901,126	284,538
Total 20)	3,727,482	-12,741,789
21) Profit (loss) for the fiscal year	-59,348,111	114,177

4.7.3 Extract from the note to the financial statements

4.7.3.1 Significant events for the fiscal year

4.7.3.1.1 Real estate leasing activities

The portfolio at the end of December 2023 includes assets held for leasing with a market value of €1,315,670 thousand (book value €1,199,378 thousand) for approximately 248,000 m ² of surface area. Excluding assets currently undergoing redevelopment, the occupancy rate is 97.9% and the standard annual lease payments amount to €63,338 thousand.

With reference to the marketing activity carried out in 2023 on the properties in the portfolio at the end of the fiscal year, 11 new leases were signed for 4,392 m ² of surface area and corresponding to €1,559 thousand of new standard annual lease revenue. Of these agreements, two were to come into effect after 31 December 2023, representing approximately 759 m ² of surface area and €280 thousand of annual lease payments.

In addition to the above, two leases were signed on a building under redevelopment, for an area of approximately 4,560 m ² , which should generate €667 thousand in new annual rental income.

In addition to the new leases, three leases covering an area of 1,911 m ² and generating €570 thousand of standard lease income were renewed.

In addition, in 2023, two new leases signed in previous years were activated, covering an area of 784 m ² , which will generate €323 thousand of standard annual lease payments.

4.7.3.1.2 Real estate purchases, sales and redevelopment of real estate properties

No real estate assets were purchased in 2023 (except for a share in the property purchased by a subsidiary for €80 thousand) and sales are summarised below:

―	No. 1 real estate properties classified as "Land and buildings -capital assets"; sales agreed at a total price of €23,130 thousand for a book value of the properties (at the date of the sale) of €20,281 thousand;
―	No. 2 real estate assets already reclassified under current asset item "Land and buildings - lease properties held for sale"; the sales were concluded for a total price of €6,300 thousand, bearing in mind that the book value of the real estate properties (at the date of the sale) was €6,260 thousand and brokerage fees of €40 thousand;
―	No. 1 real estate properties classified under current assets "Land and buildings - Buildings acquired for resale". The sale, to the beneficiary company Zabarella 2023 SRL was for €14,000 thousand, against a book value of the property sold (on the date of the sale) of €13,832 thousand.

As of 31 December 2023, two preliminary sales agreements were signed on two buildings with a combined book value of €29,936 thousand. The sales will take place at a price of €30,700 thousand, with finders' fees and other selling costs of approximately €764 thousand.

Covivio Permanent Establishment in Italy has a project in progress for the full-scale redevelopment of a real estate asset in Milan used as offices, therefore classified in the balance sheet under the heading "Land and buildings - assets under development", with a book value of €81,761 thousand at 31 December 2023. Investment in this redevelopment in 2023 alone was €10,601 thousand.

Lastly, it should be noted that development and minor redevelopment expenses incurred in 2023 on the other assets in the portfolio, classified under "Land and buildings - investment properties", amounted to €16,900 thousand.

4.7.3.1.3 Equity investments

At 31 December 2023, Covivio Permanent Establishment in Italy held investments of €974,167 thousand (€942,500 thousand at 31 December 2022), of which €556,897 thousand in SIINQ (unlisted real estate investment companies) and €343,377 thousand in a property investment fund (SICAF).

No equity investments were purchased in 2023, while sales of equity securities were made for a book value of €31 thousand and a sale price of €41 thousand.

These include the sale of 50% of the vehicle Zabarella 2023 SRL (formerly Covivio Attività Immobiliari 3 SRL) to one of the most important Italian companies in construction and restoration, aiming to create a joint venture for the redevelopment and the residential conversion of a prestigious property in the centre of Padua, intended for resale (and sold during the year by Covivio to Zabarella 2023 SRL).

Also, during the 2023 fiscal year, contributions were made to already-owned companies for a total amount of €61,790 thousand, including:

i) €46,200 thousand to a subsidiary of SIINQ, to support the financial needs for the implementation of major real estate development projects in Milan, intended for the construction of office buildings, mainly intended for leasing activities;

ii) €1,692 thousand to the investment vehicle to complete the acquisition, via a subsidiary, of a significant part of the land of the former Scalo di Porta Romana in Milan, which will be used to develop office buildings;

iii) €13,858 thousand to the vehicle intended for the redevelopment of the property for residential use and to be allocated to the aforementioned sale.

In addition, in 2023, €50,085 thousand were received as distributions from subsidiaries, all in respect of the real estate SIIQ/SICAF. These distributions, drawn partly from retained earnings and partly from capital reserves regardless of the nature of the distributed reserve (in accordance with the provisions of OIC 21, 58) were recognised in the income statement as "dividend income".

Due to these capital reserve distributions, at the end of the year, it was deemed appropriate to record certain write-downs of the equity investments concerned. In particular, write-downs of equity investments in the 2023 income statement totalled €32,227 thousand, compared with a write-back of €2,134 thousand.

4.7.3.1.4 Financial assets

There were no significant events in the financial business line directly managed by Covivio Permanent Establishment in Italy.

4.7.3.1.5 General economic environment and impact for Covivio SA - Permanent Establishment in Italy

In accordance with what has already been noted in the financial statements of previous years, also for 2023, the macroeconomic effects resulting firstly from the Covid-19 pandemic, then also from the ongoing wars in the international context, in terms of returns rental properties, had limited effects for Covivio and did not require the need to support tenants by granting them significant discounts.

However, changes in the general macroeconomic environment, including in relation to the conflict in Ukraine, and in particular the rise in interest rates, have significantly affected the market value of the real estate portfolio, although it remains largely higher than its total book value (net write-downs recorded on certain buildings in 2023 amounted to €66,143 thousand).

Based on estimates at the end of the 2023 fiscal year, the market value of the properties in the portfolio recorded an FL (like-for-like) decrease of 4.60% on an annual basis. This negative change is mainly attributable to the significant increase in the exit cap rate used in the valuation models, resulting from the general increase in interest rates, the effect of which was only partially offset by the expected increase in rental income due to inflation indexing.

4.7.3.2 Information on the special regime under Article 1, paragraph 141-bis, of law 296 of 2006

Covivio SA (hereinafter referred to as "Covivio") is a French real estate company listed on the Paris stock exchange (Euronext) and the Milan screen-based stock market (MTA) and qualifies, in France, for the special regime applicable to Société's d'investissement immobilier cotées (the "SIIC Regime"), which, in terms of statutory and tax requirements, is similar to Italy's special regime for listed real estate investment companies known as "SIIQ" in Italy (the "SIIQ Regime"), governed by paragraph 119 et seq. of Article 1, law no 296 of 27 December 2006, as supplemented by Ministerial Decree no 174 of 7 September 2007.

By a cross-border merger deed of 22 November 2018 (notarial deed drawn up by Mr Mario Notari of Milan, repertory no 24161, Report no 14398), Covivio absorbed - with legal effect at 11:59 p.m. on 31 December 2018 - its own subsidiary Beni Stabili SPA SIIQ ("Beni Stabili"), a listed property management company taxed in Italy and subject to the aforementioned SIIQ regime (hereinafter, the "Merger").

As a result of the Merger, Beni Stabili ceased to exist as a separate legal entity and Covivio established a secondary establishment in Italy which, from a tax point of view, qualifies as a permanent establishment of Covivio in Italy (hereinafter also referred to as the "Permanent Establishment"), to which all the assets previously owned by Beni Stabili were transferred.

The Permanent Establishment opted for the special tax regime provided for in Article 1 (141-bis) of law no 296/2006 (special regime envisaged by the SIIQ regulation for branches), with effect from the 2019 tax period, continuing without interruption the SIIQ tax regime already applied to Beni Stabili.

This means that the Permanent Establishment continues to determine two separate fiscal year results for tax purposes, continuing with the SIIQ Regime applied by Beni Stabili (up until the 2018 tax period).

More specifically, the SIIQ Regime for Permanent Establishments provides for the application of a substitute tax of 20% (instead of IRES and IRAP) on income derived from real estate activities (known as "tax-exempt transactions"). Conversely, income from activities other than real estate or which do not fall within the scope of SIIQ (known as "taxable transactions") are subject to ordinary taxation.

4.7.3.2.1 Compliance with the requirements for the prevalence of real estate leasing for the purposes of remaining in the special regime

As stipulated in Article 1, 121 of law no 296/2006, the main activity carried out by SIIQs must be leasing of real estate properties. The same applies for branches that apply the special regime pursuant to Article 1 (141-bis) of said law no 296/2006.

Real estate leasing is considered to be the main activity carried out if the properties held by title or another real right and intended for leasing, the investments in SIIQ/SIINQs and in eligible real estate funds (or SICAFs) represent at least 80% of the assets (asset parameter) and if, in each fiscal year, revenue therefrom represents at least 80% of the positive items on the profit and loss account (economic parameter).

Failure to comply with one of the two parameters indicated above for three consecutive fiscal years will lead to the termination of the special regime as of the second of the three fiscal years. Failure to comply with both parameters in the same fiscal year, on the other hand, will lead to the termination of the special regime as of the fiscal year in relation to which the condition of forfeiture is fulfilled.

Below are the results of the calculation of the aforesaid parameters, which were both complied with in 2023, based on the data from the profit and loss account and balance sheet (hereinafter also the "Financial Statements") as at 31 December 2023 of the Permanent Establishment of Covivio SA in Italy (pursuant to Article 152 (1) of the Italian Tax Code).

Asset parameter

(In € thousand)	31/12/2023
Properties held for leasing (A)	1,199,378
Investments in SIIQ/SIINQ, SICAF and eligible real estate funds (B)	900,274
TOTAL NUMERATOR (C)=(A)+(B)	2,099,652
TOTAL ASSETS (D)	2,282,647
Items excluded from the ratio denominator:
Book value of headquarters	-9,888
Cash and cash equivalents	-1,459
Loans to Group companies (including tax consolidation asset)	-25,274
Trade receivables (receivables from customers, Group companies and other receivables of a commercial nature)	-21,374
Assets for hedging derivatives	-
Deferred tax assets	-42,844
Tax receivables (including VAT)	-1,478
Prepaid expenses	-1,299
Total adjustments (E)	-103,616
TOTAL DENOMINATOR: "ADJUSTED" ASSETS (F) = (D)+(E)	2,179,031
ASSET PARAMETER (C)/(F)	96.36%

The asset parameter, as shown in the table above, is given by the ratio between:

―	the numerator, amounting to a total of €2,099,652 thousand, which includes the book value:
―	(1) of properties held for leasing, which amount to €1,199,378 thousand. This amount corresponds to the value of the real estate assets classified in the financial statements: (i) as tangible fixed assets under "Land and buildings" sub-items "Investment property" (€1,070,127 thousand) and "Properties under development" (€81,761 thousand) and "Fixed assets in progress" relating to properties held for leasing (€17,555 thousand); (ii) in current assets, under "Inventories" (sub-item "Properties held for leasing under disposal" for €29,935 thousand);
―	(2) Investments in real estate SICAFs qualified for the purposes of the Special Regime (51% stake in Central SICAF SPA for a total of €343,377 thousand), in SIINQ (100% stake in Covivio Immobiliare 9 SPA) SIINQ for €87,422 thousand and 100% in Covivio Development Italy SPA SIINQ for €469,475 thousand); and
―	the denominator, in the amount of €2,179,031 thousand, which includes the total of the portfolio assets at 31 December 2023 (€2,282,647 thousand), adjusted to exclude, in application of the criteria in Ministerial Decree 174/2007 (6): i) the value of the real estate properties intended for the head office of the Permanent establishment (classified as "Tangible fixed assets - capital goods", amounting to €9,888 thousand; ii) the cash value and cash equivalents (€1,459 thousand); iii) the value of loans to Group companies (€25,274 thousand); iv) the value of trade receivables arising both from the exempt management and, as specified in the Revenue Agency Circular no 8/E of 2008, from the taxable management (€21,374 thousand), including receivables from customers, receivables for commercial relationships with subsidiaries, loans to suppliers for advance payments (for tangible fixed assets) and chargebacks. Furthermore, to ensure that the ratio is not affected by other items not directly related to either tax-exempt or taxable operations whose inclusion in the denominator could distort the result of the asset prevalence criterion, the following are excluded: v) the value of deferred tax assets (€42,884 thousand); vi) the value of tax receivables (€1,478 thousand); and vii) prepaid expenses relating to tax-exempt leasing activities (€1,299 thousand).

Revenue parameter

(In € thousand)	31/12/2023
Rental income and similar revenue (A)	59,459
Capital gains "realised" on the sale of properties held for leasing and the sale of real estate rights on such properties (B)	2,889
Dividends and capital gains from SIIQ/SIINQ, SICAF and eligible real estate funds (C)	50,085
TOTAL NUMERATOR (D)=(A)+(B)+(C)	112,433
TOTAL INCOME ITEMS ^* (E)	140,543
Items excluded from the ratio denominator:
Revaluation of the real estate portfolio at 31 December 2023 (release of previous devaluations) (F1)	-2,864
Income from chargebacks (F2)	-5,852
Releases of provisions for impairment and provisions for risks and charges (F3)	-2,616
Write-backs adjusting write-downs of equity investments (F4)	-2,134
Income on cost adjustments (F5)	-146
Deferred tax assets and liabilities, income from tax consolidation (F6)	-10,735
Total adjustments (F)	-24,347
TOTAL DENOMINATOR (G) =(E)+(F)	116,196
REVENUE PARAMETER (D)/(G)	96.76%

^* Income statement: A) + B) 11) a) + C) 15) + C) 16 + C) 17bis) + D) 18) a) + 20) c) + 20) d).

The revenue parameter, as shown in the table above, is given by the ratio between:

―

the numerator, amounting to a total of €112,433 thousand, which includes revenue from: (i) rental income on real estate properties held for leasing (investment properties, properties under development and properties for leasing under disposal) amounting to a total of €59,459 thousand. It should be noted that the above amount includes any income assimilated to rents, such as compensation paid by tenants (but also income from the reinvoicing of costs to tenants); (ii) gross capital gains realised during the fiscal year on the sale of assets held for leasing and related real estate rights, for an amount of €2,889 thousand; (iii) dividends and capital gains on investments in SIIQ/SIINQ, SICAFs and real estate funds qualified for the purposes of the Special Regime, equal to €50,085 thousand; and

―

the denominator, for a total amount of €116,196 thousand. This amount corresponds to the total amount of the positive components on the profit and loss account (€140,543 thousand), adjusted to ensure that the ratio is not affected by other items not directly related to either tax-exempt or taxable operations whose inclusion in the ratio denominator could distort the result of the economic prevalence criterion. As a result, the following items were excluded: (i) reintegration of real estate values recognised during the year (€2,864 thousand); (ii) income representing the reinvoicing of costs such as, mainly, those related to secondments of personnel, reinvoicing of costs to tenants of buildings held for leasing and reinvoicing to subsidiaries (€5,852 thousand); (iii) release of funds and other reversals of impairment losses (€2,616 thousand); (iv) write-backs of impairment write-downs on equity investments, to correct previous impairments (€2,134 thousand); (v) non-recurring income for taxes of previous years (€146 thousand); and (vi) deferred tax income, income from tax consolidation (€10,735 thousand).

4.7.3.2.2 Breakdown of economic items between tax-exempt and taxable operations and related allocation criteria

The income statement for the year ended 31 December 2023 is shown below, divided into tax-exempt and taxable transactions (figures in euros).

	Total (A)	Tax-exempt transactions (B)	Taxable transactions (A)-(B)
A) Value of production
1) revenue from sales and services:	76,189	59,459	16,730
5) other revenue and income	14,461	13,415	1,046
TOTAL VALUE OF PRODUCTION A)	90,650	72,874	17,776
B) Costs of production
6) for raw and auxiliary materials, consumables and goods for sale	-32	-	-32
7) for services	-18,818	-18,566	-252
8) for use of third-party assets	-631	-616	-15
9) personnel expense	-7,041	-6,813	-228
10) amortisation, depreciation and impairment	-100,712	-100,695	-17
11) changes in inventories of raw and auxiliary materials, consumables and goods for sale	-13,800	-	13,800
12) provisions for risks	-215	-215	-
14) other operating expenses	-9,454	-9,390	-64
TOTAL COSTS OF PRODUCTION B)	-150,703	-136,295	-14,408
DIFFERENCE BETWEEN VALUE AND COSTS OF PRODUCTION (A+B)	-60,053	-63,421	3,368
C) Financial income and expenses
15) income from equity investments	50,253	50,085	168
16) other financial income	603	-	603
17) interest and other financial expenses	-23,785	-23,014	-771
Total financial income and expenses (15+16+17+17 bis) C)	27,071	27,071	-
D) Adjustments to financial assets
18) write-backs	2,134	-	2,134
19) write-downs	-32,227	-31,755	-472
TOTAL VALUE ADJUSTMENTS ON FINANCIAL ASSETS (18+19) D)	-30,093	-31,755	1,662
PROFIT (LOSS) BEFORE TAX (A + B +/-C +/-D)	-63,075	-68,105	5,030
20) Income tax for the fiscal year	3,727	2,829	898
21) Profit (loss) for the fiscal year	-59,348	-65,276	5,928

The results shown in the table above relating to the two types of transactions come from the separation of the economic items for the 2023 fiscal year resulting from the separate accounting adopted by the Permanent Establishment (for such items). The purpose of separate accounting is, in fact, to identify the operating results of tax-exempt and taxable transactions through: i) the allocation of specifically attributable economic items to each of the two types of transactions; ii) the pro-rata allocation of the "common" economic items to each of the two types of transactions (since they are not specifically attributable to either of the two types of transactions).

In particular, it should be noted that the division of "common" items into tax-exempt and taxable transactions was made using the revenue parameter described above as reference, since it was deemed the most suitable percentage parameter for said division; once it has been cleared of the economic items that are not attributable to any activity carried out, it effectively expresses the percentage incidence ratio of the leasing activity, compared to the total activities carried out.

The main criteria followed to decide to which type of transaction the various economic items resulting from the table above should be allocated are set out below.

4.7.3.2.2.1 Production value

1) Revenue from sales and services

(1.1) Rental income: this is divided into tax-exempt and taxable operations based on the type of property concerned. Specifically, rental income is allocated (a) to exempt operations if they relate to properties held for leasing (Investment property, Property under development and Properties held for leasing under disposal); (b) to the taxable operations if they relate to the leasing of assets purchased for resale or agreements to sublet assets (which the Permanent Establishment holds under lease and not directly);

(1.2) service revenue: this includes revenue specifically derived from real estate, administrative, accounting and tax services provided by the Permanent Establishment to subsidiaries and/or third parties. Since this is an activity other than the leasing activity falling within the scope of tax-exempt operations, the service revenue is fully allocated to taxable operations;

(1.3) revenue from the sale of properties purchased for resale: this is allocated to taxable operations.

2) Other revenues and income

The rule established for rental income also applies to revenue from chargebacks of costs to tenants, insurance indemnities and revenue "equivalent" to rental income or in any way connected to the leasing activity, which is therefore allocated to tax-exempt transactions if it derives from properties held for leasing and to taxable transactions if it derives from the leasing of properties purchased for resale.

Capital gains on the sale of properties held for leasing are allocated to tax-exempt transactions, whereas capital gains on the sale of other fixed assets are allocated to taxable transactions.

Any other revenue classified under this item is allocated to taxable transactions, with the exception of adjustments to write-downs of receivables, which will be explained below, and revenue from contingent assets and adjustments to costs recognised in previous fiscal years, which are allocated to the two types of transactions on the basis of the original allocation of the adjusted cost.

4.7.3.2.2.2 Costs of production

Building management and maintenance costs, indirect taxes on lease agreements, the single municipal property tax and all costs or provisions for risks and charges in any way directly connected to the real estate business, regardless of the profit and loss account item under which they are classified and in line with the revenue allocation criterion, are allocated to (a) tax-exempt transactions if they relate to properties held for leasing and (b) taxable transactions if they relate to the leasing of properties purchased for resale or property sub-leasing.

The other costs for services, costs for raw and auxiliary materials, consumables and goods for sale, costs for the use of third-party assets, personnel costs, other provisions for risks and miscellaneous operating expenses are mainly costs that are "common" to the two types of transactions and, as such, are divided between them on the basis of the revenue parameter as previously calculated (this also applies to any adjustments to these costs made in fiscal years subsequent to their entry in the accounts).

The following are exceptions: (i) costs for the use of third-party assets, consisting of rental income on properties sub-leased by the Permanent Establishment, which are allocated to taxable transactions; and (ii) under miscellaneous operating expenses, capital losses from the sale of properties held for leasing, which are allocated to tax-exempt transactions. Another exception is the costs for purchases or improvements to properties purchased for resale, classified under "Costs for raw and auxiliary materials, consumables and goods for sale", and the corresponding revenue (or changes in the value of properties purchased for resale) classified under "Change in inventories of raw and auxiliary materials, consumables and goods for sale", which are allocated to taxable transactions.

Depreciation and write-downs of fixed assets are allocated to tax-exempt transactions if they relate to properties held for leasing. Other amortisation, depreciation and impairment of tangible and intangible fixed assets are considered "common" expenses for the two types of transactions and are divided between them on the basis of the revenue parameter.

Write-downs (subsequent adjustments) and losses on receivables from leases and property disposals are allocated to tax-exempt transactions if they relate to properties held for leasing and to taxable transactions if they relate to properties purchased for resale or property sub-leasing agreements. Write-downs (subsequent adjustments) and losses on other receivables are considered "common" expenses for the two types of transactions and are divided between them on the basis of the revenue parameter.

4.7.3.2.2.3 Financial income and expenses

Income from investments and other financial income is allocated in full to taxable operations, with the exception of: (i) what is indicated below for financial income arising from interest rate hedging transactions on financing (which is used to correct financial expenses); (ii) income relating to investments in SIIQ/ SIINQ, SICAFs and other qualified real estate funds, which by virtue of an express regulatory provision count as exempt operations.

The following should be noted with reference to the main types of financial expenses:

―

financial expenses relating to mortgage loans structured in such a way as to assign, in various ways, the income from managing the properties as collateral for loans repayments are considered as "specifically" referring to tax-exempt and/ or taxable transactions according to the type of transaction to which the property covered by the mortgage guarantee is allocated. Consequently, for loans that (i) have properties held for leasing as collateral and that (ii) simultaneously have structures that assign the related management income as collateral for loan repayments, the related financial expenses have been allocated to tax-exempt transactions, while if the loan collateral comprises properties purchased for resale, the related financial expenses have been allocated to taxable transactions.

In cases where the loans from which the aforesaid financial expenses originate are the subject of interest rate hedging transactions, the related hedging income and charges are allocated to tax-exempt or taxable transactions depending on the allocation of the hedged cash flows;

―

financial expenses relating to short-term payables and medium/long-term non-mortgage loans that are not assisted by the aforesaid cash flow hedging (such as convertible bond loans and short-term loan facilities), including those from loans by subsidiaries, are considered costs that are "common" to the two types of transactions and have consequently been divided between them on the basis of the revenue parameter as previously calculated.

4.7.3.2.2.4 Value adjustments on financial assets

Write-downs of equity investments and other securities (e.g. UCITS units) and any subsequent write-backs are allocated to tax-exempt transactions if they relate to investments in SIIQ/ SIINQs, SICAFs and other eligible real estate funds. Otherwise, they are allocated to taxable transactions.

Write-downs (and any subsequent adjustments) and losses on receivables of a financial nature are allocated to taxable transactions.

Income and expenses recognised as a result of changes in the fair value of derivative financial instruments that are not used to hedge financial flows (cash flow hedges) are allocated to the taxable operations.

4.7.3.2.2.5 Taxes for the fiscal year

Current and deferred tax income and expenses are allocated to tax-exempt or taxable transactions according to the type of transaction to which the taxable income from which they arise (will arise) is allocated.

With regard to the income and expenses that constitute adjustments to economic items accounted for in the financial statements of fiscal years prior to the entry into the special regime, or contingencies representing costs and charges that would have been allocated to fiscal years prior to the entry into the special regime (continuing with the regime applied by Beni Stabili SPA SIIQ), these items - regardless of their classification within the margins or other items identified above - are fully allocated to taxable transactions, as they are closely related to (and adjust) components accrued in fiscal years in which the entire income was taxable.

4.7.4 Shareholders' equity (endowment fund)

Shareholders' equity comprises:

(In € thousand)	31/12/2023	31/12/2022	Changes
III Revaluation reserves
• Reserve pursuant to law 266/05	911,943	911,943	-
• Revaluation reserve law 72/83	191	191	-
• Revaluation reserve law 413/91	53	53	-
• Revaluation reserve law 2/2009	24,130	24,130	-
• Revaluation reserve law 126/2020	182,390	182,390	-
• Reserve Article 89 of Presidential Decree 917/86 and law 342/2000	12	12	-
• Other revaluation reserves suspended since the 1999 San Paolo IMU spin-off	92,885	92,885	-
VI Other reserves	441,762	479,631	-37,869
VII Cash flow hedge reserve	-	-	-
IX Profit (loss) for the year	-59,348	114	-59,462
TOTAL ENDOWMENT FUND	1,594,018	1,691,349	-97,331

The change in the endowment fund was negative overall and amounted to €97,331 thousand.

This change is due to:

I. the net liquidity transferred to the "parent company" by the Permanent Establishment in Italy for €51,990 thousand;

II. the €59,348 thousand in profit for the 2023 fiscal year;

III. certain other contributions to the Permanent Establishment in Italy from the "parent company" for €14,007 thousand, corresponding to the financial expenses and services incurred by the parent company on behalf of the Permanent Establishment.

The €114 thousand in profit for 2022 was reclassified under "other reserves".

The table below summarises the movements in shareholders' equity (endowment fund) from 1 January 2022 to 31 December 2023.

Balance as at 31 December 2022	1,211,604	479,631	114	1,691,349
Transfer of 2022 profit/loss to other reserves	-	114	-114	-
Contributions (repayments) from (to) the "parent company"	-	-37,983	-	-37,983
Net income for the 2023 fiscal year	-	-	-59,348	-59,348
BALANCE AS AT 31 DECEMBER 2023	1,211,604	441,762	-59,348	1,594,018

It should be noted that at 31 December 2023, the following reserves were tax-exempt, for a total of €1,221,604 thousand: i) the revaluation reserve pursuant to law no 266/05 (€911,943 thousand); ii) the revaluation reserve pursuant to law no 78/83, (€191 thousand); iii) the revaluation reserve under law no 413/91 (€53 thousand); iv) the revaluation reserve under law no 2/2009 (€24,130 thousand); v) the revaluation reserve pursuant to law no 126/2020 (€182,390 thousand); vi) the contribution reserve pursuant to Article 55 (now 89) of Presidential Decree, 917/86 and in accordance with law no 342/2000 (€12 thousand); and vii) the tax suspension reserve transferred by San Paolo IMI following the partial demerger that took place in 1999 (€92,885 thousand).

4.7.5 Tables and details of some balance sheet and profit and loss account items

Below are some detailed tables of balance sheet and profit and loss account items.

These only include the tables considered useful for a better understanding of the data used to calculate the main asset and economic parameters of the real estate leasing activity, as previously reported. Where applicable, to facilitate reading of the 2023 figures a cross-reference has been inserted with the systems used to calculate these parameters.

These detailed tables are taken from the notes to the profit and loss account and balance sheet as at 31 December 2023.

All the data presented below are in thousands of euros.

4.7.5.1 Fixed assets

4.7.5.1.1 Tangible fixed assets

4.7.5.1.1.1 Land and buildings

	Balance as at 31 December 2022				Balance as at 31 December 2023
(In € thousand)	Historical cost	Accumulated depreciation	Accumulated write-downs	Total	Additional purchases / expenses	Depreciation
Land	560,430	-	-18,673	541,757	-	-
Property structure	389,973	-16,889	-31,802	341,282	95	-4,462
Interior finishes	90,380	-35,405	-4,111	50,864	1,643	-8,527
Exterior finishes and roofing	182,174	-22,783	-11,917	147,474	1,009	-5,689
Facilities	183,520	-43,675	-11,201	128,644	1,776	-10,907
Quid plus for commercial licenses	0	0	0	0
Investment properties	1,406,477	-118,752	-77,704	1,210,021	4,523	-29,585
Land	31,100	-	-	31,100	-	-
Buildings under development	40,060	-	-	40,060	10,601	-
Properties under development	71,160	-	-	71,160	10,601	-
Land	7,469	-	-1,253	6,216	-	-
Property structure	4,773	-167	-	4,606	-	-49
Interior finishes	499	-174	-	325	-	-41
Exterior finishes and roofing	938	-132	-	806	-	-26
Facilities	911	-208	-	703	-	-42
Operating properties	14,590	-681	-1,253	12,656	-	-158
TOTAL LAND AND BUILDINGS	1,492,227	-119,433	-78,957	1,293,837	15,124	-29,743

	Balance as at 31 December 2023	Sales			Substitution elimination
(In € thousand)	Write-down/ Revaluation	Historical cost	Accumulated depreciation	Accumulated write-downs	Historical cost	Accumulated depreciation
Land	-18,829	-9,917	-	-	-	-
Property structure	-24,115	-7,316	298	-	-41	3
Interior finishes	-2,234	-862	333	-	-603	463
Exterior finishes and roofing	-10,969	-1,747	229	-	-423	72
Facilities	-8,529	-1,722	423	-	-878	318
Quid plus for commercial licenses
Investment properties	-64,676	-21,564	1,283	-	-1,945	856
Land	-	-	-	-	-	-
Buildings under development	-	-	-	-	-	-
Properties under development	-	-	-	-	-	-
Land	-	-	-	-	-	-
Property structure	-	-	-	-	-	-
Interior finishes	-	-	-	-	-	-
Exterior finishes and roofing	-	-	-	-	-	-
Facilities	-	-	-	-	-	-
Operating properties	-	-	-	-	-	-
TOTAL LAND AND BUILDINGS	-64,676	-21,564	1,283	-	-1,945	856

	Substitution elimination	Reclassifications			Balance as at 31 December 2021
(In € thousand)	Accumulated write-downs	Historical cost	Accumulated depreciation	Accumulated write-downs	Historical cost	Accumulated depreciation
Land	-	-6,621	-	1,608	543,892	-
Property structure	-	-13,635	201	1,918	369,076	-20,849
Interior finishes	-	-3,153	815	456	87,405	-42,321
Exterior finishes and roofing	3	-7,140	261	1,248	173,873	-27,910
Facilities	3	-6,718	240	1,728	175,978	-53,601
Quid plus for commercial licenses					0	0
Investment properties	6	-37,267	1,517	6,958	1,350,224	-144,681
Land	-	-	-	-	31,100	-
Buildings under development	-	-	-	-	50,661	-
Properties under development	-	0	-	-	81,761	-
Land	-	-1,304	-	-	6,165	-
Property structure	-	-1,001	55	-	3,772	-161
Interior finishes	-	-104	51	-	395	-164
Exterior finishes and roofing	-	-197	31	-	741	-127
Facilities	-	-191	50	-	720	-200
Operating properties	-	-2,797	187	-	11,793	-652
TOTAL LAND AND BUILDINGS	6	-40,064	1,704	6,958	1,443,778	-145,333

	Balance as at 31 December 2021
(In € thousand)	Accumulated write-downs	Total
Land	-35,894	507,998
Property structure	-53,999	294,228
Interior finishes	-5,889	39,195
Exterior finishes and roofing	-21,635	124,328
Facilities	-17,999	104,378
Quid plus for commercial licenses	0	0
Investment properties	-135,416	1,070,127
Land	-	31,100
Buildings under development	-	50,661
Properties under development	-	81,761
Land	-1,253	4,912
Property structure	-	3,611
Interior finishes	-	231
Exterior finishes and roofing	-	614
Facilities	-	520
Operating properties	-1,253	9,888
TOTAL LAND AND BUILDINGS	-136,669	1,161,776

The "Investment assets" item includes assets held for leasing that are not subject to a major restructuring operation in progress requiring them to be wholly vacated. These assets, intended for rent and therefore only for optimal display purposes, are temporarily classified under "Assets under development" for the duration of the redevelopment project itself. The costs of small redevelopment operations in progress on buildings held for leasing are classified in the balance sheet item "Assets in progress and advances".

The item "Operating properties" refers to the portion of a building located at Via Cornaggia in Milan, used by the Permanent Establishment as offices.

With respect to the movements during the fiscal year 2023, it should be noted that:

―

during the fiscal year, expenses were incurred that qualified as contributing to the increase in the value of the real estate properties (in accordance with the reference principles) for a total of €15,124 thousand, of which €4,523 thousand relating to "Investment assets", and €10,601 thousand for "assets under development". The additional expenses incurred on "Investment assets" led to the disposal of certain "replaced" real estate assets that have not yet been fully depreciated with a net book value of €1,083 thousand (acquisition value, net of depreciation and impairment).

In the above table, the increases in "Investment assets" include the purchase from a subsidiary of part of the property in Milan, for €80 thousand;

―	depreciation for the fiscal year amounted to €29,743 thousand, in addition to which write-downs were necessary due to impairment losses (assessed on individual properties) considered as lasting (and supported by valuations by an independent appraiser) for €67,540 thousand, while write-backs of previous impairments amounted to €2,864 thousand (for a net amount of €64,676 thousand);
―	the sales, which concerned two properties, were carried out at a total disposal price of €23,130 thousand, against a book value of the assets sold €20,281 thousand (acquisition value net of accumulated depreciation);
―	the Permanent Establishment reclassified certain buildings between the various financial statement items. Specifically:

(i) part of the real estate properties in Milan, used in part as the headquarters of the Permanent Establishment, for a net book value of €2,610 thousand, following its leasing to third parties, has been moved from the "Capital goods" category to the "Investment assets" category. This reclassification results in a zero balance on the "Land and buildings" item between two of its sub-items,

(ii) two properties, with a total value of €31,402 thousand, were reclassified from the "Investment properties" category to current assets in light of preliminary sales agreements.

4.7.5.1.1.2 Other assets

	Balance as at 31/12/2022					Sales
(In € thousand)	Historical cost	Accumulated depreciation	Total	Increases	Depreciation	Historical cost
Furniture and furnishings	841	-178	663	20	-30	-
Electronic machines and miscellaneous equipment	429	-292	137	27	-55	-
Other assets	1,270	-470	800	47	-85	-

	Sales	Elimination		Balance as at 31/12/2023
(In € thousand)	Accumulated depreciation	Historical cost	Accumulated depreciation	Historical cost	Accumulated depreciation	Total
Furniture and furnishings	-	-	-	861	-208	653
Electronic machines and miscellaneous equipment	-	-35	35	421	-312	109
Other assets	-	-35	35	1,282	-520	762

4.7.5.1.1.3 Fixed assets under construction and advance payments

This item includes the cost of property redevelopment initiatives underway on "Investment properties" for €17,555 thousand and contract down payments to suppliers for projects for €3,560 thousand.

4.7.5.1.2 Financial assets Investments

(In € thousand)	a) Subsidiaries	b) Affiliated companies	d-bis) Other companies	Total
Balance as at 31 December 2022	903,017	34,920	4,564	942,501
Incorporation of companies, capital increases and other contributions	46,240	15,550	-	61,790
Acquisitions	-	-	-	-
Sales and liquidations	(7)	-	-24	-31
Write-downs	-31,765	-	-462	-32,227
Write-backs	2,134	-	-	2,134
Reclassifications	(7)	7	-	-
Balance as at 31 December 2023	919,612	50,477	4,078	974,167
of which:
• SIIQ/SIINQ, SICAF real estate and eligible real estate funds	900,274	-	-	900,274
• Companies other than the above	19,338	50,477	4,078	73,893

a) Subsidiaries

(In € thousand)	% of equity investment	Equity (net assets) of the related company	Book value of investment (A)	% of equity attributable to Covivio (B)	Difference between book value of equity investments and corresponding % of equity (A)-(B)
Covivio Immobiliare 9 SPA SINQ SIINQ	100%	87,422	87,422	87,422	-
Covivio Development Italy SPA SIINQ	100%	508,820	469,475	508,820	-39,345
Covivio 7 SPA	100%	9,060	9,060	9,060	-
Covivio Development Trading SRL	100%	10,842	10,226	10,842	-616
Covivio Attività Immobiliari 4 SRL	100%	24	24	24	-
Covivio Attività Immobiliari 5 SRL	100%	28	28	28	-
Central Sicaf SPA	51%	672,385	343,377	343,377	-
TOTAL		1,288,581	919,612	959,573	-39,961

b) Affiliated companies

(In € thousand)	% of investment/ shares	Balance as at 31/12/2022	Acquisitions/ subscriptions	Write-backs	Write-downs	Sales
A - Affiliated companies: Joint stock companies
Zabarella 2023 SRL	65%	-	13,858	-	-	-
Real Estate Solution & Technology SRL	30%	3	-	-	-	-
TOTAL A		3	13,858	0	0	0
B - Affiliated companies: Securities in real estate investment funds
Porta Romana fund	no 732.179 - 32.02%	34,917	1,692	-	-	-
TOTAL B		34,917	1,692	-	-	-
TOTAL A + B		34,920	15,550	-	-	-

(In € thousand)	Reclassifications	Balance as at 31/12/2023
A - Affiliated companies: Joint stock companies
Zabarella 2023 SRL	7	13,865
Real Estate Solution & Technology SRL	-	3
TOTAL A	7	13,868
B - Affiliated companies: Securities in real estate investment funds
Porta Romana fund	-	36,609
TOTAL B	-	36,609
TOTAL A + B	7.00	50,477

Zabarella 2023 SRL (formerly Covivio Attività Immobiliari 3 SRL) is the management vehicle for a joint venture between Covivio and one of Italy's biggest construction and restoration companies to redevelop a prestigious property in the centre of Padua and transfer it into a residential property for resale. During the year, Covivio sold part of the shares in the vehicle to the partner and then contributed to its capitalisation for the purposes of the project. Although holding 65% of the vehicle at the end of the fiscal year, in the balance sheet, in accordance with the accounting principles in force, the investment is classified as investments in associates, because it is a joint venture. It should be noted that the book value of the investment in Zabarella 2023 SRL has not been adjusted regarding the lower portion corresponding to shareholders' equity, as the loss is qualified as temporary and non-lasting. The company's sole activity is the redevelopment and sale of the aforementioned asset and is expected to make a more than sufficient profit to offset the losses incurred in the medium term.

d-bis) Other companies

(In € thousand)	% of investment/ shares	Balance as at 31/12/2022	Acquisitions/ subscriptions	Write-backs	Write-downs	Sales
Other companies
Nomisma SPA		24	-	-	-	-24
TOTAL OTHER COMPANIES		24	-	-	-	-24
Securities in real estate investment funds
Securis Real Estate fund	99	4,540	-	-	-462	-
TOTAL SECURITIES IN FUNDS		4,540	-	-	-462	-
TOTAL		4,564	-	-	-462	-24

(In € thousand)	Reclassifications	Balance as at 31/12/2023
Other companies
Nomisma SPA	-	-
TOTAL OTHER COMPANIES	-	-
Securities in real estate investment funds
Securis Real Estate fund	-	4,078
TOTAL SECURITIES IN FUNDS	-	4,078
TOTAL	-	4,078

Fixed receivables "a) from subsidiaries"

This item exclusively includes the balance of the loan granted to the subsidiary Covivio Development Trading SRL expiring on 31 December 2026, divided between the capital line of €13,805 thousand and accrued interest (payable at maturity) of €193 thousand.

4.7.5.2 Current assets

4.7.5.2.1 Inventories

Land and buildings

	Balance as at 31/12/2022
(In € thousand)	Historical cost	Accumulated writedowns	Total	Acquisitions	Incremental expenses	Writedowns
Land	31	-31	-	-	-	-
Construction	40,604	-26,804	13,800	-	32	-
Properties purchased for resale	40,635	-26,835	13,800	-	32	-
Land	3,111	-1,685	1,426	-	-	-
Construction	10,371	-5,537	4,834	-	-	-1,467
Properties held for leasing under disposal ^*	13,482	-7,222	6,260	-	-	-1,467
TOTAL LAND AND BUILDINGS	54,117	-34,057	20,060	-	32	-1,467

	Sales		Reclassifications		Balance as at 31/12/2023
(In € thousand)	Historical cost	Accumulated writedowns	Historical cost	Accumulated writedowns	Historical cost	Accumulated writedowns
Land	-	-	121	-121	152	-152
Construction	-40,515	26,683	-121	121	-	-
Properties purchased for resale	-40,515	26,683	-	-	152	-152
Land	-3,111	1,685	6,262	-	6,262	-
Construction	-10,371	5,537	25,140	-	25,140	-1,467
Properties held for leasing under disposal ^*	-13,482	7,222	31,402	-	31,402	-1,467
TOTAL LAND AND BUILDINGS	-53,997	33,905	31,402	-	31,554	-1,619

	Balance as at 31/12/2023
(In € thousand)	Total
Land	-
Construction	-
Properties purchased for resale	-
Land	6,262
Construction	23,673
Properties held for leasing under disposal ^*	29,935
TOTAL LAND AND BUILDINGS	29,935

⁽¹⁾ In the income statement, write-downs of leased assets held for sale have been classified under item B) 10) c) in a consistent manner with the impairments of all assets held for leasing.

4.7.5.2.2 Receivables

4.7.5.2.2.1 From clients

(In € thousand)	31/12/2023	31/12/2022
Trade receivables (commercial) due within 12 months
Receivables from customers for sales of properties and investments	-	5,600
Tenants	17,100	24,024
Provision for impairment of trade receivables due within 12 months	-15,728	-18,516
Total trade receivables (commercial) due within 12 months	1,372	11,108
Trade receivables (commercial) due beyond 12 months
Tenants	14,599	15,538
Total trade receivables (commercial) due beyond 12 months	14,599	15,538
TOTAL TRADE RECEIVABLES	15,971	26,646

4.7.5.2.2.2 From subsidiaries

(In € thousand)	31/12/2023	31/12/2022
Receivables from subsidiaries due within 12 months
Trade receivables for the provision of services and leases	1,498	1,177
Receivable arising from the consolidation of IRES taxable income	839	285
Total receivables from subsidiaries due within 12 months	2,337	1,462
Receivables from subsidiaries due beyond 12 months
Trade receivables for the provision of services and leases	-	-
Total receivables from subsidiaries due beyond 12 months	-	-
TOTAL RECEIVABLES FROM SUBSIDIARIES	2,337	1,462

4.7.5.2.2.3 Tax receivables

Tax receivables total €1,478 thousand and are classified within a period of 12 months or beyond depending on the expected collection times, as indicated below.

The balance of the item "Tax receivables" due within 12 months, totalling €1,362 thousand (€5,379 thousand as at 31 December 2022), includes:

i) IRES and IRAP direct tax receivables of €258 thousand, respectively of €174 thousand (€108 thousand at 31 December 2022) and €84 thousand (€89 thousand at 31 December 2022);

ii) the VAT credit at the end of the year for €1,089 thousand (€5,182 thousand at 31 December 2022).

"Tax receivables" beyond 12 months, in the amount of €116 thousand (and unchanged compared to 31 December 2022) include: i) the IRES credit (€92 thousand) resulting from the partial deductibility at the end of the period. IRES of the IRAP paid during previous financial transactions, as required by law no 2/2009 and law no 214/2011; and ii) the IRAP loan (€24 thousand), requested in repayment by a company controlled during the liquidation and transferred to Covivio. This receivable will be repaid directly to Covivio.

4.7.5.2.2.4 Deferred tax assets

(In € thousand)	Difference in book value/tax value of properties	Tax payables	Temporary non-deductible costs (including impairment of equity securities)	Total
Balance as at 31 December 2022	30,871	306	1,766	32,943
Net increases/(decreases) in P/L account	9,918	-306	289	9,901
Net increases/(decreases) in shareholders' equity	-	-	-	-
Balance as at 31 December 2023	40,789	-	2,055	42,844

4.7.5.2.2.5 Third-party receivables

(In € thousand)	31/12/2023	31/12/2022
Other receivables due within 12 months
Guarantee deposits	-	55
Advances and trade receivables	345	-
Other receivables	1,156	6,684
Provision for impairment of other receivables due within 12 months	-1,099	-1,213
Total other receivables due within 12 months	402	5,526
Other receivables due beyond 12 months
Receivables from the Municipality of Rome	6,758	7,492
Guarantee deposits	18	69
Provision for impairment of other receivables due beyond 12 months	-6,758	-7,492
Total other receivables due beyond 12 months	18	69
TOTAL THIRD-PARTY RECEIVABLES	420	5,595

4.7.5.2.3 Financial assets that are not fixed assets -at subsidiaries with centralised cash management

For the two years compared, the balance of this item (€10,437 thousand at 31 December 2023 and €5,815 thousand at 31 December 2022) refers entirely to receivables represented by the balances, assets held for Covivio and interest-bearing assets, cash pooling relationships with subsidiaries, set up for financial efficiency purposes with Covivio group central cash management in Italy.

4.7.5.2.4 Cash and cash equivalents

These total €1,459 thousand (€983 thousand as at 31 December 2022) and are entirely represented by bank deposits.

4.7.5.3 Accruals

Prepaid expenses and accruals of €1,299 thousand (€1,322 thousand at 31 December 2022), include the prepayments relating to the registration tax paid in advance on current lease payments and advances of brokerage fees incurred for the conclusion of existing leases (which, in compliance with the requirements of the reference standards, are recognised in the profit and loss account over the duration of the underlying lease)

4.7.5.4 Economic data

4.7.5.4.1 Production value

A1 - Revenue from sales and services ⁽¹⁾	FY 2023	FY 2022	Cross-reference with revenue parameter - par. 2.1
a) rental income	59,481	61,867
• from properties held for leasing	59,459	61,798	59,459	(A)
• from properties purchased for resale and sub-leases	22	69
b) service revenue	2,708	2,831
c) revenue from sale of properties purchased for resale	14,000	1
TOTAL A1	76,189	64,699

A5 - Other revenues and income	FY 2023	FY 2022	Cross-reference with revenue parameter - par. 2.1
a) capital gains on sale of fixed assets and revenue from sale of other property rights		2,889	73
of which:
• capital gains on sale of properties held for leasing recognised during the fiscal year	2,889	73	2,889	(B)
• capital gains on sale of other fixed assets	-	-
	2,889	73
b) write-backs
• write-backs on investment properties	2,864	1,458	2,864	(F1)
	2,864	1,458
c) contingent and non-existent assets
• write-backs of provisions for risks and charges	1,206	1,165	1,206	(F3)
• write-backs of provisions for impairment of receivables	1,410	2,087	1,410	(F3)
• contingencies for adjusted expenses (including insurance reimbursements)	217	76
• including those for recovery of other costs	146	12	146	(F5)
• including for other contingent and non-existent assets	71	64
• discounts receivable	-	22	-
	2,833	3,350
d) non-financial income and revenues from non-core business
• recovery of ancillary costs from tenants	5,654	7,452	5,654	(F2)
• recovery of intercompany ancillary costs and charges	198	322	198	(F2)
• insurance reimbursements	23	-	23
	5,875	7,774
TOTAL A5	14,461	12,655

4.7.5.4.2 Financial income

4.7.5.4.2.1 Income from equity investments

C15 - income from equity investments:	FY 2023	FY 2022
a) in subsidiaries and associated companies	50,253	121,191
i) of which dividends
• from SIIQ/SIINQ, SICAF and eligible real estate funds (distributions of profits)	50,085	105,856
• from other subsidiaries and associates	168	15,156
ii) of which positive margins on disposal	-	179
b) in parent companies	-	-
c) in subsidiaries of other parent companies	-	11
d) in other companies	-	-
TOTAL C15	50,253	121,202

4.7.5.4.2.2 Other financial products

C16 - Other financial income:	FY 2023	FY 2022
a) receivables recorded in fixed assets	-	-
b) securities included in fixed assets that do not constitute equity investments	-	-
c) of securities classified as current assets other than equity investments	-	-
d) income other than the above:	-	-
• from subsidiaries	567	137
• from subsidiaries of other parent companies	-	-
• from other sources	36	542
interest income from banks	-	-
of which other prepaid interest and exchange rate differences	-	-
of which interest on tax credits	-	-
of which for discounting of receivables and other	37	542
TOTAL C16	603	679

4.7.5.5 Adjustments to financial assets: write-backs

D18 - Revaluations	FY 2023	FY 2022	Cross-reference with revenue parameter - par. 2.1
a) of equity investments
of which investments in SIIQ/SIINQs and real estate SICAFs	-	-
of which investments in other companies	2,134	25	2,134	(F4)
Total a) - of equity investments	2,134	25
b) of financial fixed assets other than equity investments	-	-	-	(F4)
Total b) - of financial fixed assets other than equity investments	-	-
d) of derivative financial instruments
• Positive ineffective portion of derivative instruments	-	529
• Ineffective positive quota conversion option (ORNANE) and IRS	-	-
Total d) - of derivative financial instruments	-	529
TOTAL D18 - WRITE-BACKS	2,134	554

4.7.5.6 Taxes

20 - Income tax for the fiscal year:	FY 2023	FY 2022	Cross-reference with revenue parameter - par. 2.1
a) current taxes	-3,824	1,539
• Current taxes	-3,876	-676	-
• Income from restatement of current taxes for the prior year	52	1	-
• Expenses from restatement of current taxes for the prior fiscal year	-	-
• Income from restatement of substitute tax following revaluation pursuant to law no 126/2020		-	2,214	-
b) deferred tax	-3,184	2,626
• Accruals and releases for deferred tax assets	-3,246	2,626	-
• Recalculation of deferred tax assets from previous years	62	-	-
c) prepaid taxes	9,834	-17,191
• Accruals and releases for deferred tax assets	9,834	-2,744	9,834	(F6)
• Recalculation of deferred tax assets from previous years	-	-14,447	-
d) income from tax consolidation	901	284	901	(F6)
TOTAL 20	3,727	-12,742	10,735

5 General Meeting and corporate governance

5.1 Agenda and text of draft resolutions for the Combined General Meeting of 17 April 2024

5.1.1 Agenda

5.1.1.1 Ordinary resolutions

―	Approval of the parent company's financial statements for the year ended 31 December 2023;
―	Approval of the consolidated financial statements for the year ended 31 December 2023;
―	Appropriation of income - Distribution of dividend;
―	Option to pay the dividend in shares;
―	Approval of the Statutory Auditors' special report prepared in accordance with Article L. 225-40 of the French Commercial Code and the regulated agreements referred to in Article L. 225-38 et seq. of the French Commercial Code referred to therein;
―	Approval of the information mentioned in Article L. 22-10-9, I of the French Commercial Code related to remuneration of all corporate executive officers for the fiscal year ended 31 December 2023;
―	Approval of the fixed, variable and exceptional components of the total remuneration and all benefits in kind paid during the fiscal year ended 31 December 2023 or allocated in respect of the said fiscal year to Jean-Luc Biamonti as Chairman of the Board of Directors;
―	Approval of the fixed, variable and exceptional components of the total remuneration and all benefits in kind paid during the fiscal year ended 31 December 2023 or allocated in respect of the said fiscal year to Christophe Kullmann as Chief Executive Officer;
―	Approval of the fixed, variable and exceptional components of the total remuneration and all benefits in kind paid during the fiscal year ended 31 December 2023 or allocated in respect of the said fiscal year to Olivier Estève as Deputy CEO;
―	Approval of the remuneration policy applicable to the Chairman of the Board of Directors;
―	Approval of the remuneration policy applicable to the Chief Executive Officer;
―	Approval of the remuneration policy applicable to the Deputy CEO;
―	Approval of the remuneration policy applicable to Directors;
―	Renewal of the Directorship of Christophe Kullmann;
―	Renewal of the term of office of Director Catherine Soubie;
―	Renewal of the term of office Director of Patricia Savin;
―	Appointment of KPMG SA as Statutory Auditor, to replace Mazars, whose term of office is coming to an end;
―	Appointment of ERNST & YOUNG et Autres as Statutory Auditors in charge of certifying sustainability information;
―	Authorisation to be given to the Board of Directors for the company to purchase treasury shares.

5.1.1.2 Extraordinary resolutions

―	Delegation of authority to the Board of Directors to increase the company's share capital through the incorporation of reserves, profits or premiums;
―	Authorisation to be granted to the Board of Directors to reduce the company's share capital through the cancellation of shares;
―	Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, maintaining the shareholders' preferential subscription right;
―	Delegation of authority to the Board of Directors to issue, through public offering, company shares and/or securities convertible into equity, with waiver of shareholders' preferential right of subscription and a mandatory priority period for share issues;
―	Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, with waiver of shareholders' preferential subscription rights, in the event of a public exchange offer initiated by the company;
―	Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, to pay for the contributions in kind granted to the company consisting of capital shares or transferable securities convertible into equity;
―	Delegation of authority to the Board of Directors to issue company shares as part of the public exchange offer initiated by the company for the shares issued by Covivio Hotels;
―	Delegation of authority to the Board of Directors to make capital increases reserved for employees of the company and companies in the Covivio group that are members of a company savings plan, with waiver of shareholders' preferential subscription right;
―	Modification of Article 3 (Purpose) of the company's Articles of Association;
―	Powers for formal recording requirements.

5.1.2 Text of the draft resolutions

5.1.2.1 Ordinary resolutions

FIRST RESOLUTION

(Approval of the parent company's financial statements for the year ended 31 December 2023).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the parent company's financial statements for the fiscal year ended 31 December 2023 and the reports of the Board of Directors and Statutory Auditors on these annual financial statements, approves in full the report of the Board of Directors and the parent company's financial statements for the year ended 31 December 2023, which include the balance sheet, income statement and notes, as presented, showing a loss of €8,417,361.56.

The General Meeting consequently approves the transactions reflected in these financial statements and summarised in these reports.

The General Meeting notes that there were no expenditure and charges covered by Article 39.4 of the French General Tax Code, and observes that there is no corporate income tax payable in this respect.

SECOND RESOLUTION

(Approval of the consolidated financial statements for the year ended 31 December 2023).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the reports of the Board of Directors and Statutory Auditors on the consolidated financial statements, approves the consolidated financial statements for the year ended 31 December 2023, which include the balance sheet, income statement and notes, as presented, as well as the transactions reflected by these financial statements and summarised in these reports.

The General Meeting notes that the consolidated net income of the Group as at 31 December 2023 was -€1,418,785k.

THIRD RESOLUTION

(Appropriation of income - Distribution of dividend).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, resolves, on the proposal of the Board of Directors:

―	to allocate the loss for the fiscal year ended 31 December 2023 in the amount of €8,417,361.56:

(i) on the "Retained earnings" account, which will thus be reduced from €3,551,940 to €0,

(ii) on the "Distributable revaluation adjustment" account for €4,865,421.56, which will be reduced from €12,825,588.19 to €7,960,166.63;

―	to also proceed with the distribution of a dividend of €333,321,083.70 deducted from:

(i) the "Distributable revaluation reserve" account, in the amount of €7,960,166.63,

(ii) the "Merger premium" account in the amount of €325,360,917.07.

Thus, each share will receive a dividend of €3.30.

The dividend will be paid on 27 May 2024.

On the basis of the total number of shares comprising the share capital as of 15 February 2024, i.e. 101,006,389 shares, and subject to the possible application of the provisions of Article 25.3 of the company's Articles of Association to shareholders regarding Withholding Tax, a total dividend of €333,321,083.70 will thus be allocated. This dividend only gives entitlement to the 40% rebate in the event of an annual, express, overall and irrevocable option for the progressive income tax scale pursuant to Article 200 A 2 of the French General Tax Code, and only for the portion of this dividend deducted from earnings subject to corporate income tax. In compliance with Article 158-3-3° b bis of the French General Tax Code, this rebate does not apply to earnings exempt from corporate income tax under the SIIC plan in application of Article 208 C of the French General Tax Code.

The corporate income tax-exempt dividend in application of Article 208 C of the French General Tax Code not eligible for the 40% rebate totals €231,094,740.

The dividend withheld on the profits subject to corporation tax totals €102,226,343.70.

The dividend drawn against the company's profits exempt from corporate income tax pursuant to Article 208-3° quater of the French General Tax Code totals €0.

The General Meeting resolves that, pursuant to the provisions of Article L. 225-210 of the French Commercial Code, the amount the shareholders may have waived, as well as the amount corresponding to treasury shares on the dividend payment date, which do not grant a right to dividends, will be allocated to the "Retained earnings" account. Accordingly, the General Meeting grants all powers to the Board of Directors, with a right of sub-delegation, under the conditions stipulated by the legal and regulatory provisions, for the purposes of determining, considering the number of shares held by the company at the record date, the overall amount of the dividend and, consequently, the amount that will be allocated to the "Retained earnings" account.

In accordance with the law, the General Meeting confirms that the dividends distributed for the previous three fiscal years were as follows:

Fiscal year	Type of dividend	Dividend paid per share	Amount of dividend eligible for the 40% rebate ⁽¹⁾	Amount of dividend not eligible for the 40% rebate
2020	Current	€3.60	€0.6681	€2.9319
2021	Current	€3.75	€0.9761	€2.7739
2022	Current	€3.75	€1.2939	€2.4561

⁽¹⁾ In case of option for a progressive rate of the revenue tax.

FOURTH RESOLUTION

(Option to pay the dividend in shares).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having confirmed that the share capital is entirely paid up and having reviewed the report of the Board of Directors, and in accordance with the provisions of Articles L. 232-18 to L. 232-20 of the French Commercial Code and Article 25.2 of the Articles of Association, offers each shareholder an option between payment of the dividend entirely in cash or entirely in new shares. This option would relate to the entire dividend per unit distributed under the third resolution above.

Accordingly, the General Meeting decides:

―	that the issue price of new shares allocated as payment of the dividend is set at 90% of the average listed price at the closure of the previous twenty sessions of the stock market preceding the date of this meeting, less the net amount of dividend per share subject to the 3 ^rd resolution, rounded up to the next closest hundredth of a cent;
―	that shareholders requesting payment of the dividend in new shares may exercise their option from 23 April 2024 until 7 May 2024 inclusive, by sending their request to the financial intermediaries authorised to pay the dividend or, for shareholders registered in the pure registered accounts with the company's agent, Société Générale Securities Services. Following the end of this period, the dividend will be paid in cash, with payment taking place on 27 May 2024, the date on which the delivery-payment of shares for those who have opted for payment in shares of the entirety of the dividend owed to them will also take place. Current rights to shares issued as payment of the dividend will be granted and therefore will grant rights, upon their issuance, to all distributions decided by the company from this date; and
―	that if the amount of the dividend for which the option is exercised does not correspond to a whole number of shares, shareholders will be able to obtain the whole number of shares immediately below, in addition to the balance in cash.

The General Meeting grants all powers to the Board of Directors to implement this delegation, with a right of sub-delegation, under the conditions stipulated by applicable legal and regulatory provisions, specifically for the purposes of:

―	establishing the issue price of the shares issued under the conditions set out above and performing all the necessary transactions relating or subsequent to the exercise of the option for the payment of the dividend in shares;
―	recording the number of shares issued and the capital increase resulting from the issuance of shares following the exercise of the option offered to the shareholders for payment of the dividend in shares;
―	charging the expenses of said capital increase to the amount of the related issue premium, and withdrawing from this amount the necessary sums, corresponding to 10% of the nominal amount of the issuance, in order to add to the legal reserve;
―	modifying the Articles of Association accordingly;
―	completing all formalities required to enter into negotiations on a regulated market in France or abroad for the shares issued and ensuring the financial service of the securities issued and the exercise of the attached rights; and
―	completing all publication formalities and, more generally, doing whatever is necessary and useful.

FIFTH RESOLUTION

(Approval of the Statutory Auditors' special report prepared in accordance with Article L. 225-40 of the French Commercial Code and the regulated agreements referred to in Articles L. 225-38 et seq. of the French Commercial Code referred to therein).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the Statutory Auditors' special report on the regulated agreements and undertakings referred to in Articles L. 225-38 et seq. of the French Commercial Code, approves this report and such regulated agreements entered into or executed during the fiscal year ended 31 December 2023.

SIXTH RESOLUTION

(Approval of the information mentioned in Article L. 22-10-9, I of the French Commercial Code related to remuneration of all corporate executive officers for the fiscal year ended 31 December 2023).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors on corporate governance prepared in accordance with Article L. 225-37 of the French Commercial Code, approves pursuant to Article L. 22-10-34, I of the French Commercial Code the information referred to in Article L. 22-10-9, I of the French Commercial Code related to remuneration of all corporate officers in respect of fiscal year ended 31 December 2023 and detailed in Section 5.3.4.2 of the company's Universal Registration Document for fiscal year 2023.

SEVENTH RESOLUTION

(Approval of the fixed, variable and exceptional components of the total remuneration and all benefits in kind paid during the fiscal year ended 31 December 2023 or allocated in respect of the said fiscal year to Jean-Luc Biamonti as Chairman of the Board of Directors).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors on corporate governance prepared in accordance with Article L. 225-37 of the French Commercial Code, approves, pursuant to Article L. 22-10-34, II of the French Commercial Code, the fixed, variable and exceptional components making up the total compensation and all benefits in kind paid during the fiscal year ended 31 December 2023 or granted in respect of the same fiscal year to Jean-Luc Biamonti in his capacity as Chairman of the Board of Directors, as described in said report, and appearing in Section 5.3.4.3.1 of the company's Universal Registration Document for fiscal year 2023.

EIGHTH RESOLUTION

(Approval of the fixed, variable and exceptional components of the total remuneration and all benefits in kind paid during the fiscal year ended 31 December 2023 or allocated in respect of the said fiscal year to Christophe Kullmann as Chief Executive Officer).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors on corporate governance prepared in accordance with Article L. 225-37 of the French Commercial Code, approves, pursuant to Article L. 22-10-34, II of the French Commercial Code, the fixed, variable and exceptional components making up the total compensation and all benefits in kind paid during the fiscal year ended 31 December 2023 or granted in respect of the same fiscal year to Christophe Kullmann in his capacity as Chief Executive Officer, as described in said report, and appearing in Section 5.3.4.3.2 of the company's Universal Registration Document for fiscal year 2023.

NINTH RESOLUTION

(Approval of the fixed, variable and exceptional components of the total remuneration and all benefits in kind paid during the fiscal year ended 31 December 2023 or allocated in respect of the said fiscal year to Olivier Estève as Deputy CEO).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors on corporate governance prepared in accordance with Article L. 225-37 of the French Commercial Code, approves, pursuant to Article L. 22-10-34, II of the French Commercial Code, the fixed, variable and exceptional components making up the total compensation and all benefits in kind paid during the fiscal year ended 31 December 2023 or granted in respect of the same fiscal year to Olivier Estève in his capacity as Deputy Chief Executive Officer, as described in said report, and appearing in Section 5.3.4.3.3 of the company's Universal Registration Document for fiscal year 2023.

TENTH RESOLUTION

(Approval of the remuneration policy applicable to the Chairman of the Board of Directors).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the Board of Directors' report on corporate governance pursuant to Article L. 225-37 of the French Commercial Code describing in particular the items of the remuneration policy of the corporate officers, approves, pursuant to Article L. 22-10-8 of the French Commercial Code the remuneration policy applicable to the Chairman of the Board of Directors presented and detailed in Section 5.3.4.1.1 of the company's Universal Registration Document for fiscal year 2023.

ELEVENTH RESOLUTION

(Approval of the remuneration policy applicable to the Chief Executive Officer).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the Board of Directors' report on corporate governance pursuant to Article L. 225-37 of the French Commercial Code describing in particular the items of the remuneration policy for the corporate officers, approves, pursuant to Article L. 22-10-8 of the French Commercial Code, the remuneration policy applicable to the Chief Executive Officer presented and detailed in Section 5.3.4.1.2 of the company's Universal Registration Document for fiscal year 2023.

TWELFTH RESOLUTION

(Approval of the remuneration policy applicable to the Deputy CEO).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the Board of Directors' report on corporate governance prepared in accordance with Article L. 225-37 of the French Commercial Code detailing in particular the items of the remuneration policy for the corporate officers, approves, pursuant to Article L. 22-10-8 of the French Commercial Code, the remuneration policy applicable to the Deputy CEO presented and detailed in Section 5.3.4.1.2 of the company's Universal Registration Document for fiscal year 2023.

THIRTEENTH RESOLUTION

(Approval of the remuneration policy applicable to the Directors).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the Board of Directors' report on corporate governance prepared in accordance with Article L. 225-37 of the French Commercial Code, detailing in particular the components of the remuneration policy for the corporate officers, approves, pursuant to Article L. 22-10-8 of the French Commercial Code, the remuneration policy applicable to the Directors presented and detailed in Section 5.3.4.1.3. of the company's Universal Registration Document for fiscal year 2023.

FOURTEENTH RESOLUTION

(Renewal of the Directorship of Christophe Kullmann).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors and noted that the Directorship of Christophe Kullmann expires at this General Meeting and resolves to renew the Directorship of Christophe Kullmann for a period of four (4) years expiring at the end of the General Meeting of Shareholders called in 2028 to approve the financial statements for the year ending 31 December 2027.

FIFTEENTH RESOLUTION

(Renewal of the Director's mandate of Catherine Soubie).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors, and having noted that the term of office of Catherine Soubie as a Director is due to expire at this General Meeting, resolves to reappoint, as of this day, Catherine Soubie as a Director, for a period of four (4) years expiring at the end of the General Meeting of Shareholders called in 2028 to approve the financial statements for the fiscal year ending 31 December 2027.

SIXTEENTH RESOLUTION

(Renewal of the term of office of Patricia Savin).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors, and having noted that the term of office of Patricia Savin as a Director is due to expire at this General Meeting, resolves to reappoint, as of this day, Patricia Savin as a Director, for a period of four (4) years expiring at the end of the General Meeting of Shareholders called in 2028 to approve the financial statements for the fiscal year ending 31 December 2027.

SEVENTEENTH RESOLUTION

(Appointment of KPMG SA as Principal Statutory Auditor, replacing Mazars, whose term of office is coming to an end).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors, and having noted that the term of office of Mazars, Statutory Auditor, expired at this General Meeting, resolves to appoint, with effect from this date, the company KPMG SA, a limited company whose registered office is located at Tour Eqho, 2 avenue Gambetta, 92066 Paris La Défense Cedex, registered in the Trade and Companies Register of Nanterre under number 775 726 417, as Principal Statutory Auditor, for a period of six (6) fiscal years expiring at the end of the General Meeting of Shareholders called in 2030 to approve the financial statements for the fiscal year ending 31 December 2029.

EIGHTEENTH RESOLUTION

(Appointment of ERNST & YOUNG et Autres as Statutory Auditors in charge of certifying sustainability information).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the Board of Directors' report, resolves to appoint, from this date, ERNST & YOUNG et Autres, a simplified share company with variable capital whose registered office is located at 1-2 Place des Saisons, Paris La Défense 1, 92400 Courbevoie, registered in the Trade and Companies Register of Nanterre under number 438 476 913, as Statutory Auditor responsible for certifying sustainability information, for a period of one (1) fiscal year corresponding to the remaining term of their appointment as auditors to the Company and expiring at the end of the General Meeting of Shareholders called in 2025 to approve the financial statements for the fiscal year ending 31 December 2024.

NINETEENTH RESOLUTION

(Authorisation to be given to the Board of Directors for the company to purchase treasury shares).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, having reviewed the report of the Board of Directors and in accordance with the provisions of Articles L. 225-210 et seq. and L. 22-10-62 et seq. of the French Commercial Code, Regulation (EU) 596/2014 of the European Parliament and Council of 16 April 2014, of Articles 241-1 to 241-7 of the General Regulations of the AMF and of the market practices allowed by the French Financial Markets Authority (Autorité des Marchés Financiers - AMF):

―	terminates, effective immediately, for the unused portion, the authorisation given by the Combined General Meeting of 20 April 2023;
―	authorises the Board of Directors, which may further delegate such authority under the conditions stipulated by applicable legal and regulatory provisions, to purchase treasury shares or cause them to be purchased all at once or in several instances at the time of its choosing; and
―	decides that purchases of company shares as described in the paragraph above may be for a number of shares such that the number of shares that the company would purchase during the buyback programme does not exceed 10% of the shares making up the share capital of the company (at any time whatsoever, and this percentage applies to adjusted capital based on the impact of transactions subsequent to this General Meeting). It is stipulated that (i) a maximum of 5% of the shares comprising the company's share capital may be allocated for holding purposes and subsequent payment or exchange within the framework of a merger, split or contribution, and (ii) in the event of an acquisition within the context of a liquidity agreement, the number of shares taken into account for calculating the 10% limit on the total share capital mentioned above corresponds to the number of shares purchased less the number of shares resold during the term of this authorisation, and (iii) purchases made by the company may not under any circumstances lead to it owning more than 10% of the share capital of the company.

The maximum purchase price paid by the company for treasury shares must not exceed eighty-five euros (€85) per share (excluding acquisition costs). In case of capital transactions, specifically through the incorporation of reserves and the allocation of free shares and/or the splitting or consolidation of shares, this price will be adjusted by a multiplier coefficient equal to the ratio between the number of shares comprising the share capital prior to the transaction and the same number after the transaction. Therefore, in the event of a change in the share par value, a capital increase through the incorporation of reserves, the allocation of free shares, the splitting or consolidation of shares, the distribution of reserves or any other assets, the amortisation of capital or any other transaction affecting shareholders' equity, the General Meeting resolves to delegate to the Board of Directors the authority to adjust the aforementioned maximum purchase price in order to take these transactions into consideration in the share value.

The maximum amount of funds reserved for the share buyback programme will be five hundred million euros (€500,000,000).

In compliance with the applicable legal and regulatory provisions, transactions relating to purchases, disposals, exchanges or transfers may be executed by any means, including by trading on a regulated market, a multilateral trading facility, systematic or over-the-counter internalisers, in particular through the acquisition or disposal of blocks (on the market or off-market), by way of takeover or exchange offer or through the use of financial instruments, in particular derivative financial instruments traded on a regulated market or over the counter, such as call or put options or any combination thereof, or through the use of warrants, either directly or indirectly through the intermediary of an investment services provider, under the conditions authorised by the competent market authorities, and at such times as the company's Board of Directors deems appropriate. The maximum portion of the share capital acquired or transferred in the form of blocks of shares may comprise up to the entire programme.

These transactions may take place at any time, subject to compliance with regulations in effect, unless a third party files a public offering for the shares of the company, until the end of the offer period.

This authorisation is intended to allow the company to pursue the following objectives, in compliance with the applicable legal and regulatory provisions:

―	to allocate shares to executive corporate officers or employees of the company and/or of companies belonging to its group, in accordance with the terms and conditions set out in the laws and regulations applicable to (i) the sharing in the benefits due to the company's growth, (ii) the stock-option scheme stipulated by Articles L. 225-177 et seq. of the French Commercial Code and its Article L. 22-10-56, (iii) the scheme for allocation of free shares as stipulated in Articles L. 225-197-1 et seq. of the French Commercial Code and L. 22-10-59 and L. 22-10-60 of the Commercial Code, and (iv) any employee savings plan, as well as to undertake any hedging transaction relating to these transactions, under the conditions stipulated by the market authorities and at such times as the Board of Directors or the individual acting on behalf of the Board of Directors deems suitable;
―	to deliver shares during the exercise of rights attached to transferable securities giving the right, immediately or in the future, through redemption, conversion, exchange, presentation of a warrant or any other manner, to the allocation of company shares, as well as to undertake any hedging transaction in relation to the issue of such securities, under the conditions stipulated by the market authorities and at such times as the Board of Directors or the individual acting on behalf of the Board of Directors deems suitable;
―	to hold the shares and deliver them later as payment or in exchange in the context of potential transactions for external growth, merger, split or contribution;
―	to cancel all or part of the shares through a reduction in the share capital (specifically in order to optimise cash management, return on equity or earnings per share), subject to this General Meeting adopting the twenty-first resolution below;
―	to facilitate the liquidity of transactions and consistency in the trading of the company's shares or to prevent price swings not justified by market trends within the framework of a liquidity agreement entered into with an investment services provider operating in complete independence, under the conditions and in accordance with the methods set by regulation and recognised market practice and consistent with a Code of Ethics recognised by the French Financial Markets Authority (Autorité des Marchés Financiers - AMF);
―	and also with a view to any other practice that could be recognised by the law or the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) or any other purpose to be authorised by the law or regulations in effect in future. In such a case, the company would inform its shareholders by sending out a notice.

This authorisation is given for eighteen (18) months as at the date of this General Meeting.

The General Meeting grants complete authority to the Board of Directors, which may further delegate such authority under the conditions stipulated by the applicable legal and regulatory provisions, for the purposes of implementing this authorisation, and specifically:

―	to place all orders on the securities exchange or over the counter;
―	to enter into any agreements specifically with a view to maintaining records on the purchase and sale of shares;
―	to prepare all documents, including those for information;
―	to allocate or reallocate the shares acquired to the various objectives pursued, under the applicable legal and regulatory conditions; and
―	to prepare any statements and execute any recording requirements of the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) or any other public authority and, in general, to take all necessary measures.

The General Meeting acknowledges that, in the event that the Board of Directors uses this authorisation, the Board of Directors must report on it pursuant to Article L. 225-100 of the French Commercial Code, in accordance with Article L. 225-211 of the French Commercial Code.

5.1.2.2 Extraordinary resolutions

TWENTIETH RESOLUTION

(Delegation of authority to the Board of Directors to increase the company's share capital through the incorporation of reserves, profits or premiums).

The General Meeting, ruling under the quorum and majority conditions required for Ordinary General Meetings, and having reviewed the report of the Board of Directors:

―	terminates, effective immediately, for the unused portion, the delegation given by the Combined General Meeting of 20 April 2023;
―	hereby fully authorises the Board of Directors, in accordance with the provisions of Articles L. 225-129, L. 225-129-2, L. 225-130 and L. 22-10-50 of the French Commercial Code, which may further delegate such authority, to decide to increase the company's share capital, on one or more occasions, in the proportions and at the times that it deems suitable, by incorporating all or part of the reserves, profits, premiums or any other sums that may be capitalised, to be executed through the issue of new free shares or an increase in the par value of the company shares or a combination of these two procedures;
―	notwithstanding the above, resolves that the Board of Directors may not, unless with the prior authorisation of the General Meeting, use this delegation of authority as of the date of the filing by a third party of a proposed public takeover offer for the company's shares, and until the end of the offer period;
―	resolves that the maximum nominal amount of the capital increases performed under this delegation, immediately or in the future, may not exceed a total of thirty million three hundred thousand euros (€30,300,000), plus, if applicable, the par value of the additional shares to be issued in order to protect the rights of the holders of transferable securities convertible into equity as required by legal, regulatory and contractual provisions. This amount is set independently and separately from the caps on share capital increases as a result of share and/or transferable securities issues authorised by the twenty-second to the twenty-seventh resolutions:
―	resolves that this delegation is valid for a period of twenty-six (26) months from the date of this General Meeting;
―	resolves that the rights forming fractional shares will be neither tradable nor transferable and that the corresponding shares will be sold; the sums resulting from the sale will be allocated to the holders of the rights as stipulated under the legislative and regulatory provisions applicable; and
―	resolves that the Board of Directors, which may further delegate such authority under the conditions stipulated by the legal and regulatory provisions, will have all powers to implement this delegation, specifically for the purposes of:

(i) determining the terms and conditions of the transactions authorised above, and more specifically, determining in this respect the amount of sums to be capitalised and the shareholders' equity account or accounts against which they will be drawn,

(ii) setting the amounts to be issued and the dividend entitlement date, applied retroactively or not, for the securities to be issued,

(iii) making any adjustments in order to take into account the impact of transactions on the company's share capital,

(iv) setting the terms and conditions under which the rights of holders of transferable securities providing access to the share capital will be maintained, as relevant, in accordance with the legal and regulatory provisions in force and the conditions stipulated in any contracts in force,

(v) performing, either on its own or through an agent, all acts and formalities to finalise any capital increases that may be carried out as authorised under this resolution, and

(vi) amending the Articles of Association accordingly and, in general, doing whatever is necessary.

TWENTY-FIRST RESOLUTION

(Authorisation to be granted to the Board of Directors to reduce the company's share capital through the cancellation of shares).

The General Meeting, ruling under the quorum and majority conditions required for Extraordinary General Meetings, having reviewed the Board of Directors' report and the Statutory Auditors' special report, and in accordance with the provisions of Article L. 22-10-62 of the French Commercial Code:

―	terminates, effective immediately, for the unused portion, the authorisation given by the Combined General Meeting of 20 April 2023;
―	authorises the Board of Directors, which may further delegate such authority, for a period of eighteen (18) months from the date of this General Meeting, to cancel, on one or more occasions and at times it deems fit, shares acquired by the company under the authority of the nineteenth resolution or any other resolution with the same purpose and same legal basis, within the limit of 10% of the company's share capital per period of twenty-four (24) months, and to reduce the share capital accordingly, on the understanding that this percentage applies to the capital following any adjustments to take into account the impact of transactions subsequent to this General Meeting; and
―	authorises the Board of Directors to allocate the difference between the purchase value of the cancelled shares and their par value to the "share premium" account or to any available reserves and premium account, including legal reserves, to a maximum of 10% of the realised capital reduction.

The General Meeting grants all authority to the Board of Directors, which may further delegate such authority under the conditions stipulated by applicable legal and regulatory provisions, to undertake this (these) transaction(s) involving share cancellations and capital reductions, specifically to set the final value of the capital reduction, setting the conditions and confirming its fulfilment and undertaking the corresponding amendment of the company's Articles of Association, to take any formal recording measures, to make any efforts and statements to any public entities and, in general, to do anything necessary.

TWENTY-SECOND RESOLUTION

(Delegation to the Board of Directors of the authority to issue shares and/or securities convertible into equity, maintaining the shareholders' preferential subscription right).

The General Meeting, ruling under the quorum and majority conditions required for Extraordinary General Meetings, having reviewed the Board of Directors' report and the Statutory Auditors' special report, and in accordance with the provisions of Articles L. 225-129 et seq., particularly Articles L. 225-129-2, L. 225-132 to L. 225-134 and the provisions of Articles L. 228-91 et seq. of the French Commercial Code:

―	terminates, effective immediately, for the unused portion, the delegation given by the Combined General Meeting of 20 April 2023;
―	delegates authority to the Board of Directors, which may further delegate said authority, for a period of twenty-six (26) months as from the date of this General Meeting, to decide, on one or more occasions, in the proportions and at the times it deems fit, both in France and abroad, on the issue, in euros or in foreign currency, maintaining the shareholders' preferential subscription rights, of company shares and/or transferable securities (including warrants to subscribe for new or existing shares), providing immediate or future access by any means to the company's share capital, whether issued free of charge or in return for payment. It is specified that this delegation may allow the issue of transferable securities under the conditions set forth by Article L. 228-93 of the French Commercial Code;
―	notwithstanding the above, resolves that the Board of Directors may not, unless with the prior authorisation of the General Meeting, use this delegation of authority as of the date of the filing by a third party of a proposed public takeover offer for the company's shares, and until the end of the offer period;
―	resolves that the maximum nominal amount of the share capital increases performed under this delegation, immediately or in the future, may not exceed a total of seventy-five million, seven hundred and fifty thousand euros (€75,750,000) plus, where applicable, the par value of any additional shares to be issued to protect the rights of the holders of transferable securities convertible into equity as required by applicable legal, regulatory and contractual provisions. This amount is set independently and separately from the caps on share capital increases as a result of share and/or transferable securities issues authorised by the twentieth resolution and by the twenty-third to the twenty-seventh resolutions; and
―	also resolves that the par value of debt securities convertible into equity immediately and/or in the future that may be issued under this delegation may not exceed a total of seven hundred and fifty million euros (€750,000,000) or the equivalent of this on the date of this issue decision in the case of an issue in foreign currency or in a unit of account set by reference to several currencies. Please note that the nominal amount of the debt securities convertible into equity immediately and/or in the future issued under this delegation and the twenty-third to the twenty-fifth resolutions, may not exceed a total of seven hundred and fifty million euros (€750,000,000), the overall cap for all debt securities. This amount is independent of the amount of the debt securities for which issue was decided or authorised by the Board of Directors in accordance with Article L. 228-40 of the French Commercial Code.

Shares or transferable securities convertible into equity may be subscribed for either in cash or by offsetting receivables against the company.

Shareholders have a preferential right, in proportion to the value of their shares, to subscribe the shares and securities issued under this resolution. The Board of Directors may establish, for shareholders, a subscription right on a reducible basis for the shares or transferable securities issued, which will be issued in proportion to their subscription rights and up to the maximum of their orders.

Consequently, if subscriptions on an irreducible basis and, where applicable, on a reducible basis, have not absorbed the entire issue of shares or transferable securities as defined above, the Board of Directors may use all or some of the options below in the order it deems appropriate:

―	to restrict the issue to the amount of subscriptions, it being specified that in the event of a share issue, this limit may only be applied by the Board of Directors on condition that the subscriptions amount to at least three quarters (3/4) of the issue decided;
―	to freely distribute all or part of any securities not subscribed on an irreducible basis and, where relevant, on a reducible basis; and
―	to offer to the public all or part of the non-subscribed shares on the French and/or international markets and/or abroad.

The General Meeting acknowledges that the authorisation implies, as applicable, in favour of the holders of such transferable securities convertible into equity as may be issued under this delegation, waiver ipso jure by the shareholders of their preferential subscription right to shares in connection with such transferable securities.

The General Meeting resolves that the company's stock warrants may be issued by subscription offer, as well as by free allocations to owners of old shares, and that, in the event of a free allocation of stock warrants, the Board of Directors will be entitled to resolve that fractional allocation rights will not be negotiable and that the corresponding securities must be sold.

The General Meeting grants all powers to the Board of Directors to implement this delegation, with a right of sub-delegation, under the conditions stipulated by the legal and regulatory provisions, specifically for the purposes of:

―	determining the dates, prices and other conditions of the issues as well as the form and features of the transferable securities to be created;
―	setting the amounts to be issued and the dividend entitlement date, applied retroactively or not, for the securities to be issued;
―	determining the method of release for the shares or other securities issued and, if applicable, the conditions for their purchase or exchange;
―	suspending, if applicable, the exercise of the share allocation rights attached to the transferable securities to be issued, for a period no longer than three (3) months;
―	setting the terms and conditions under which the rights of holders of transferable securities convertible into equity will be maintained, as relevant, in accordance with the legal and regulatory provisions in force and the conditions of any applicable contracts providing for other adjustments;
―	charging any amounts against the share premium as required, in particular the fees triggered by the issue, to deduct from this amount the necessary amounts corresponding to 10% of the nominal value of each issue to allocate to the legal reserve after each increase;
―	undertaking any formalities required for the listing for trading on a regulated market in France or abroad, of the rights, shares or transferable securities issued, and providing financial services for the securities in question and exercise of the corresponding rights;
―	deciding, in the event of an issue of transferable securities representing debt securities convertible into equity, subject to the conditions defined by law, whether or not they are subordinated, setting the interest rate and the currency, the maturity, which may be perpetual if applicable, the fixed or variable redemption price with or without premium, the conditions for amortisation based on market conditions, and the conditions under which these securities will be convertible into shares of the company and the other conditions for issue (including the act of granting guarantees or securities) and amortisation; and
―	in general, taking any measure that may be required, entering into any agreements, requesting any authorisations, performing any formalities and doing whatever is necessary to ensure the successful outcome of the issues planned, or to postpone them, and specifically recording the capital increases resulting from any issue performed through the use of this delegation, and amending the company's Articles of Association accordingly.

TWENTY-THIRD RESOLUTION

(Delegation of authority to the Board of Directors to issue, through public offering, company shares and/or securities convertible into equity, with waiver of shareholders' preferential subscription rights and a mandatory priority period for share issues).

The General Meeting, ruling under the quorum and majority conditions required for Extraordinary General Meetings, having reviewed the Board of Directors' report and the Statutory Auditors' special report, and in accordance with the provisions of Articles L. 225-129 et seq., particularly Articles L. 225-129-2, L. 225-135, and the provisions of Articles L. 22-10-51, L. 225-136, L. 22-10-52 and L. 228-91 et seq. of the French Commercial Code:

―	terminates, effective immediately, for the unused portion, the delegation given by the Combined General Meeting of 20 April 2023;
―	delegates to the Board of Directors, which may further delegate such authority, for a period of twenty-six (26) months as from the date of this General Meeting, the power to decide, on one or more occasions, in the proportions and at the times it deems fit, on the issue of company shares and/or transferable securities convertible into equity immediately or in the future, through public offering, (including the offerings covered by paragraph 1, Article L. 411-2 of the Monetary and Financial Code), in France or abroad, in euros or in foreign currency, with waiver of shareholders' preferential subscription rights. It is specified that this delegation of authority may allow for the issue of transferable securities under the conditions set forth by Article L. 228-93 of the French Commercial Code;
―	notwithstanding the above, resolves that the Board of Directors may not, unless with the prior authorisation of the General Meeting, use this delegation of authority as of the date of the filing by a third party of a proposed public takeover offer for the company's shares, and until the end of the offer period;
―	resolves that the maximum nominal value of increases in the company's share capital that might be made immediately or in the future, by virtue of the present delegation, may not exceed thirty million three hundred thousand euros (€30,300,000), on the understanding that (i) the maximum nominal value of any capital increase that might be made immediately or in the future, by virtue of the present delegation with no priority period having been allocated to benefit shareholders, will be charged to the applicable cap amount for share capital increases as a result of shares and/ or transferable securities issues authorised by the twenty-fourth and twenty-fifth resolutions, and (ii) in all other cases, this amount is set independently and separately from the caps on share capital increases as a result of share and/ or transferable securities issues authorised by the twentieth, twenty-second, and twenty-fourth to twenty-seventh resolutions. Added to this cap, as necessary, will be the additional par value of the shares or other equity instruments to be issued, in accordance with the applicable legal and regulatory provisions and any applicable contractual stipulations providing for other cases of adjustment, to preserve the rights of holders of transferable securities representing receivables convertible into equity; and
―	resolves that the par value of debt securities giving immediate and/or future access to the company's capital, issued under this delegation, may not exceed a total of seven hundred and fifty million euros (€750,000,000), the overall cap for debt securities stipulated herein and in the twenty-second, twenty-fourth and twenty-fifth resolutions, or the equivalent of this amount on the date of the issue decision in the event of issue in foreign currency or in a unit of account set by reference to several currencies. This amount is independent of the amount of the debt securities for which issue was decided or authorised by the Board of Directors in accordance with Article L. 228-40 of the French Commercial Code.

Issuances decided under this delegation will be completed through public offering.

This delegation of authority expressly excludes the issue of preference shares or marketable securities providing access by any means to preference shares either immediately or in the future.

Shares or transferable securities convertible into equity may be subscribed for either in cash or by offsetting receivables against the company.

The General Meeting resolves:

―	to cancel the shareholders' preferential subscription right to the shares and/or transferable securities issued under this delegation;
―	to plan for a mandatory priority period of three (3) trading days minimum to the benefit of shareholders, in accordance with Articles L. 22-10-51 and R. 225-131 of the French Commercial Code, applying to all issues of shares performed within the scope of the present resolution; and
―	to delegate to the Board of Directors the ability to confer such a priority period for issues of transferable securities other than shares performed within the scope of the present resolution.

A priority subscription period that does not lead to the creation of negotiable rights must be exercised in proportion to the portion of equity owned by each shareholder and could potentially be topped up by a subscription on a reducible basis, on the understanding that unsubscribed shares will be sold to public investors in France or, where applicable, offered for investment abroad.

In accordance with Article L. 22-10-52 of the French Commercial Code, the General Meeting resolves that:

―

the issue price of the shares will be at least equal to the minimum amount authorised by the laws and regulations in force at the time of use of this delegation (i.e. for information purposes on the date of this General Meeting, at a price at least equal to the weighted average price of the last three trading sessions of the Covivio share on Euronext Paris preceding the start of the public offering within the meaning of Regulation (EU) 2017/1129 of 14 June 2017, possibly reduced by a maximum discount of 10%); and

―

the issue price of transferable securities convertible into equity (whether immediately or in the future), issued under this delegation will be such that the sum immediately received by the company, plus any amount it might receive subsequently, for each share or other equity security issued as a consequence of the issue of these transferable securities, will be at least equal to the minimum subscription price defined in the previous paragraph, after adjustment, if any, of that amount to cover any difference in dividend eligibility dates.

If subscriptions have not absorbed the entire issue of shares or other transferable securities as defined above, the Board of Directors may use all or some of the options below, as it deems fit, and in the order it deems appropriate:

―	limit the issue to the amount subscribed, provided that this is equal to at least three quarters (3/4) of the agreed value of the issue;
―	freely distribute all or part of the unsubscribed securities; and
―	offer all or part of the unsubscribed securities to the public.

The General Meeting acknowledges that the authorisation implies waiver ipso jure by the holders of any transferable securities convertible into equity issued under this delegation of their preferential subscription right to shares in connection with such transferable securities.

The General Meeting grants all powers to the Board of Directors to implement this delegation, with a right of sub-delegation, under the conditions stipulated by the legal and regulatory provisions, specifically for the purposes of:

―	determining the dates and conditions of the issues as well as the features of the transferable securities and shares to be created or associated with them;
―	setting the number of shares and/or other transferable securities to be issued, as well as their terms and conditions, in particular their issue price and, as applicable, the amount of the premium;
―	determining the payment method for the shares and/or securities issued;
―	determining the terms of payment for the shares and/or other securities issued setting the dividend entitlement date, with or without retroactive effect, of the securities to be issued and, as applicable, the conditions for their buyback or exchange
―	suspending, as applicable, exercise of the rights attached to the securities for a period no longer than three (3) months under the limits stipulated by the applicable legal and regulatory provisions;
―	setting the conditions to ensure preservation of the rights of holders of transferable securities or other instruments providing access to the share capital, in accordance with applicable legal and regulatory provisions and, as necessary, the applicable contractual stipulations providing for other adjustments;
―	charging any amounts against the share premium as required, in particular the fees triggered by the issue, to deduct from this amount the necessary amounts corresponding to 10% of the nominal value of each issue to allocate to the legal reserve after each increase;
―	undertaking any formalities required for the listing for trading on a regulated market in France or abroad, of the rights, shares or transferable securities issued, and providing financial services for the securities in question and exercising the corresponding rights;
―	deciding, in the event of the issue of transferable debt securities convertible into equity as stipulated under French law, whether these securities should be subordinated or not (and setting their subordination rank where applicable), setting their interest rate, currency, maturity (which may be perpetual), their fixed or variable redemption price (with or without premium), amortisation conditions based on market conditions, conditions under which these securities will entitle holders to company shares, and other conditions concerning their issue (including the act of granting guarantees or securities) and amortisation; and
―	in general, taking any measure that may be required, entering into any agreements, requesting any authorisations, performing any formalities and doing whatever is necessary to ensure the successful outcome of the issues planned, or to postpone them, and specifically recording the capital increases resulting from any issue performed through the use of this delegation, and amending the company's Articles of Association accordingly.

TWENTY-FOURTH RESOLUTION

(Delegation of authority to the Board of Directors to issue shares and/or securities convertible into equity, with waiver of shareholders' preferential subscription rights, in the event of a public exchange offer initiated by the company).

The General Meeting, ruling under the quorum and majority conditions required for Extraordinary General Meetings, having reviewed the Board of Directors' report and the Statutory Auditors' special report, and in accordance with the provisions of Articles L. 225-129 et seq., L. 22-10-54 and L. 228-91 et seq. of the French Commercial Code:

―	terminates, effective immediately, for the unused portion, the delegation given by the Combined General Meeting of 20 April 2023;
―	delegates to the Board of Directors, which may further delegate such authority, for a period of twenty-six (26) months as from the date of this General Meeting, the power to decide, on one or more occasions, in the proportions and at the times it deems fit, on the issue of company shares and/or transferable securities convertible into equity, immediately or in the future, and by any means, through a public exchange offering launched by the company, in France or (depending on local criteria and regulations) abroad, for shares of another company whose securities are admitted to trading on a regulated market pursuant to Article L. 22-10-54 of the French Commercial Code;
―	resolves that this delegation is distinct and autonomous from the delegation provided for in the twenty-sixth resolution below, relating to the delegation of authority granted to the Board of Directors to carry out the public exchange offer to be implemented by the company in consequence of the contribution to the company of Covivio Hotels shares in accordance with the transactions described in the company's market press release dated 22 February 2024, and that, as a result, this delegation does not invalidate the delegation provided for in the twenty-sixth resolution and vice versa;
―	notwithstanding the above, resolves that the Board of Directors may not, unless with the prior authorisation of the General Meeting, use this delegation of authority as of the date of the filing by a third party of a proposed public takeover offer for the company's shares, and until the end of the offer period;
―	resolves to waive, as required, the shareholders' preferential subscription right to the shares and/or transferable securities issued under this delegation;
―	acknowledges that the authorisation implies waiver ipso jure by the holders of any transferable securities convertible into equity issued under this delegation of their preferential subscription right to shares in connection with such transferable securities;
―	resolves that the maximum nominal value of increases in the company's share capital made immediately or in the future under this delegation may not exceed 10% of its share capital (corresponding to its amount on the date of use of this delegation by the Board of Directors). It is specified that the maximum overall nominal value of increases in the company's share capital that might be made under the present delegation and of that conferred under the twenty-fifth resolution may not exceed 10% of the share capital of the company, with an overall cap on all capital increases that might be made immediately or in the future stipulated in the present resolution, the twenty-fifth resolution and, with regard to issues performed without a priority period being conferred to benefit shareholders, the twenty-third resolution; and
―	resolves that the par value of debt securities giving immediate and/or future access to the company's capital, issued under this delegation, may not exceed a total of seven hundred and fifty million euros (€750,000,000), the overall cap for debt securities stipulated herein and in the twenty-second, twenty-third and the twenty-fifth resolutions, or the equivalent of this amount on the date of the issue decision in the event of issue in foreign currency or in a unit of account set by reference to several currencies. This amount is independent of the amount of the debt securities for which issue was decided or authorised by the Board of Directors in accordance with Article L. 228-40 of the French Commercial Code.

The General Meeting grants all powers to the Board of Directors to implement this delegation, with a right of sub-delegation, under the conditions stipulated by the legal and regulatory provisions, specifically for the purposes of:

―	defining the terms, conditions and details of the transaction, within the limits set by this resolution and applicable legal and regulatory provisions;
―	determining the exchange ratio as well as any amount payable in cash;
―	recording the number of shares tendered to the exchange;
―	determining the dates and issue conditions, in particular the price of the shares to be issued and their dividend entitlement date (possibly retroactive), or where applicable, the dates and issue conditions of transferable securities convertible, now or in future, into company shares to be issued;
―	taking all required measures to protect the rights of holders of transferable securities or other instruments providing access to the share capital, in accordance with applicable legal and regulatory provisions and any contractual stipulations providing for other adjustments;
―	recording the difference between the issue price of the new shares and their par value in the "Liabilities" section of the balance sheet under an "Additional paid-in capital" account which will cover the rights of all shareholders;
―	at its sole initiative, charging the fees for any issue to the amount of the "Additional paid-in capital" and deducting from this amount the necessary amounts corresponding to 10% of the nominal value of each issue to allocate to the legal reserve after each increase;
―	performing all required formalities for the rights and shares issued to be listed on a regulated market in France or abroad, providing financial services of the transferable securities in question and ensuring the exercise of their attached rights; and
―	in general, taking any measure that may be required, entering into any agreements, requesting any authorisations, performing any formalities and doing whatever is necessary to ensure the successful outcome of the issues planned, or to postpone them, and specifically recording the capital increases resulting from any issue performed through the use of this delegation, and amending the company's Articles of Association accordingly.

TWENTY-FIFTH RESOLUTION

(Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, to pay for the contributions in kind granted to the company consisting of capital shares or transferable securities convertible into equity).

The General Meeting, ruling under the quorum and majority conditions required for Extraordinary General Meetings, having reviewed the Board of Directors' report and the Statutory Auditors' special report, and in accordance with the provisions of Articles L. 225-129 et seq. of the French Commercial Code, in particular Article L. 225-147, as well as Article L. 22-10-53 of said Code:

―	terminates, with effect from 1 May 2024, for the unused portion, the delegation granted by the Combined General Meeting of 20 April 2023, this delegation remaining fully usable until that date with a view in particular to remunerating and to contributing to the company twelve million three hundred and sixteen thousand four hundred and forty-five (12,316,445) shares of Covivio Hotels decided in principle by the Board of Directors on 15 February 2024;
―	delegates to the Board of Directors, which may further delegate such authority, for a period of twenty-six (26) months as from 1 May 2024, the power to decide, based on the report of the contribution auditor(s) (commissaire aux apports) mentioned in paragraphs 1 and 2 of Article L. 225-147 of the French Commercial Code, on the issue of existing or new company shares and/or transferable securities convertible into equity, immediately or in the future and by any means, pursuant to Articles L. 228-91 et seq. of the French Commercial Code, to pay for contributions in kind granted to the company consisting of capital shares or transferable securities convertible into equity, when the provisions of Article L. 22-10-54 of the French Commercial Code do not apply;
―	notwithstanding the above, resolves that the Board of Directors may not, unless with the prior authorisation of the General Meeting, use this delegation of authority as of the date of the filing by a third party of a proposed public takeover offer for the company's shares, and until the end of the offer period;
―	resolves that the maximum nominal value of increases in the company's share capital that might be made immediately or in the future under the present delegation may not exceed 10% of the share capital of the company (corresponding to its amount on the date of use of this delegation by the Board of Directors), with the overall cap for share capital increases that might be made immediately or in the future stipulated in the present resolution, the twenty-fourth resolution and, with regard to issues performed without a priority period being conferred to benefit shareholders, the twenty-third resolution;
―	resolves that the par value of debt securities giving immediate and/or future access to the company's capital, issued under this delegation, may not exceed a total of seven hundred and fifty million euros (€750,000,000), the overall cap for debt securities stipulated herein and in the twenty-second to twenty-fourth resolutions, or the equivalent of this amount on the date of the issue decision in the event of issue in foreign currency or in a unit of account set by reference to several currencies. This amount is independent of the amount of the debt securities for which issue was decided or authorised by the Board of Directors in accordance with Article L. 228-40 of the French Commercial Code;
―	notes the absence of a preferential subscription right of shareholders to the shares and/or transferable securities issued under this delegation, as their purpose is solely to compensate contributions in kind; and
―	acknowledges that the authorisation implies waiver ipso jure by the holders of any transferable securities convertible into equity issued under this delegation of their preferential subscription right to shares in connection with such transferable securities.

The General Meeting grants all powers to the Board of Directors to implement this delegation, with a right of sub-delegation, under the conditions stipulated by applicable legal and regulatory provisions, specifically for the purposes of:

―	ruling on the report of the contribution auditor(s) regarding the capital contributions;
―	defining the terms, conditions and details of the transaction, within the limits set by this resolution and applicable legal and regulatory provisions;
―	determining the exchange ratio as well as any amount payable in cash;
―	recording the number of securities issued in remuneration for the contributions in kind;
―	determining the dates and issue conditions, in particular the price and the entitlement date (even retroactive) of the new shares or other equity securities and, if relevant, the transferable securities providing immediate or future access to the company's share capital, evaluating the contributions and any special benefits that may be granted, and reducing the valuation of the contributions and any special benefits if agreed by the tenderers;
―	recording the difference between the issue price of the new shares and their par value in the "Liabilities" section of the balance sheet under an "Additional paid-in capital" account which will cover the rights of all shareholders;
―	at its sole initiative, charging the fees for any issue to the amount of the "Additional paid-in capital" and deducting from this amount the necessary amounts corresponding to 10% of the nominal value of each issue to allocate to the legal reserve after each increase; and
―	generally taking all necessary steps, entering into all agreements (in particular to ensure the successful completion of the issue), requesting all authorisations, carrying out all formalities and doing whatever is necessary to successfully complete the planned issues or postpone them, and in particular recording the capital increase(s) resulting from any issue carried out by the use of this delegation, amending the company's Articles of Association accordingly, requesting listing on a regulated market in France or abroad of the rights, shares or other transferable securities issued pursuant to this delegation and ensuring the financial service for the securities concerned and the exercise of the rights attached thereto.

TWENTY-SIXTH RESOLUTION

(Delegation of authority to the Board of Directors to issue company shares as part of the public exchange offer initiated by the company for the shares issued by Covivio Hotels).

The General Meeting, ruling under the quorum and majority conditions required for Extraordinary General Meetings, having reviewed the Board of Directors' report and the Statutory Auditors' special report, and in accordance with the provisions of Articles L. 225-129 et seq., and L. 22-10-54 of the French Commercial Code:

―	delegates to the Board of Directors, with the option of subdelegation, the authority to decide, in the proportions and at the times it deems appropriate, on one or more occasions, for a period of twelve (12) months from the date of this General Meeting, the issue of company shares in consideration for the shares contributed to the public exchange offer planned to be initiated by the company for the shares of Covivio Hotels, a partnership limited by shares with share capital of €592,565,808 whose registered office is located at 10 rue de Madrid in Paris (75008), registered in the Paris Trade and Companies Register under number 955 515 895 in accordance with the transactions described in the company's market press release dated 22 February 2024 (the "Offer");
―	resolves, as necessary, to cancel shareholders' preferential subscription rights to these shares to be issued by the company as part of the Offer;
―	resolves that the maximum nominal amount of the company's capital increases that may be carried out, immediately or in the future, under this delegation may not exceed seventy million euros (€70,000,000). Added to this cap, as necessary, will be the additional par value of the shares or other equity securities to be issued, in accordance with the applicable legal and regulatory provisions and any applicable contractual provisions providing for other cases of adjustment, to preserve the rights of holders of transferable securities or the holders of other rights representing receivables convertible into equity;
―	resolves that the maximum overall nominal value of increases in the company's share capital that might be made under the present delegation is independent and distinct from that conferred under the twenty-fourth resolution and will not be allocated to the overall cap on all capital increases that might be made immediately or in the future stipulated in the twenty-fifth resolution and, with regard to issues performed without a priority period being conferred to benefit shareholders, the twenty-third resolution; and
―	acknowledges that this delegation does not invalidate the delegation granted by this General Meeting under the twenty-fourth resolution.

The General Meeting grants all powers to the Board of Directors to implement this delegation, with a right of sub-delegation, under the conditions stipulated by the legal and regulatory provisions, specifically for the purposes of:

―	defining the terms, conditions and details of the Offer, within the limits set by this resolution and applicable legal and regulatory provisions;
―	determining the exchange ratio as well as any amount payable in cash;
―	recording the number of shares tendered to the Offer;
―	determine the dates and conditions of issue, in particular the price and the dividend date (even retroactive), of the company's shares or other equity securities;
―	suspending, as applicable, exercise of the rights attached to the securities for a period no longer than three (3) months under the limits stipulated by the applicable legal and regulatory provisions;
―	recording the difference between the issue price of the new shares and their par value in the "Liabilities" section of the balance sheet under an "Additional paid-in capital" account which will cover the rights of all shareholders;
―	at its sole initiative, charge the costs of any issue to the amount of the "Additional paid-in capital" and deduct from this premium the sums necessary to increase the legal reserve to one-tenth of the new share capital after each increase;
―	carry out all formalities required for the admission to trading on a regulated market in France or abroad of the rights, shares or securities issued, and record the capital increase(s) resulting from any issue carried out through the use of this delegation and ensure the financial servicing of the securities concerned and the exercise of the rights attached thereto; and
―	in general, taking any measure that may be required, entering into any agreements, requesting any authorisations, performing any formalities and doing whatever is necessary to ensure the successful outcome of the issues planned, or to postpone them, and specifically recording the capital increases resulting from any issue performed through the use of this delegation, and amending the company's Articles of Association accordingly.

TWENTY-SEVENTH RESOLUTION

(Delegation of authority to the Board of Directors to undertake capital increases reserved for employees of the company and companies in the Covivio group that are members of a company savings plan, with waiver of shareholders' preferential subscription right).

The General Meeting, ruling under the quorum and majority conditions required for Extraordinary General Meetings, having reviewed the Board of Directors' report and the Statutory Auditors' special report, to enable a capital increase to take place, reserved for employees belonging to a company savings plan at a level that remains consistent with the amount of the share capital, and in accordance with the provisions of Articles L. 225-129-2, L. 225-129-6, L. 225-138 et seq. of the French Commercial Code, and L. 3331-1 et seq. of the French Labour Code:

―	terminates, effective immediately, for the unused portion, the delegation given by the Combined General Meeting of 20 April 2023;
―	delegates to the Board of Directors, which may further delegate such authority, the authority to decide, on one or more occasions, in the proportions and at the times it deems appropriate, for twenty-six (26) months as from this General Meeting, the issue of shares and/or transferable securities convertible into equity, up to a maximum par value of five hundred thousand euros (€500,000) reserved for participants in a company or Group savings scheme provided by the company and by the companies and economic interest groups associated with the company, under the conditions set out in Article L. 225-180 of the French Commercial Code and Article L. 3344-1 of the French Labour Code. This amount is set independently and separately from the caps on share capital increases as a result of share and/or transferable securities issues authorised by the twentieth, and twenty-second to twenty-sixth resolutions;
―	resolves to cancel, in favour of said participants, the preferential right of shareholders to subscribe for shares and/ or transferable securities convertible into equity issued pursuant to this delegation;
―	resolves, in accordance with Articles L. 3332-18 to L. 3332-24 of the French Labour Code, that the discount offered may not exceed 30% of the average most recent prices listed for the company's shares over the twenty trading days prior to the subscription opening date, and 40% of the same average when the expected holding period under the plan is ten years or more; however, the General Meeting explicitly authorises the Board of Directors to cancel or reduce the aforementioned discount, if it deems this appropriate, in response, inter alia, to local legal, accounting, financial and social security regimes. The Board of Directors may also replace all or part of the discount through the allocation of shares or other securities pursuant to the aforementioned provisions; and
―	resolves that the Board of Directors may stipulate the allocation of free shares or marketable transferable securities convertible into equity (other than preferred stock), on the understanding that the total benefit resulting from this allocation for the contribution or, where applicable, discount from the subscription price may not exceed the legal and regulatory limits, and the company's shareholders waive all rights to any securities that may be issued free of charge pursuant to this resolution.

The General Meeting grants all powers to the Board of Directors to implement this delegation, with a right of sub-delegation, under the conditions stipulated by applicable legal and regulatory provisions, specifically for the purposes of:

―	determining, within the above-mentioned limits, the features, amount and conditions for any issue;
―	determining that the issues or allocations may be made directly to the beneficiaries or through an intermediate collective body;
―	conducting the capital increases resulting from this delegation, up to the cap set above;
―	setting the subscription price of the shares in cash pursuant to legal provisions;
―	stipulating, as needed, the establishment of a Group savings plan or the modification of existing plans;
―	determining the list of the companies whose employees will be the beneficiaries of the issues conducted under this delegation, setting the period for payment of the shares and, as applicable, the seniority required for employees to participate in the operations, within the legal limits;
―	making all adjustments in order to take into account the impact of transactions on the company's share capital, particularly in the case of a change in the par value of the share, a capital increase through capitalisation of reserves, a free allocation of shares, a stock split or reverse split, a distribution of reserves or any other assets, the amortisation of capital or any other transaction involving shareholders' equity;
―	as required, charging the fees incurred by the share capital increases to the amount of the related premiums and deducting from these amounts the necessary amounts corresponding to 10% of the nominal value of each issue for the legal reserve after each increase;
―	undertaking any formalities necessary for the listing for trading on a regulated market in France or abroad of the rights, shares or transferable securities issued, and ensuring the financial servicing of the securities issued under this delegation and the exercise of the corresponding rights;
―	performing, either on its own or through an agent, all acts and formalities to finalise any capital increases that may be carried out as authorised under this resolution; and
―	amending the Articles of Association accordingly and, in general, doing whatever is necessary.

TWENTY-EIGHTH RESOLUTION

(Modification of Article 3 [Object and purpose] of the company's Articles of Association).

The General Meeting, ruling under the quorum and majority conditions required for Extraordinary General Meetings, having reviewed the Board of Directors' report, resolves to amend Article 3 of the Articles of Association in order to include Covivio's Purpose in addition to its objects clause and extend the activity carried out on an ancillary basis to insurance brokerage activities exclusively on behalf of Covivio group companies.

Therefore, Article 3 of the Articles of Association now reads as follows:

"Article 3. - Object and purpose

3.1 Covivio's Purpose, both in France and abroad, for itself or in partnership with third parties, involves:

―

Primarily:

―	the acquisition of any land, real estate rights or assets, through purchase, exchange, contribution in kind or else including through construction leases, emphyteutic leases, authorisations for temporary occupancy of public property and finance leases, as well as all assets and rights that may be accessory or attached to the said real estate properties,
―	the construction of assets, and any transactions directly or indirectly related to the construction of such assets,
―	the operation and creation of value of such real estate properties through rental,
―	directly or indirectly, the holding of equity investments in entities stipulated in Article 8 and paragraphs 1, 2 and 3 of Article 206 of the French General Tax Code and, in general, the acquisition of shareholdings through contribution, subscription, purchase or exchange of shares or voting rights or else in companies whose primary purpose is the operation of rental real estate portfolio, and the promotion, management and assistance of such entities and companies;

―

Secondarily and directly or indirectly:

―	the leasing of all real estate properties,
―	the acquisition, including through concession, of temporary authorisation to occupy public property and the operation of parking facilities,
―	the management, administration, negotiation and sale of real estate rights and assets for the account of third parties and of direct and indirect subsidiaries, allocated to the exploitation of industrial and commercial companies in the rental subsector of commercial properties (offices, shops and logistics properties) and secondarily in the housing sector,
―	the provision and marketing of new collaborative and intelligent workspaces, or more generally workspaces, open and/or closed office spaces, lounges, meeting rooms or conference rooms, furnished or equipped business centres, archiving premises and car parks,
―	the acquisition, holding, disposal and business management in the tourism, leisure and accommodation sector in the broad sense,
―	on behalf of all direct and indirect subsidiaries, for all insurance and reinsurance intermediation activities relating to the placement and management of insurance contracts of all kinds, recourse and litigation, in particular as an insurance agent and insurance and reinsurance broker, and all services in the areas of advice, prevention, risk studies and assistance in the field of insurance and reinsurance,
―	the promotion, management and assistance of all direct and indirect subsidiaries;

―

In exceptional circumstances, the transfer, through sale, contribution, exchange or merger, of the assets of the company;

―

And more generally:

―	the participation as borrower and lender in any intra-group loan or cash transactions and the possibility of granting for this purpose any personal guarantees or security interests in real or personal property, whether mortgages or other borrowings,
―	and all civil, financial, commercial, industrial, personal and real property transactions deemed useful for the development of any one of the aforementioned purposes of the company.

3.2 The purpose of the company is to "build well-being and lasting relationships". The company also intends to generate a significant positive social, societal and environmental impact in the conduct of its activities.

As part of this approach, the Board of Directors and Executive Management undertake to take into consideration (i) the social, societal and environmental consequences of their decisions on all of the company's stakeholders, and (ii) the consequences of their decisions on the environment."

TWENTY-NINTH RESOLUTION

(Powers for formalities).

The General Meeting, ruling under the quorum and majority conditions required by law, grants complete authority to the bearer of an original, a copy or an extract of these minutes recording its resolutions, in order to fulfil all legal or administrative requirements and to undertake any filings or notifications required by current law.

5.2 Report of the Board of Directors on the text of the draft resolutions presented to the Combined General Meeting of 17 April 2024

Ladies and Gentlemen,

We have convened a Combined General Meeting for the purpose of submitting 29 draft resolutions to you. The purpose of this report is to provide comments on these drafts, the complete text of which will later be sent to you in the company's Universal Registration Document that will be submitted to the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) and made available to you in accordance with the legal and regulatory requirements.

5.2.1 Ordinary resolutions

Resolutions 1 to 19 fall within the scope of the Ordinary General Meeting.

5.2.1.1 Approval of corporate and consolidated financial statements, allocation of net income, distribution of a dividend and option to pay the dividend in shares (Resolutions 1, 2, 3 and 4)

The 1 ^st and 2 ^nd draft resolutions concern approval of consolidated and parent company's financial statements for the fiscal year ended 31 December 2023, approved by the Board of Directors on 15 February 2024, in accordance with the provisions of Article L. 232-1 of the French Commercial Code. The consolidated and parent company's financial statements, which appear in the Universal Registration Document, show respectively a loss of €8,417,361.56 and net income, Group Share of -€1,418,785k.

Under Resolution 3, you are hereby called upon to approve the allocation of the income for the 2023 fiscal year and to make a dividend distribution of €3.30 per share. On the basis of the total number of shares comprising the share capital on 15 February 2024, i.e. 101,006,389 shares, a total dividend of €333,321,083.70 will be allocated.

Resolution 4 offers you the choice of receiving the entire dividend either in cash or in new shares.

The issue price of the new shares, which may not be below the par value of the shares, will be equal to 90% of the average for shares listed at the closure of the previous twenty sessions of the stock market preceding the date of the General Meeting, less the amount of the net dividend of €3.30. This price will be rounded to the next highest eurocent.

The option should be exercised between Tuesday 23 April 2024 and Tuesday 7 May 2024 inclusive, with the specification that, given the technical order constraints on performing orders, the choice of shareholders with directly registered shares to receive payment of the dividend in shares must be received no later than Friday 3 May 2024 for responses sent via post and Monday 6 May 2024 (5:30 p.m.) for those sent via Sharinbox, the website provided by Société Générale that can be accessed at www.sharinbox.societegenerale.com. Beyond these dates, or in the case that no choice is made, the dividend will be paid entirely in cash. Shares thus issued as payment of the dividend will bear current rights and grant rights, upon their issue, to all subsequent distributions.

With regard to taxation, shareholders who have exercised the option to receive the dividend in shares will be taxed in accordance with the same conditions as those for a payment in cash.

The dividend for the 2023 fiscal year will be ex-dividend on Friday 19 April 2024. Payment of the dividend in cash and the delivery-payment of new shares will take place on Monday 27 May 2024.

5.2.1.2 Approval of the agreements referred to in Articles L. 225-38 et seq. of the French Commercial Code (Resolution 5)

The purpose of Resolution 5 is to approve (i) the Statutory Auditors' special report on the agreements described in Article L. 225-38 et seq. of the French Commercial Code, as well as (ii) the related-party agreements entered into or executed by the company during the fiscal year ended 31 December 2023. For more information, please refer to the Statutory Auditors' special report on related-party agreements, set out in Section 5.4 of the Universal Registration Document.

The only regulated agreement entered into during the fiscal year ended 31 December 2023 is detailed below. Their main terms and conditions are published, in accordance with Articles L. 22-10-13 and R. 22-10-17 of the French Commercial Code, on the Covivio website in the section dedicated to the General Meeting.

Shareholders' agreement signed on 21 March 2023 between Covivio and Assurances du Crédit Mutuel Vie SA, in the presence of Hotel N2

This regulated agreement is part of the Stream Building mixed transaction for the development of a real estate complex for use as shops, offices, hotel residences, events space and a rooftop, located in the ZAC Clichy-Batignolles in Paris 17 ^th.

The main purpose of the shareholders' agreement is to govern the relations of the shareholders of Hotel N2, the owner of the hotel business managed by Zoku.

The conclusion of the shareholders' agreement was authorised by the Board of Directors on 21 February 2023, which considered that it allows the continuation of this strategic project for Covivio, in particular in terms of value creation potential.

In view of the Directorship of Assurances du Crédit Mutuel Vie SA on the Board of Directors of Covivio, it should be approved in accordance with Article L. 225-38 of the French Commercial Code.

5.2.1.3 Approval of the information referred to in Article L. 22-10-9, I of the French Commercial Code relating to the remuneration paid during the yearended 31 December 2023 or awarded to corporate officers for the same fiscal year (Resolution 6)

Pursuant to Article L. 22-10-34, I of the French Commercial Code, the Board of Directors proposes that by voting on Resolution 6, you are called on to approve the information referred to in Article L. 22-10-9, I of the French Commercial Code related to remuneration of all corporate officers, including that of the corporate officers whose mandates ended and those newly appointed during the fiscal year ended ("global" ex-post Say on Pay), detailed in the Board of Directors' report on corporate governance in Section 5.3.4.2 of the Universal Registration Document.

5.2.1.4 Approval of the individual remuneration paid during the year for the fiscal year ended 31 December 2023 or awarded to corporate officers for the same fiscal year (Resolutions 7, 8, and 9)

Pursuant to Article L. 22-10-34, II of the French Commercial Code, you are called on to vote on Resolutions 7, 8, and 9, to approve the fixed, variable and exceptional components making up the total remuneration and benefits of any kind paid during the fiscal year ended on 31 December 2023 or allocated in relation to the said fiscal year to the executive corporate officers (ex-post Say on Pay, known as "individual") resulting from implementation of the remuneration policy approved by the General Meeting of 20 April 2023, it being specified that the components composing the variable and exceptional remuneration may only be paid out after approval by the shareholders of the individual remuneration of executive corporate officers.

The individual remuneration components presented in the Board of Directors' report on corporate governance in Section 5.3.4.3 of the Universal Registration Document concern:

―	Jean-Luc Biamonti, Chairman of the Board of Directors (Resolution 7);
―	Christophe Kullmann, Chief Executive Officer (Resolution 8); and
―	Olivier Estève, Deputy CEO (Resolution 9).

5.2.1.5 Approval of the remuneration policy for corporate officers (Resolutions 10, 11, 12 and 13)

Pursuant to the provisions of Article L. 22-10-8 of the French Commercial Code, the Board of Directors proposes that by voting on Resolutions 10, 11, 12 and 13, you are called on to approve the remuneration policy for the corporate officers applicable to the Chairman of the Board of Directors (Resolution 10), the Chief Executive Officer (Resolution 11), the Deputy CEO (Resolution 12) and the Directors (Resolution 13) in consideration of the exercise of their mandate for the 2024 fiscal year.

The remuneration policy for Covivio's legal representatives, approved by the Board of Directors upon recommendation of the Appointments and Remunerations Committee is detailed in the Board of Directors' report on corporate governance in Section 5.3.4.1 of the Universal Registration Document. This remuneration policy will be submitted to the vote of the General Meeting each year and in the event of any major change in the remuneration policy.

5.2.1.6 Renewal of the terms of office of three Directors (Resolutions 14, 15 and 16)

The Directorship of Christophe Kullmann (Resolution 14) and the terms of office of Catherine Soubie (Resolution 15) and Patricia Savin (Resolution 16) expiring at the end of the Combined General Meeting of 17 April 2024, you will be invited under Resolutions 14 to 16 to reappoint them for a period of four years, expiring at the end of the General Meeting of Shareholders called in 2028 to approve the financial statements for the fiscal year ending 31 December 2027.

―	Christophe Kullmann, Director appointed on 25 April 2012 and Chief Executive Officer of Covivio, will continue to be even more directly involved in the company's strategy, for which he is responsible in the same way as the other Directors. He will continue to provide the Board of Directors with his financial, real estate, hotel and strategic expertise, and his solid experience in managing listed companies. Over the four years of his Directorship, Christophe Kullmann's attendance was 100%.
―	Catherine Soubie, independent Director appointed on 27 April 2016, will continue to bring her wealth of real estate and financial experience, as well as her experience with foreign listed companies, to the Board of Directors. Over the four years of her term as Director, Catherine Soubie's attendance was 100%.
―	Patricia Savin, independent Director appointed on 27 April 2016, as a lawyer specialising in the environment and Chairman of the Orée association, will continue to make a valuable contribution to the work of the Board, in particular thanks to her solid professional experience in CSR, particularly on climate and biodiversity issues. Over the four years of her term as Director, Patricia Savin's attendance was 96%.

Subject to approval of their renewal, they will thus keep actively contributing to the discussions and appropriate management of the company.

A biographical note, a list of all their terms of office and functions exercised over the last five fiscal years, their attendance and the number of shares they hold as of 31 December 2023 are provided in Section 5.3.2.1.3 of the Universal Registration Document.

The Board of Directors noted that if the entirety of Resolutions 14 to 16 is approved by the General Meeting, the proportion of independent Directors and the percentage of women would be maintained at 50% and 43% respectively.

5.2.1.7 Appointment of KPMG SA as Statutory Auditor (Resolution 17)

As Mazars was appointed as Statutory Auditor by the Combined General Meeting of 22 May 2000, it will reach the maximum limit of 24 years as a statutory auditor at the end of the Combined General Meeting of 17 April 2024.

With a view to providing for its replacement, it is proposed, under Resolution 17, to appoint for a period of six fiscal years expiring at the end of the General Meeting of Shareholders called in 2030 to approve the financial statements for the fiscal year ending 31 December 2029, KPMG SA, a limited company whose registered office is located at Tour Eqho, 2 avenue Gambetta, 92066 Paris La Défense Cedex, registered in the Nanterre Trade and Companies Register under number 775 726 417, as Principal Statutory Auditor.

Following the analysis of the various offers submitted at the end of the selection procedure by call for tenders launched by Covivio, the company's Audit Committee, meeting on 21 September 2022, recommended to the Board of Directors the appointment of KPMG SA, which decided to submit its appointment as Statutory Auditor by decisions dated 20 October 2022 and 15 February 2024 as part of the approval of the agenda and of the draft resolutions of the Combined General Meeting of 17 April 2024.

KPMG SA is a member of KPMG International, a network of independent firms known worldwide for its expertise in auditing international groups. It will be represented by Sandie Tzinmann.

5.2.1.8 Appointment of ERNST & YOUNG et autres as Statutory Auditors in charge of certifying sustainability information (Resolution 18)

Under Resolution 18, you are asked to appoint ERNST & YOUNG et Autres, a French simplified joint stock company with variable capital whose registered office is located at 1-2 Place des Saisons, Paris La Défense 1, 92400 Courbevoie, registered on the Nanterre Trade and Companies Register under number 438 476 913, as Statutory Auditor in charge of certifying sustainability information, for a period of one (1) fiscal year corresponding to the remaining term of its appointment as auditor of the Company's financial statements expiring at the end of the General Meeting of Shareholders called in 2025 to approve the financial statements for the fiscal year ending 31 December 2024.

This resolution is part of the transposition into French law of EU Directive 2022/2464 of 14 December 2022, known as the "CSRD (Corporate Sustainability Reporting) Directive", by Order no 2023-1142 of 6 December 2023 on the publication and certification of information on sustainability and the environmental, social and corporate governance obligations of commercial companies, and its implementing Decree no 2023-1394 of 30 December 2023, as supplemented by the two additional orders of 28 December 2023.

In accordance with the provisions of this new regulatory framework, the information contained in the sustainability report to be published in 2025 by the company, including detailed environmental, social and governance information and meeting the so-called "double materiality" principle, must be certified by an auditor appointed by the General Meeting of Shareholders.

5.2.1.9 Authorisation granted to the Board of Directors for the company to purchase treasury shares (Resolution 19)

Resolution 19 proposes that you authorise a share buyback programme. The principal characteristics of this programme will be the following:

―	the number of shares bought back may not exceed 10% of the company's share capital;
―	the purchase price may not exceed €85 per share (excluding acquisition costs);
―	the maximum amount of funds allocated to the buyback programme would be €500 million;
―	this programme may not be implemented during a public takeover bid.

The buyback by the company of its treasury shares would result in:

―	allocating shares to corporate officers or employees of the company and/or of companies belonging to its group;
―	delivering shares upon the exercise of rights attached to securities entitled to the allocation of company shares;
―	delivering as payment or exchange (up to a limit of 5% of the capital), specifically within the context of potential external growth, merger, spin-off or contribution operations;
―	cancelling shares in whole or in part, subject to adoption of Resolution 21;
―	setting up a liquidity agreement, noting that by law, in the event of acquisition under a liquidity agreement, the number of shares considered for calculation of the 10% limit of the share capital amount would match the number of shares purchased, deducting the number of shares resold during the authorisation granted by the General Meeting; and
―	any other practice that may be recognised by the law or the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) or any other purpose that could be authorised by the law or regulations in effect, given that, in such a case, the company would inform its shareholders by sending out a notice.

This authorisation would be given to the Board of Directors for a period of eighteen months with effect from the date of the General Meeting of 17 April 2024 and would immediately terminate, for the unused portion, the authorisation given by the Combined General Meeting of 20 April 2023.

Prior to its completion, the company will publish a description of the programme in the form stipulated in Article 241-2 of the General Regulations of the AMF.

5.2.2 Extraordinary resolutions

5.2.2.1 Financial authorisations to be conferred upon the Board of Directors (Resolutions 20 to 27)

In the Extraordinary General Meeting, you will be asked to grant certain financial authorisations to your Board of Directors and to authorise it, within the limits and conditions that you will set, to decide on the issuance of shares and/or securities directly or indirectly convertible to equity.

The Board of Directors wishes to continue having the means that enable it, if necessary, by calling upon the markets, to gather the financial resources needed for the development of your company.

It is being proposed that you grant the Board of Directors the following financial authorisations in the area of capital increases:

―	Resolution 20: capital increase through the incorporation of reserves, profits or premiums (useable outside public offering periods);
―	Resolution 22: issue of shares and/or transferable securities convertible to equity, maintaining shareholders' preferential subscription rights (useable outside public offering periods);
―	Resolution 23: issue of shares and/or transferable securities convertible to equity, through public offering, with waiver of shareholders' preferential subscription right and a mandatory priority period for share issues (useable outside public offering periods);
―	Resolution 24: issue of shares and/or transferable securities convertible to equity, through a public exchange offer launched by the company, with waiver of shareholders' preferential subscription right (useable outside public offering periods);
―	Resolution 25: issue of shares and/or transferable securities convertible to equity, with a view to compensating contributions in kind given to the company, made up of equity or transferable securities convertible to equity (useable outside public offering periods);
―	Resolution 26: issue of shares as part of the public exchange offer initiated by the company for the shares issued by Covivio Hotels;
―	Resolution 27: capital increase reserved for employees of the company and the Covivio group companies, covered by a company or group savings plan, with waiver of shareholders' preferential subscription right.

You will also be asked, in Resolution 21, to authorise the Board of Directors to reduce the company's share capital by cancelling shares purchased within share buyback programmes adopted by the company.

In proposing to you that you grant these authorisations, the Board of Directors seeks to clearly explain to you the impact of the corresponding resolutions submitted to your approval.

In accordance with the relevant applicable regulations, the Board of Directors will prepare a supplementary report relating to the use of this delegation mentioning, in particular, the following:

―	the impact of the issuance on the situation of holders of equity securities and securities convertible to equity (especially as regards their portion of shareholders' equity); and
―	the theoretical impact of the aforementioned issuance on the stock market value of the company's shares.

The Statutory Auditors will prepare their own reports on the financial authorisations, which will be made available to you in accordance with the legal and regulatory conditions.

5.2.2.1.1 Delegation of authority to be granted to the Board of Directors to increase the share capital of the company through the capitalisation of reserves, earnings or premiums (Resolution 20)

Under Resolution 20, you will be called upon to delegate to the Board of Directors, which may further delegate its authority, to carry out a capital increase, through capitalisation of all or part of the reserves, earnings, premiums or other sums for which capitalisation would be permitted. This transaction would not necessarily translate into the issue of new shares.

This delegation of authority would allow your Board of Directors to decide to perform one or more capital increases, up to a maximum nominal amount of €30.3 million (excluding adjustments to protect holders of transferable securities convertible to equity), representing approximately 10% of the share capital. This cap would be set independently and separately from the capital increase caps resulting from issues of shares or securities convertible into equity approved under Resolutions 22 to 27.

This delegation could not be used without your formal agreement during periods of public purchase or exchange offers on the company's shares.

This delegation, given for a period of 26 months as from the Combined General Meeting of 17 April 2024, would immediately terminate, for the unused portion, the delegation granted by the Combined General Meeting of 20 April 2023.

5.2.2.1.2 Authorisation to the Board of Directors to reduce the company's share capital through the cancellation of shares (Resolution 21)

Concurrently with the authorisation given to the company to conduct transactions on treasury shares under Resolution 19, Resolution 21 proposes that you should authorise the Board of Directors, which may sub-delegate this authority, to cancel shares acquired by the company under the buyback programme authorisation submitted in Resolution 19, or in any resolution having the same purpose and the same legal basis.

As provided for under French law, shares may only be cancelled up to a limit of no more than 10% of the share capital per 24-month period.

Consequently, you will be asked to authorise the Board of Directors to reduce the share capital under the applicable legal conditions.

This authorisation, given for a period of 18 months as from the Combined General Meeting of 17 April 2024, would immediately terminate, for the unused portion, the authorisation granted by the Combined General Meeting of 20 April 2023.

5.2.2.1.3 Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, maintaining the shareholders' preferential subscription right (Resolution 22)

Resolution 22 proposes that you delegate to the Board of Directors, which may further delegate such authority, powers to issue shares in the company and/or other transferable securities (including warrants for new or existing shares), convertible by any means, immediately or in the future, into equity in the company, in a subsidiary in which the company holds more than 50% of the shares directly or indirectly, or in a company directly or indirectly holding more than 50% of the company's shares, issued free or against payment, maintaining shareholders' preferential subscription rights.

The Board of Directors may use this authority, in order to have the necessary funds available at the appropriate time to develop the company's business.

In proportion to the value of their shares, shareholders would have preferential subscription rights to the shares and securities issued under this delegation. In case of deferred access to shares of the company - i.e. by transferable securities granting access to company shares by any means - your approval of this resolution would imply a waiver by the shareholders of their preferential right to subscribe for the shares to which these securities would be entitled.

The maximum nominal amount of the capital increases likely to be made immediately and/or in future would be set at €75.75 million, representing approximately 25% of the share capital. This amount would be set independently and separately from the capital increase caps resulting from share and/or security issues approved under Resolutions 20 and 23 to 27.

The nominal amount of the debt instruments convertible into equity (immediately and/or at a later date) that are likely to be issued may not exceed a total amount of €750 million. This amount would also constitute an overall nominal cap for transferable debt securities issues made under Resolutions 23 to 25, an overall cap for all of the issues of debt securities.

The issue price of the securities convertible to equity would be determined by the Board of Directors if and when it implements this delegation, complying with legal and regulatory provisions.

This delegation could not be used without your formal agreement during periods of public purchase or exchange offers on the company's shares.

This delegation would be given to the Board of Directors for a period of 26 months with effect from the Combined General Meeting of 17 April 2024 and would immediately terminate, for the unused portion, the delegation granted by the Combined General Meeting of 20 April 2023.

5.2.2.1.4 Delegation of authority to the Board of Directors to issue, through public offering, company shares and/or transferable securities convertible into equity, with waiver of shareholders' preferential subscription rights and a mandatory priority period for share issues (optional for transferable securities convertible into equity) (Resolution 23)

The Board of Directors may, in the interest of the company and its shareholders, in order to seize the opportunities offered by the financial markets, be led to issue such securities without preferential subscription rights.

You are also asked, through Resolution 23, to grant the Board of Directors the power, which may further delegate such authority, to issue by means of a public offering (including the public offerings mentioned in paragraph 1 of Article L. 411-2 of the French Monetary and Financial Code), without preferential subscription rights for shareholders, company shares and/or securities providing access to existing or new company shares, or shares in a subsidiary which is majority-held by the company, whether directly or indirectly, or a company which directly or indirectly holds more than 50% of the company's shares.

Your decision would imply a waiver of your preferential subscription right to the shares and/or securities that could be issued based on this delegation, in the understanding that this authorisation would imply, in favour of the holders of such securities convertible into equity as may be issued under this delegation of authority automatic waiver by the shareholders of their preferential subscription right to shares in connection with such securities.

We would like to point out that the Board of Directors would be obliged to grant shareholders a priority subscription period of at least three (3) trading days, solely for issues of shares through public offering conducted by the Board of Directors, in accordance with Articles L. 22-10-51 and R. 225-131 of the French Commercial Code; this priority period is an option for the issue of transferable securities other than shares.

The maximum nominal value of increases in the company's share capital that might be made immediately or in the future, by virtue of the present delegation, may not exceed €30.3 million, representing about 10% of the share capital, on the understanding that (i) the maximum nominal value of any capital increase that might be made immediately or in the future, by virtue of the present delegation with no priority period having been allocated to benefit shareholders, would be charged to the applicable cap amount for share capital increases as a result of shares and/or transferable securities issues authorised by Resolutions 24 and 25, and (ii) in all other cases, this amount is set independently and separately from the caps on share capital increases as a result of share and/or transferable securities issues authorised by Resolutions 20, 22 and 24 to 27.

The nominal amount of the debt securities convertible into equity likely to be issued may not exceed €750 million, the overall nominal cap for all debt instruments set by Resolution 22.

The issue price of the shares and/or securities convertible into equity would be determined by the Board of Directors if and when it implements this delegation, complying with legal and regulatory provisions.

This delegation could not be used without your formal agreement during periods of public purchase or exchange offers on the company's shares.

This delegation would be given to the Board of Directors for a period of 26 months with effect from the Combined General Meeting of 17 April 2024 and would immediately terminate, for the unused portion, the delegation granted by the Combined General Meeting of 20 April 2023.

5.2.2.1.5 Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, with waiver of shareholders' preferential subscription rights, in the event of a public exchange offer initiated by the company (Resolution 24)

In Resolution 24, you are asked to approve the delegation of authority granted to the Board of Directors, which may further delegate such authority, to issue shares and/or transferable securities convertible, immediately or from a future date into equity, on one or more occasions, in the event of a public exchange offer initiated by the company, in France or abroad.

This delegation would be separate and autonomous from the delegation provided for in Resolution 26 dedicated to the delegation of authority granted to the Board of Directors to carry out the public exchange offer to be implemented by the company as a result of the contribution by the Generali group of shares of Covivio Hotels, a subsidiary controlled and held at 43.86% by Covivio (before completion of the said contribution), representing 8.31% of the share capital and voting rights of Covivio Hotels, in accordance with the transactions described in the company's market press release dated 22 February 2024. Consequently, this delegation would not invalidate the delegation provided for in Resolution 26 and vice versa.

You will therefore, if necessary, be expressly asked to waive your preferential subscription rights to the shares and/or securities that could be issued based on this delegation, in the understanding this authorisation implies, for the holders of such securities convertible to the company's share capital as may be issued under this delegation of authority automatic waiver by the shareholders of their preferential subscription right to shares in connection with such securities.

The maximum nominal value of increases in the company's share capital that might be made immediately or in the future may not exceed 10% of the share capital of the company (corresponding to its amount on the date of use of this delegation by the Board of Directors), on the understanding that the overall maximum nominal value of the capital increases to be made under Resolutions 24 and 25 may not exceed 10% of the share capital of the company, the overall cap for all capital increases that might be made immediately or in the future under Resolutions 24 and 25, with regard to issues made without a priority period being conferred to benefit shareholders, in Resolution 23.

The nominal amount of the debt securities allowing immediate and/or future conversion into equity likely to be issued may not exceed €750 million, the overall nominal cap for all debt instruments set by Resolution 22.

For each individual offer, the Board of Directors would have to determine the nature and characteristics of the shares to be issued. The amount of the increase in share capital would depend on the result of the offer and the number of securities tendered under the exchange offer, taking into account the exchange ratio and the shares issued.

This delegation could not be used without your formal agreement during periods of public purchase or exchange offers on the company's shares.

It would be given to the Board of Directors for a period of 26 months with effect from the Combined General Meeting of 17 April 2024 and would immediately terminate, for the unused portion, the delegation granted by the Combined General Meeting of 20 April 2023.

5.2.2.1.6 Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, to pay for the contributions in kind granted to the company consisting of capital shares or transferable securities convertible into equity (Resolution 25)

In accordance with the option offered by Article L. 22-10-53 of the French Commercial Code, you are asked, under Resolution 25, to authorise the Board of Directors, which may further delegate such authority, to issue, from 1 May 2024 onwards, shares and/or transferable securities convertible into equity, in consideration for the contributions in kind made to the company consisting of shares or transferable securities convertible into equity, when Article L. 22-10-54 of the French Commercial Code is not applicable.

The maximum nominal value of increases in the company's share capital that might be made immediately or in the future under this delegation from 1 May 2024 onwards may not exceed 10% of the share capital of the company (corresponding to its amount on the date of use of this delegation by the Board of Directors), the overall cap for all capital increases that might be made immediately or in the future under Resolutions 24 and 25, with regard to issues made without a priority period being conferred to benefit shareholders, in Resolution 23.

The nominal amount of the debt securities convertible into equity likely to be issued may not exceed €750 million, the overall nominal cap for all debt instruments set by Resolution 22.

You will be asked to acknowledge the absence of your preferential subscription right to the shares and/or securities issued, as these are intended exclusively to remunerate contributions in kind, it being specified that this authorisation implies waiver ipso jure by the holders of any transferable securities convertible into equity of their preferential subscription rights to shares in connection with such transferable securities.

This delegation could not be used without your formal agreement during periods of public purchase or exchange offers on the company's shares.

The Board of Directors would specifically be required to approve the report of the contribution auditor(s) to be appointed, set the exchange ratio and, if applicable, the amount of the balance to be paid in cash, record the number of transferable securities to be issued in remuneration for contributions, determine the dates and conditions of issues of shares and/or transferable securities giving immediate or future access to the company's capital, and value the contributions.

This delegation, granted for a period of 26 months from 1 May 2024, would immediately terminate, for the unused portion, the delegation granted by the Combined General Meeting of 20 April 2023. As a result, this last delegation would remain fully usable until that date with a view in particular to remunerating and carrying out the contributions by to the company of 12,316,445 shares of Covivio Hotels (as more fully set out in 5.2.2.1.7 below) decided in principle by the Board of Directors on 15 February 2024.

5.2.2.1.7 Delegation of authority to the Board of Directors to issue company shares as part of the public exchange offer initiated by the company for the shares issued by Covivio Hotels (Resolution 26)

This resolution is particularly in line with the increase in the company's stake in the capital of its subsidiary Covivio Hotels, which would take the form of a contribution in kind by Generali Vie, Generali Retraite, Generali IARD and L'Equité of the entire 12,316,445 shares held in Covivio Hotels in favour of Covivio and representing 8.31% of the share capital and voting rights of Covivio Hotels. This contribution in kind would be remunerated only in Covivio shares, at a parity of 31 Covivio shares for 100 Covivio Hotels shares.

The realisation of this contribution in kind would have the effect of increasing Covivio's stake in the capital of Covivio Hotels from 43.86% to 52.17%, thus requiring it to initiate a public exchange offer on all the Covivio Hotels shares that it did not hold on to the effective date of the contribution (the "Offer").

Under Resolution 26 submitted for your approval, you are asked to vote on the delegation of authority to be granted to the Board of Directors, with the option of subdelegation, to decide on the issue of company shares as compensation for shares tendered into the Offer scheduled to be initiated by the company on the shares of Covivio Hotels, in accordance with the transactions described in the company's market press release dated 22 February 2024.

You will be asked, if applicable, to expressly waive your preferential subscription rights to the shares that may be issued on the basis of this delegation under the Offer.

The maximum nominal amount of the capital increases likely to be made immediately and/or in future would be set at €70 million. This amount would be independent and separate from that granted under Resolution 24 and would not be deducted from the overall cap for all the immediate or future capital increases provided for in Resolution 25 and, in the case of issues carried out without a priority period having been granted to the shareholders, in Resolution 23.

For each individual offer, the Board of Directors would have to determine the nature and characteristics of the shares to be issued. The amount of the capital increase would depend on the result of the Offer and the number of securities tendered under the exchange Offer, taking into account the exchange ratio and the shares issued.

This delegation would be granted for a period of 12 months from the Combined General Meeting of 17 April 2024 to which you are invited, and would not invalidate the delegation granted by this General Meeting under Resolution 24.

5.2.2.1.8 Delegation of authority to the Board of Directors to make capital increases reserved for employees of the company and companies in the Covivio group that are members of a company savings plan, with waiver of shareholders' preferential subscription right (Resolution 27)

You will be asked, under Resolution 27, to authorise the Board of Directors, which may further delegate such authority, to decide to increase the share capital under the provisions of the French Commercial Code and French Labour Code relating to the issue of shares or transferable securities convertible to existing company shares or shares to be issued, for the benefit of employees covered by a company savings plan offered by the company and/or its affiliates under the conditions of Article L. 225-180 of the French Commercial Code and Article L. 3344-1 of the French Labour Code.

This delegation of authority would be granted for a maximum nominal amount of the capital increase, resulting from the issues made pursuant to this delegation (including the capitalisation of reserves, earnings or premiums), of €500 thousand, representing 0.17% of the share capital, set irrespective of the par value of the shares that may be issued as a result of adjustments made to protect the holders of transferable securities giving future access to shares. This cap would be independent of any other authorisation granted by the General Meeting.

You will be requested to expressly waive your shareholder's preferential subscription right to new shares and/or to securities convertible to equity in favour of the said employees.

The subscription price of the shares and the discount offered will be set by the Board of Directors under the conditions of Article L. 3332-19 of the French Labour Code on the understanding that the discount offered may not exceed 30% of the average share price for the twenty trading days preceding the date of the decision to open the subscription period, and 40% of this same average when the retention period stipulated in the plan is greater than or equal to ten years, provided that the Board of Directors may also replace all or part of said discount by the allocation of shares or other transferable securities.

The Board of Directors may likewise provide for the allocation of free shares or other securities convertible to equity, it being understood that the total benefit resulting from this allocation as a company contribution or, where applicable, the discount on the subscription price, may not exceed the legal and regulatory limits and that the shareholders would waive all rights to shares or other securities convertible to equity that may be issued by virtue of this resolution.

This delegation would be given to the Board of Directors for a period of 26 months with effect from the Combined General Meeting of 17 April 2024 and would immediately terminate, for the unused portion, the delegation granted by the Combined General Meeting of 20 April 2023.

5.2.2.2 Amendments to the Articles of Association (Resolution 28)

By voting on Resolution 28, we propose that you amend Article 3 of the by-laws relating to its corporate purpose, in order to:

―	include the purpose of the company "Building well-being and lasting relationships", expressed at the end of 2019, and the commitment of the Board of Directors and Executive Management to take into consideration the social, societal and environmental consequences of their decisions on all stakeholders in the company, and
―	include the purpose of the company "Build sustainable relationships and well-being", expressed at the end of 2019; and
―	to extend the activity carried out on an ancillary basis to insurance brokerage activities exclusively on behalf of Covivio group companies.

5.2.2.3 Powers for formal recording requirements (Resolution 29)

Resolution 29 is a standard resolution concerning the granting of the powers required to make announcements and perform legal formalities related to holding the General Meeting.

We believe that these transactions, under these conditions, are a timely measure and we ask you to approve the resolutions to be presented to you.

The Board of Directors

5.3 Report from the Board of Directors on corporate governance

This report, drawn up by the Board of Directors pursuant to the provisions of Article L. 225-37, paragraph 6, of the French Commercial Code, provides an account to the shareholders in accordance with the provisions of Articles L. 22-10-8 to L. 22-10-11 and L. 225-37-4 of the French Commercial Code, on the composition of the Board, the conditions for preparing and organising its work as well as the limitations imposed by the Board on the powers of the Chief Executive Officer and the Deputy CEO. This report, which also provides information regarding the terms of office and functions of the corporate officers, sets out the remuneration policy applicable to them for the 2024 fiscal year, as well as the total and individual remuneration paid to each of the corporate officers for the 2023 fiscal year. It describes the diversity policy applicable to the members of the Board of Directors (its goals, its conditions of implementation and the results obtained) and describes the information on the manner the company implements a balanced gender representation within the management bodies of the company. Finally, it provides for the special terms and conditions of shareholder attendance at the General Meeting, the components likely to have an impact in the event of a public offer, the related-party agreements entered into between a corporate officer or a shareholder holding more than 10% of Covivio's voting rights and another company over which Covivio exercises its control within the meaning of Article L. 233-3 of the French Commercial Code, the procedure for assessment of the agreements relating to transactions entered in the ordinary course of business and on arm's-length terms, as well as the ongoing and effective financial delegations for a capital increase.

This report has been prepared on the basis of the deliberations of the Board of Directors, taken upon advice/recommendations from its Committees, and assistance has been provided by the Legal (Corporate and M&A) Department and the General Secretariat, who relied in particular on the work carried out and reports produced by the High Committee on Corporate Governance (HCCG) and on the basis of the various recommendations made and reports produced by the French Financial Markets Authority (Autorité des Marchés Financiers - AMF).

It was approved by the Board of Directors on 15 February 2024 and was subject to a certification by the Statutory Auditors included in their report on the annual financial statements.

The report on corporate governance and the Statutory Auditors' report on the annual financial statements were made public when they were published on the company's website following the filing of the Universal Registration Document with the AMF.

Governance principles

1. Adherence to the Afep-Medef Code

Covivio uses the Afep-Medef Code as reference framework for corporate governance. This decision was the subject of a press release published on 29 December 2008. Today, the company refers to the Afep-Medef Code in the version that was updated and published on 20 December 2022 (the "Afep-Medef Code"), which can be consulted on the HCCG website at: https:// hcge.fr/le-code-afep-medef.

Covivio continuously analyses the best practices in corporate governance as consolidated in the Afep-Medef Code, and is committed to applying them, part of a relentless drive to consolidate an open, transparent, efficient and pragmatic governance, in order to serve the long-term interests of the company, its shareholders, clients, employees and all of its stakeholders.

On the date of approval of the present report by the Board of Directors, Covivio complies with all principles and recommendations of the Afep-Medef Code and has never been investigated by the HCCG.

Covivio's corporate governance is also reflected by the company's Articles of Association, supplemented by the provisions of the Internal Regulations of the Board of Directors adopted on 31 January 2011 (which also includes the provisions applicable to its Committees) and which the Board of Directors will have reviewed on a regular basis to ensure they are adapted to ongoing legal and regulatory developments in governance rules and practices.

Thus, in 2023 the Board of Directors continued to adapt its Internal Regulations, in particular to:

―	include the procedure for selecting independent Directors;
―	to grant an additional variable remuneration of €1,000 to each French resident member physically present at the meetings of the Board of Directors and its Committees (not cumulative on the same day), and to increase the annual fixed remuneration of the chairs of the Strategy and Investments Committee, Appointments and Remunerations Committee and the CSR Committee to €15,000, in accordance with the terms of the compensation policy for Directors approved by the Combined General Meeting of 20 April 2023;
―	to extend the missions of the CSR Committee to the follow-up of the commitments made when the company has adopted a purpose.

The full versions of the Articles of Association and of the Board of Directors' Internal Regulations as updated, plus the guide on the prevention of insider dealing, are available via the company's website at the following address: https://www.covivio.eu/fr/ groupe/a-propos-de-covivio/gouvernance/.

2. Balance of powers

Separation of the duties of Chairman of the Board of Directors and Chief Executive Officer

Since 31 January 2011, Covivio has been organised according to a one-tier Board system, with a Board of Directors which, at its meeting on the same date, decided to separate the functions of Chairman and Chief Executive Officer.

This structure, which appears to be the mode of governance best suited to the company's activity, ensures a clear distinction between the Chairman's mission, consisting of ensuring the proper functioning of the Board of Directors, and the operational and executive functions which are the responsibility of General Management. This separation of functions makes it possible to strengthen governance and offers a better balance of powers between, on the one hand, the Board and, on the other hand, General Management. The appointment, in 2012, of the Chief Executive Officer as a Director has allowed him to be involved, in the same way as the other Directors, in defining and making decisions relating to company strategy, which he is responsible for implementing.

Limitation of the powers of General Management

To ensure a balance of powers and harmonious governance, the company has endeavoured to put in place limits on the powers of the Chief Executive Officer and the Deputy CEO as decided by the Board of Directors and the Strategy and Investment Committee, as defined in Article 4.2 of the Internal Regulations of the Board of Directors.

In addition, General Management is structured around three Management Committees set up in France, Germany and Italy, and an Executive Committee at European level, a body for reflection, consultation and decision-making on the Group's major policies.

Independence of the Board of Directors and effectiveness of the specialised Committees

The balance of powers within the Board of Directors is based mainly on its composition, which includes a high proportion of independent Directors in accordance with the Afep-Medef Code, a diversity of backgrounds, skills and experience among its members, and a staggering of the renewal of their terms of office, thus guaranteeing shareholders and the market that the Board's missions are performed with the necessary independence and objectivity.

The balance of powers is also ensured by the four specialised Committees deemed efficient by the Directors for taking the decisions of the Board of Directors. They are mainly composed of independent members of the Audit Committee, the Appointments and Remunerations Committee and the CSR Committee.

In order to guarantee the balance of powers between the company's governing bodies, the Internal Regulations of the Board of Directors organise a meeting without the executive corporate officers being present at least once per year, in accordance with the recommendations of the Afep-Medef Code.

Procedure to prevent conflicts of interest

The Chief Operating Officer closely monitors the application of the system for the prevention of conflicts of interest under the terms of which each Director has a formal obligation to declare, even potential conflicts of interest that may concern him or her and, in any event, refrain from participating in the corresponding discussions and deliberations.

5.3.1 Management bodies

5 .3.1.1 Composition of General Management

Since 31 January 2011, the company has been under the management of Christophe Kullmann, Chief Executive Officer, with the assistance, since the same date, of Olivier Estève, Deputy CEO.

Members of the General Management	Title	Nationality	Date of first appointment	Term of office	Date of renewal	Date term expires
Christophe Kullmann	Chief Executive Officer (CEO)	French	31/01/2011	4 years	01/01/2015 01/01/2019 01/01/2023	31/12/2026
Olivier Estève	Deputy CEO	French	31/01/2011	4 years	01/01/2015 01/01/2019 01/01/2023	31/12/2026

Upon the recommendation of the Appointments and Remunerations Committee, the Board of Directors chose not to have the terms of office of the Chief Executive Officer and Deputy CEO end on the date of the General Meeting, so that the Appointments and Remunerations Committee and the Board of Directors can fully devote itself to the calm discussion of the renewal of their terms of office and the remuneration conditions of the executive corporate officers outside the time of the General Meeting.

It is recalled that the Directorship of Christophe Kullmann, whose renewal is subject to the approval of the Combined General Meeting of 17 April 2024, allows him to be even more directly involved in the company's strategy, for which he is responsible in the same way as the other Directors.

The provisions relating to the appointment and dismissal of members of the Executive Board, as well as the powers granted to them, are defined in Article 19 of the company's Articles of Association, as set out in Section 6.5.2 below, and are supplemented by the provisions of the Rules of Procedure.

List of offices held and roles exercised by the company's executive corporate officers

The information is presented individually for each executive corporate officer in office at 31 December 2023 and includes in particular the information referred to in point 12.1 of Appendix 1 of delegated Regulation (EU) 2019/980 of 14 March 2019:

―	experience and expertise in business management;
―	offices and positions held during the 2023 fiscal year;
―	terms of office expired within the last five years (not including Covivio's group subsidiaries).

Christophe Kullmann, whose reappointment as Director is subject to the approval of the Combined General Meeting of 17 April 2024

Age: 58

Nationality: French

Business address: 10 rue de Madrid, 75008 Paris from 26 February 2024

Main functions exercised: Covivio's Chief Executive Officer

Skills and expertise

Biography

Christophe Kullmann has spent his whole career in the real estate industry. He was in charge of financial management at Immobilière Batibail, a publicly traded REIT, from 1992 until its merger in 1999 with Gecina, where he oversaw its financial management. At the helm of Covivio since its creation in 2001, Christophe Kullmann serves as Chief Executive Officer and is a member of the Board of Directors.

Founding member of the Fondation Palladio with Covivio, he is also Honorary Chairman of the Fédération des Entreprises Immobilières, (the Federation of Real Estate Companies, formerly the FSIF).

Offices held within Covivio:

Chief Executive Officer (CEO)

Date of appointment: 31 January 2011

Date of renewal: 1 January 2015 - 1 January 2019 - 1 January 2023

Expiry year of term of office: 31 December 2026

Director

Date of appointment: 25 April 2012

Date of renewal: 27 April 2016 - 22 April 2020

Expiry of term of office: General Meeting of 2024 approving the annual financial statements for the fiscal year ended 31 December 2023

Number of shares held as at 31 December 2023: 188,466 (plus beneficial ownership rights to 12,000 additional shares whose bare ownership was transferred)

Other offices held within the Covivio group:

Chairman of the Supervisory Board: Covivio Hotels SCA (public company), Covivio Immobilien SE (European company incorporated under German law)

Legal representative of Covivio, Chairman: Technical SAS, 6 Rue Fructidor SAS, Fédération des Assurances Covivio SAS (since 05/02/2024)

Legal representative of Covivio, General Manager: SCI Latécoère, SCI Latécoère 2, SCI Lenovilla, SCI Meudon Saulnier, SCI du 15 rue des Cuirassiers, SCI du 9 rue des Cuirassiers, SCI N2 Batignolles, SCCV Bobigny le 9 ^e Art, Chartres Avenue de Sully SCCVV, SCI Meudon Juin

Legal representative of Covivio, Co-Manager: Fontenay-Sous-Bois Rabelais SCCV, SNC Cœur d'Orly Promotion

Offices held outside the Covivio group:

Honorary Chairman: Fédération des Entreprises Immobilières (FEI - Trade association)

Director: IEIF (Institut de l'Épargne Immobilière et Foncière -Association)

Representing Covivio, member of the Executive Committee: Palladio Foundation

Terms of offices expired in the last 5 years:

Chairman of the Bursary Awards Committee: Palladio Foundation (until November 2023)

Chairman of the Board of Directors: FSIF, now called the FEI (ended in 2019)

⁽¹⁾ Real estate/Hotels

⁽²⁾ Banking/Finance

⁽³⁾ Environment/CSR

⁽⁴⁾ Strategy and M&A

⁽⁵⁾ Experience in public companies

⁽⁶⁾ International experience

Olivier Estève

Age: 59

Nationality: French

Business address: 10 rue de Madrid, 75008 Paris from 26 February 2024

Main function: Deputy CEO of Covivio

Biography

Olivier Estève is a graduate of École Spéciale des Travaux Publics (ESTP). After a 12-year career in the Bouygues Group (1990-2001), where in particular he served as Director of Development in the SCREG Bâtiment subsidiary, he joined Covivio in September 2002.

After having been Real Estate Manager, he now oversees all of Covivio's Development activities, Marketing, UX Design, and Wellio development.

Olivier Estève has been Deputy CEO of Covivio since 2011.

Offices held within Covivio:

Deputy CEO

Date of appointment: 31 January 2011

Date of renewal: 1 January 2015 - 1 January 2019 - 1 January 2023

Expiry year of term of office: 31 December 2026

Number of shares held on 31 December 2023: 108,103

Other offices held within the Covivio group:

Chairman: Covivio 2 SAS, Société du Parc Trinité d'Estienne d'Orves SAS, Hotels N2 SASU

Chairman of the Board of Directors: Central Società Di Investimento Per Azioni A Capitale Fisso (company under Italian law)

Member of the Supervisory Board and of the Audit Committee: Covivio Hotels SCA (public company)

Vice-Chairman of the Supervisory Board: Covivio Immobilien SE (European company incorporated under German law)

General Manager: SNC Jean Jacques Bosc, SCI Terres Neuves, SCI Rue de la Louisiane, Covivio Ravinelle SARL, Euromarseille Invest EURL, Covivio 4 EURL, Covivio 7 EURL, BGA Transaction SARL, Foncière Margaux SARL, SARL du 106-110 rue des Troènes, Telimob Paris SARL, Imefa 127 SCI, SCI Atlantis, SNC Palmer Plage, SCI Dual Center, SCI Charenton, Latepromo SNC, Covivio Participations EURL, SCI Avenue de la Marne, Omega B SARL, SCI Rueil B2, Wellio SNC, SNC Bordeaux Lac, SNC Sucy Parc, SNC Gambetta Le Raincy, SCI du 21 rue Jean Goujon, SNC Villouvette Saint Germain, SNC Normandie Niemen Bobigny, SCI Cité Numérique, SCI Danton Malakoff, SNC Meudon Bellevue, SNC Valence Victor Hugo, SNC Nantes Talensac, SNC Marignane St Pierre, Fructipromo SNC, SNC André Lavignolle, Covivio Alexanderplatz SARL (company under Luxembourg law), SNC Saint Germain Hennemont, SNC Antony Avenue de Gaulle, SNC Aix en Provence Cezanne, SNC Boulogne Jean Bouveri

Co-Manager: SCI Euromarseille 1, SCI Euromarseille 2

Legal representative of Telimob Paris SARL, General Manager: Telimob Nord SNC, Telimob Paca SNC, Telimob Paris SNC, Telimob Rhône-Alpes SNC, Telimob Sud-Ouest SNC

Legal representative of Foncière Margaux, General Manager: SCI du 3 Place A. Chaussy, SCI du 10 bis and 11 à 13 Allée des Tanneurs, SCI du 20 Avenue Victor Hugo, SCI du 32 Avenue P. Grenier, SCI du 40 rue Jean-Jacques Rousseau, SCI du 125 Avenue du Brancolar

Legal representative of SCI Euromarseille 1, General Manager: SCI Euromarseille BI

Legal representative of SCI Euromarseille 2, General Manager: SCI Euromarseille PK, SCI Euromarseille H

Legal representative of Covivio, General Manager: SCI Latécoère, SCI Latécoère 2, SCI Lenovilla, SCI Meudon Saulnier, SCI du 15 rue des Cuirassiers, SCI du 9 rue des Cuirassiers, SCI N2 Batignolles, SCCV Bobigny le 9 ^e Art, Chartres Avenue de Sully SCCVV, SCI Meudon Juin

Legal representative of Covivio, Co-Manager: Fontenay-Sous-Bois Rabelais SCCV, SNC Cœur d'Orly Promotion

Legal representative of Covivio 2, General Manager: SCI Cœur d'Orly Bureaux

Legal representative of Covivio, Chairman: Technical SAS, 6 Rue Fructidor SAS, Fédération des Assurances Covivio SAS (since 05/02/2024)

Member of the Committees: SCI Latécoère, SCI Lenovilla, SCI Latécoère 2, SCI du 9 rue des Cuirassiers, SCI du 15 rue des Cuirassiers, SCI N2 Batignolles, SNC N2 Promotion, SCI Euromarseille 1, SCI Euromarseille 2

Offices held outside the Covivio group:

None

Terms of offices expired in the last 5 years:

None

5.3.1.2 Powers of the Chief Executive Officer and the Deputy CEO and their limitations

The Chief Executive Officer is fully empowered to act in any situation on behalf of the company. He or she exercises these powers within the limits of the company object and subject to the powers granted expressly by law and the Articles of Association to General Meetings of Shareholders and the Board of Directors. The Chief Executive Officer represents the company in its relationships with third parties.

In agreement with the Chief Executive Officer, the Board of Directors will determine the scope and duration of the powers granted to the Deputy CEO. With respect to third parties, the Deputy CEO has the same powers to represent and commit the company as the Chief Executive Officer.

The powers of the Chief Executive Officer and the Deputy CEO are limited by the provisions of Article 4.2 of the Internal Regulations of the Board of Directors.

Each year, the Board of Directors sets an overall amount within which the Chief Executive Officer may guarantee commitments on behalf of the company made by a third party other than a controlled company in the form of sureties, endorsements or guarantees, and/or an amount beyond which each of the above commitments cannot be made. Any exceeding of the overall ceiling or the maximum amount set for a commitment must be subject to a special authorisation by the Board. In addition, the authorisations of guarantees of commitments in the name of the company taken on behalf of controlled companies within the meaning of Article L. 233-16, II of the French Commercial Code or granted to the tax and customs authorities are delegated by the Board of Directors to the Chief Executive Officer without limit of amount.

The following decisions cannot be made without approval from the Strategy and Investment Committee:

―

any investment made directly by the company or through a fully consolidated subsidiary, when the total amount of the investment, plus any liabilities attached to the assets in question, is between €30 million and €100 million (Group Share);

―

any sale by the company or through a fully consolidated subsidiary, with the exception of companies whose shares are listed for trading on a regulated market, of any business division, any investment in any company or any assets, whenever the total amount of the corresponding disinvestment, plus any liabilities attached and transferred, is between €30 million and €100 million (Group Share) inclusive, with the exception of intra-group transactions.

The prior authorisation of the Board of Directors is required after consulting the Strategy and Investment Committee concerning adoption of the following decisions:

―

any investment made directly by the company or through a fully consolidated subsidiary, when the total amount of the investment, plus any liabilities attached to the assets in question, is greater than €100 million (Group Share);

―

any sale by the company or through a fully consolidated subsidiary, with the exception of companies whose shares are listed for trading on a regulated market, of any business division, any investment in any company or any assets, whenever the total amount of the corresponding disinvestment, plus any liabilities attached and transferred, is greater than €100 million (with the exception of intra-group transactions).

In addition, the prior authorisation of the Board of Directors is required for adoption of the following decisions:

―	approval of the annual budget and the strategic business plan and any subsequent significant amendments to them;
―	incurrence of debt or the assumption of liabilities whenever, in each case, the total amount (Group Share) exceeds €100 million (except for intra-group transactions), in the understanding that the Chief Executive Officer is authorised to conclude financing transactions for less than that amount and may also sign the related sureties;
―	the issue of bonds, regardless of the amount, in accordance with Article L. 228-40 of the French Commercial Code;
―	signature of contracts for any merger, divestment or contribution of assets, except for intra-group transactions, or if the transactions have been approved by the said Committee and/or the Board;
―	acceptance by an executive corporate officer of the company of a new Directorship in a non-group company, listed on a French or foreign regulated market.

The decisions described in this section are made by a simple majority vote of the Board.

In accordance with the relevant legal provisions, these limitations are not binding on third parties.

5.3.1.3 Investment in the equity by General Management

Transactions carried out by members of General Management in Covivio shares during the 2023 fiscal year

General Management members	Acquisitions of financial instruments	Price (in €)	Sale of financial instruments	Price (in €)	Number of shares held at 31/12/2023 (to the company's knowledge)
Christophe Kullmann	18,710 shares ⁽¹⁾	-
	11,221 shares ⁽²⁾	44.87	-	-	188,466 ⁽³⁾
People associated with Christophe Kullmann	417 shares ⁽²⁾	44.87	-	-	5,417
Olivier Estève	8,390 shares ⁽¹⁾	-
	8,393 shares ⁽²⁾	44.87	1,000 shares	47.50	108,103
TOTAL					301,986

⁽¹⁾ Final allocation of free shares and performance shares.

⁽²⁾ Subscription to the payment of the dividend in new shares.

⁽³⁾ Fully owned shares to which 12,000 beneficially owned shares are added from a bare ownership transfer.

To the company's knowledge, the executive corporate officers held 0.30% of the share capital on 31 December 2023.

Subsequent to the end of the fiscal year:

―	Christophe Kullmann wholly owns 217,375 shares after the final allocation of 28,909 performance shares delivered in February 2024;
―	Olivier Estève owns 120,536 shares after the final allocation of 12,433 performance shares delivered in February 2024.

5.3.1.4 Role of the Executive Committee and Management Committees in General Management

The Committees, and especially the Executive Committee, are central to General Management, especially in Europe.

The Executive Committee, which is at the heart of the corporate governance system, is a forum for reflection, consultation and decision-making on the Group's major strategies. Composed of representatives of all of the Group's "country" and "product" activities, as well as various corporate functions, it is in charge of implementing the strategy defined by the Board of Directors, monitoring transnational and cross-functional projects, and coordinating European activities. It aims at ensuring coordination and consultation between its members whenever a transaction or an important decision affecting the general approach of the company or group must be considered or taken. In particular, it is consulted for each major decision or transaction concerning asset rotation policy, monitoring of subsidiaries and holdings, and financial policies. It also deals with matters relating to organisation, tools, etc. It validates all investment and disposal files whose value exceeds €5 million. In addition, its members are in charge of implementing the CSR objectives of the Group determined by the Board of Directors within their particular area of responsibility in coordination with the Sustainable Development Department.

Composition of the Executive Committee at 31 December 2023

The Executive Committee is supported by Management Committees set up in France, Germany and Italy, in charge of (i) monitoring operations, (ii) implementing the budget (finance, asset management, portfolio) and (iii) corporate matters.

The diversity of these bodies, in terms of gender, nationality, age, experience and skills, equips it to support the Group's strategic challenges in the different markets in which the Group operates.

5.3.1.5 Policy on diversity in management bodies

We are resolutely committed to countering discrimination and fostering diversity. We have a non-discrimination and diversity policy to promote balanced representation of women and men in the company's governing bodies.

Covivio was a signatory to the Diversity Charter in 2010 and the Global Compact in 2011. Its General Management is convinced that diversity, i.e. the variety of human profiles, is a factor for innovation, performance and quality of life within the company. The Human Resources Department is determined to diversify the talent profiles that support the Group's growth. Covivio also encourages more women in management and guarantees women employment conditions equivalent to those of men, in particular by establishing pay gap analyses within the same business line, in conjunction with employee representative bodies, and correcting, if necessary, any discrepancy not justified by objective evidence.

The breakdown of the female headcount in France is slightly up: 57.8% at the end of 2023 compared with 54.7% at the end of 2022. In managerial roles, there was equal representation: 49.4% of managers were women at 31 December 2023, compared to 49.3% at the end of 2022.

After having been at 36% throughout the year, following a departure at the end of the year, the proportion of women on Covivio's Executive Committee stood at 30% at the end of 2023. The share in the France and Italy Management Committees was stable at 50%, and in Germany, it reached 25% at the end of 2023. The percentage of women in the top 10% most senior positions was 47.3%.

Covivio's General Management promotes an environment conducive to gender parity at all levels of the Group, notably through the following methods:

―	strengthen gender balance in recruitment;
―	ensure equal opportunities in career paths, in particular through mentoring programmes for women;
―	guarantee equal pay for men and women in the same job, for the same level of skills, responsibilities and results;
―	guarantee equality in terms of professional development and salary in the event of a career break in the context of parental, maternity or adoption leave.

In 2017, Covivio launched the ex aequo programme with the objective of fostering the promotion of women within the Group. It consists of two main components:

―	raising employee awareness about gender equality through surveys and information meetings;
―	a mentoring programme designed to support and guide women who wish to receive guidance on their professional career and benefit from the support of a mentor who is a member of the European Management team.

In November 2023, the Board of Directors approved a proposal by the Appointments and Remunerations Committee that some performance objectives resulting in the allocation of free performance shares to executive corporate officers should be linked to the number of women in management positions every other year, alternating with the criterion of employee engagement. As such, the Board set a target based on an index incorporating:

―	the proportion of women on the Executive Committee;
―	the proportion of women on country Management Committees;
―	the proportion of women who are managers;
―	the equality index published annually.

In addition, on the proposal of General Management, and after review by the Appointments and Remunerations Committee, the Board of Directors of Covivio set, at its meeting of 16 December 2020, the objective of gradually increasing the proportion of women on the Executive Committee, to 40% or more by 2023. To date, this objective has not been achieved: following a departure at the end of 2023, the proportion of women on the Executive Committee, which was 36% throughout the year, has fallen to 30%. However, the target of 40% is maintained. Similarly, the Board has set the objective of increasing the average proportion of women in the three national Management Committees (France, Germany and Italy) to 40% by 2023. This objective has been achieved, with an average of 42% at the end of 2023.

Lastly, in order to promote the balanced representation of women and men within the General Management and pursuant to the provisions of Article L. 225-53 of the French Commercial Code, the Internal Regulations of the Board of Directors ensure that at least one person of each gender is among the candidates throughout the selection process for the Deputy CEOs.

5.3.1.6 Succession plans

The Appointments and Remunerations Committee is responsible for overseeing the establishment of succession plans for executive corporate officers and current or future members of the Executive Committee. As such, it conducts regular reviews of the management team and a talent review to build the succession plan for key positions at Group level. For several years, it has also ensured, through specific free performance share plans, the retention of potential candidates identified for access to management positions.

Succession plans pertaining to short- or medium-term end dates (unexpected succession in the event of resignation, inability, death) and long-term end dates (planned succession in the event of retirement, expiry of term of office). They were reviewed twice in 2022, in June and October.

Following Jean Laurent's resignation from his term of office as Chairman of the Board, the Board of Directors proceeded to appoint his replacement, Jean-Luc Biamonti, in accordance with the provisions of succession plans for non-executive corporate officers, the relevance of which could be measured during the latest formal evaluation of the operations of the Board and its Committees, performed at the end of 2022.

During the 2023 fiscal year, the Appointments and Remunerations Committee, in conjunction with the Chief Executive Officer, once again reviewed the succession plan for the Chief Executive Officer and the Deputy CEO, with a short-and medium-term perspective.

5.3.2 Board of Directors

5.3.2.1 Composition of the Board of Directors in 2023

A diverse Board of Directors comprising complementary areas of skill and expertise and deemed efficient for the relevant administration of the company

The table below summarises the composition of the Board of Directors and of the Committees as of 31 December 2023.

⁽¹⁾ The data is expressed in number of years and months from the date of 1 ^st appointment of physical persons.

⁽²⁾ This duration takes into account seniority within the company.

⁽³⁾ It being specified that the Covéa group holds 7,365,314 shares.

⁽⁴⁾ It being specified that the Delfin group holds 27,918,616 shares.

⁽⁵⁾ To which 12,000 beneficially-owned shares are added following a bare ownership transfer.

⁽⁶⁾ It being specified that Groupe Crédit Agricole Assurances holds 8,343,810 shares.

5.3.2.1.1 Changes in the composition of the Board of Directors and Committees in 2023

During 2023, the composition of the Board of Directors was maintained at 14 members.

The terms of office as Directors of Jean-Luc Biamonti, Christian Delaire and Olivier Piani as well as Covéa Coopérations and Delfin SARL, represented respectively on the Board of Directors by Olivier Le Borgne and Giovanni Giallombardo, were renewed for a period of four years by the Combined General Meeting of 20 April 2023. Their term of office on the various committees was also renewed as of this date by the Board of Directors.

On the recommendation of the Appointments and Remunerations Committee, the Board of Directors decided to reappoint Jean-Luc Biamonti as Chairman of the Board for the duration of his Directorship, i.e. until the end of the General Meeting of Shareholders called in 2027 to approve the financial statements for the fiscal year ending 31 December 2026.

Jean Laurent stopped exercising his role as Honorary Chairman on 12 January 2023, following his death.

The terms of office of Sergio Erede and Ariberto Fassati as non-voting members ended at the end of the Combined General Meeting of 20 April 2023.

The changes to the composition of all governance bodies are summarised below.

Governance body	Date	Departure	Appointment/Coopting	Renewal
Board of Directors	12 January 2023	Jean Laurent (Honorary Chairman)	/	/
	20 April 2023	Sergio Erede (non-voting member of the Board) Ariberto Fassati (non-voting member of the Board)	/	Jean-Luc Biamonti (Chairman) Covéa Coopérations ⁽¹⁾ Christian Delaire Delfin SARL ⁽²⁾ Olivier Piani
Audit Committee	20 April 2023	/	/	Christian Delaire (Chairman) Jean-Luc Biamonti (guest)
Appointments and Remunerations Committee	20 April 2023	Sergio Erede (guest)	/	Olivier Piani Jean-Luc Biamonti (guest)
Strategy and Investment Committee	20 April 2023	Sergio Erede (guest) Ariberto Fassati (guest)	/	Olivier Piani (Chairman) Jean-Luc Biamonti Olivier Le Borgne
CSR Committee	20 April 2023	/	/	Jean-Luc Biamonti Christian Delaire

⁽¹⁾ Olivier Le Borgne is the permanent representative of Covéa Coopérations.

⁽²⁾ Giovanni Giallombardo is the permanent representative of Delfin SARL.

Summary of the composition of governance bodies in 2023

	Number of members		Independence rate		Percentage of women
	2022	2023	2022	2023	2022	2023
Board of Directors	14	14	57%	50%	43%	43%
Audit Committee	4	4	75%	75%	50%	50%
Appointments and Remunerations Committee	3	3	67%	67%	33%	33%
Strategy and Investment Committee	6	6	33%	17%	17%	17%
CSR Committee	6	6	83%	67%	67%	67%

	Percentage of internationalisation		Average age
	2022	2023	2022	2023
Board of Directors	29%	29%	56 years	57 years
Audit Committee	25%	25%	52 years	53 years
Appointments and Remunerations Committee	0%	0%	62 years	63 years
Strategy and Investment Committee	33%	33%	57 years	58 years
CSR Committee	33%	33%	55 years	56 years

5.3.2.1.2 Changes in the proposed composition of the Board of Directors for the 2024 fiscal year

The expiry of the Directorship of Christophe Kullmann in April 2024, as well as the terms of office of Patricia Savin and Catherine Soubie (Independent Directors), led the Appointments and Remunerations Committee to examine changes in the composition of the Board of Directors.

In accordance with the recommendation of Article 7.2 of the Afep-Medef Code, after considering the desired balance of its composition and of that of its Committees, the Board of Directors, in its meeting on 15 February 2024 and on the advice of the Appointments and Remunerations Committee, decided to submit for the approval of the Combined General Meeting of 17 April 2024, the renewal for a duration of four years, expiring at the end of the General Meeting of Shareholders called in 2028 to approve the financial statements for the fiscal year ending on 31 December 2027:

―

of the Directorship of Christophe Kullmann as a Director, also Chief Executive Officer. He will still be more directly aligned with the company's strategy, for which he is responsible at the same level as the other Directors. He will continue to provide the Board of Directors with his financial, real estate, hotel and strategic expertise, and his solid experience in managing listed companies;

―

the terms of office as independent Directors of Patricia Savin and Catherine Soubie. Patricia Savin, as a lawyer specialising in the environment and Chairman of the Orée association, will continue to make a valuable contribution to the work of the Board, in particular thanks to her solid professional experience in CSR, particularly on climate and biodiversity issues. Catherine Soubie will also continue to bring her wealth of real estate and financial experience, as well as her experience with foreign listed companies, to the Board of Directors.

Impacts of changes in the composition of the Board of Directors subject to approval by the Combined General Meeting of 17 April 2024 of the renewal of the aforementioned terms of office as Director.

5.3.2.1.3 Backgrounds, experience and expertise of non-executive corporate officers

The Appointments and Remunerations Committee regularly considers the needs of the Board of Directors in terms of skills and expertise.

In response to the desire of the Directors, expressed at the end of the formal assessment of the functioning of the Board and its Committees carried out at the end of 2019, to give a more international profile to the Board of Directors, particularly in view of the geographical exposure of the Board's activities, the skills and expertise deemed necessary for the appropriate management of the company were strengthened in 2022 with the appointment of Daniela Schwarzer as an independent Director. By bringing her experience and in particular her in-depth knowledge of the German economic and social environment, and her CSR skills, she helps to maintain the highest standards of commitment, independence and competence of the Board of Directors.

The renewal of the terms of office of Directors which expired in 2023 has enabled the Board of Directors to maintain, with its 14 members, the desired balance in the skills and expertise that it deems necessary for the proper management of the Board. The Directors are complementary due to their different professional experiences. Their individual skills and expertise cover the following areas related to Covivio's strategy:

Presentation of the individual skills and expertise of the Directors

	Real Estate/Hotels	Bank/ Finance	Environment/ CSR	Strategy/ M&A	Experience in public companies	International experience
Jean-Luc Biamonti	√	√	√	√	√	√
Romolo Bardin	√	√		√	√	√
Christian Delaire	√	√	√	√	√	√
Giovanni Giallombardo	√	√	√	√	√	√
Jérôme Grivet	√	√		√	√	√
Stéphanie de Kerdrel	√	√	√		√
Christophe Kullmann	√	√	√	√	√	√
Olivier Le Borgne	√	√		√	√
Alix d'Ocagne	√	√	√	√
Sylvie Ouziel			√	√	√	√
Olivier Piani	√		√	√	√	√
Patricia Savin	√		√	√
Daniela Schwarzer		√	√	√	√	√
Catherine Soubie	√	√		√	√

√	Highly developed skills and expertise

The information is presented individually for each Director in office at 31 December 2023 ⁽¹⁾ and includes in particular that referred to in point 12.1 of Annex 1 to delegated Regulation (EU) 2019/980 of 14 March 2019:

―	experience and expertise in business management;
―	offices and positions held during the 2023 fiscal year;
―	terms of office expired within the last five years.

⁽¹⁾ It being specified that those relating to Christophe Kullmann, Chief Executive Officer and Director of Covivio, are set out in Section 5.3.1.1 above.

Jean-Luc Biamonti

Age: 70

Nationality: Monegasque

Professional address: 18, avenue de Grande Bretagne, MC 98000 Monaco, Principality of Monaco

Main function exercised: Chairman of the Strategy Committee of Calcium Capital

Skills and expertise:

Biography

Holder of an MBA from Columbia University and a graduate of ESSEC, Jean-Luc Biamonti joined Goldman Sachs as an investment banker and held various offices there for 16 years. As a partner in the firm, he was responsible for banking business in France and for coverage of the distribution and mass-market consumer goods industry in Europe.

After having left the bank in 2008, he founded Calcium Capital and developed an SME investment business via this group.

Until January 2023, he was Deputy Chairman of Société des Bains de Mer Monaco, where he was a Director since 1985 and Chairman of the Board of Directors since 1995.

Jean-Luc Biamonti is Chairman of the Audit and Risk Committee of EssilorLuxottica and Lead Director since 22 February 2023.

Offices held within Covivio:

Chairman of the Board of Directors (since 21 July 2022)

Director

Member of the Strategy and Investment

Committee

Member of the CSR Committee

Date of appointment: 31 January 2011

Date of renewal: 17 April 2015 - 26 April 2017 - 20 April 2021 - 20 April 2023

Expiry of term of office: General Meeting of 2027 approving the annual financial statements for the fiscal year ending 31 December 2026

Number of shares held on 31 December 2023: 506

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Chairman of the Strategy Committee: Calcium Capital SAS

Lead Director (since 22/02/2023) and Chairman of the Audit and Risk Committee: EssilorLuxottica SA (public company)

Terms of offices expired in the last 5 years:

Director, Chairman of the Board of Directors and Deputy Chairman: Société des Bains de Mer Monaco SA (S.B.M. foreign public company - until 24/01/2023)

Director: MC Financial Company (until 24/01/2023)

Chairman: S. B. M. USA Inc. (until 24/01/2023)

Permanent representative of S. B. M., Director and Deputy Chairman: S. H. L (until 24/01/2023)

Manager: MC S.B.M. International SARL (until 24/01/2023)

Chairman of the Appointments and Remunerations Committee: Covivio (public company - term ended in 2022)

Chairman of the Board Committee: Betclic Everest Group (term ended in 2022)

Chairman of the Appointments and Remunerations Committee: Covivio (public company - term ended in 2019)

ACM Vie

Strasbourg Trade and Companies Register 332 377 597

4, rue Frédéric-Guillaume Raiffeisen, 67000 Strasbourg

Offices held within Covivio:

Director

Date of appointment: 31 January 2011

Date of renewal: 17 April 2015 - 19 April 2018 - 21 April 2022

Expiry of term of office: General Meeting of 2026 approving the annual financial statements for the fiscal year ended 31 December 2025

Number of shares held on 31 December 2023: 8,165,592

Other offices held within the Covivio group:

Member of the Supervisory Board: Covivio Hotels SCA (public company)

Offices held outside the Covivio group:

Director: Sérénis Assurances SA, ACM GIE, ACM Services SA, Foncière Massena SA, Agrupacio AMCI de Seguros y Reaseguros SA, GACM Seguros Generales, Compañía de Seguros y Reaseguros SAU (formerly AMGEN Seguros Generales SAU), GACM España SA, Valinvest Gestion

Member of the Supervisory Board: SCPI CMCIC Pierre Investissement, SCPI Crédit Mutuel Pierre 1, SCPI Selectpierre 1, SCPI Logipierre 1, SCPI Logipierre 3

Terms of offices expired in the last 5 years:

None

⁽¹⁾ Real estate/Hotels

⁽²⁾ Real estate/Hotels

⁽³⁾ Environment/CSR

⁽⁴⁾ Strategy and M&A

⁽⁵⁾ Experience in public companies

⁽⁶⁾ International experience

Stéphanie de Kerdrel

Age: 48

Nationality: French

Professional address: 42 rue des Mathurins, 75008 Paris

Main function exercised: Deputy Chief Investment Officer of ACM

Skills and expertise:

Biography

Stéphanie de Kerdrel holds a Master's degree in Banking-Finance-Insurance and a Master's Degree in International Economics and Finance from the University of Paris-Dauphine.

She began her career in fixed income management at Assurances du Crédit Mutuel. In 2007, she chose to focus on teaching and training for around ten years. Her main achievement is the management of the creation of a new higher education school in the digital professions (EEMI), founded in 2011 by Xavier Niel, Marc Simoncini and Jacques Antoine Granjon, of which she was then the General Manager.

After achieving the objectives of this project, she decided to return to the field of finance and joined Assurances du Crédit Mutuel in 2018 as Deputy Investment Director for fixed income and real estate asset management.

Offices held within Covivio:

Permanent representative of ACM Vie, Director

Member of the Strategy and Investment Committee

Member of the CSR Committee

Date of appointment: 1 December 2020

Date of renewal: 21 April 2022

Expiry of term of office: General Meeting of 2026 approving the annual financial statements for the fiscal year ended 31 December 2025

Number of shares held on 31 December 2023:

None

Other offices held within the Covivio group:

Member of the Strategy Committee: SCI du 9 rue des Cuirassiers, SCI du 15 rue des Cuirassiers

Representative of ACM Vie SA on the Steering Committee: SCI N2 Batignolles

Offices held outside the Covivio group:

Permanent representative of ACM Vie SA on the Board: SAS Immobilière ACM

Chief Executive Officer: Foncière Massena SA

Manager: SCI ACM 14 rue de Londres, SCI ACM Cotentin, SCI ACM Provence La Fayette, SCI ACM Saint Augustin, SCI ACM Tombe Issoire Permanent representative of ACM Vie SA on the Board: Foncière Massena SA

Permanent representative of ACM Vie SA: OPCI ACM Tour First

Members of the Board of Directors: OPCI EDJ

Alternate member of the Strategy Committee: SCI Pleyel R 2

Terms of offices expired in the last 5 years:

None

Romolo Bardin

Age: 45

Nationality: Italian

Professional address: 7, rue de la Chapelle, L-1325 Luxembourg

Main function exercised: Chief Executive Officer of Delfin SARL

Skills and expertise:

Biography

Romolo Bardin is a graduate of Business Management at Ca'Foscari University in Venice.

He is Chief Executive Officer of Delfin SARL. Prior to that he held positions at Sunglass Hut Europe in London and Luxottica Group in Italy.

Offices held within Covivio:

Director

Member of the Strategy and Investment Committee

Member of the Audit Committee

Date of appointment: 17 April 2015 (it being specified that Romolo Bardin had been the permanent representative of Aterno, Director since 31 January 2011)

Date of renewal: 19 April 2018 - 21 April 2022

Expiry of term of office: General Meeting of 2026 approving the annual financial statements for the fiscal year ended 31 December 2025

Number of shares held on 31 December 2023: 22,088

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Chief Executive Officer: Delfin SARL (foreign company)

Member of the Board of Directors, member of the Risk and Oversight Committee and Member of the Appointments and Remunerations Committee: EssilorLuxottica SA (public company)

Member of the Board of Directors and Chairman and Chief Executive Officer of foreign companies: Aterno SARL, DFR Investment SARL, Immochapelle SA, Vast Gain Group Ltd SARL

Member of the Board of Directors of foreign companies: Fondazione Leonardo Del Vecchio (foundation), Luxair SA

Terms of offices expired in the last 5 years:

Member of the Board of Directors, member of the Strategy and Investment Committee, member of the Appointments Committee and member of the Regulated Agreements Committee: Assicurazioni Generali SPA (foreign public company - term ended in 2022)

Member of the Board of Directors and Chairman and Chief Executive Officer: Delfin Finance SA (foreign company -term ended in 2019)

Member of the Risks and Audit Committee: Assicurazioni Generali SPA (foreign public company - term ended in 2019)

Covéa Coopérations

Le Mans Trade and Companies Register 439 881 137

160, rue Henri Champion, 72100 Le Mans

Offices held within Covivio:

Director

Date of appointment: 17 February 2016

Date of renewal: 17 April 2019 - 20 April 2023

Expiry of term of office: General Meeting of 2027 approving the annual financial statements for the fiscal year ending 31 December 2026

Number of shares held on 31 December 2023: 629 (it being specified that the Covéa Group holds 7,365,314 shares)

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Director: Assurland.com SA, AZ Plus SA, Carma SA, Covéa Lux, Covéa

Agora, Covéa Protection Juridique SA, GMF Assurances SA, MAAF Assurances SA, MAAF Vie SA, MMA IARD SA, MMA Vie SA

Member of the Audit and Compliance Risk Committee and the Remuneration Committee: Carma SA

Member of the Supervisory Committee: Covéa Finance

Chairman of the Strategy Committee: CAT.SA SAS

Chairman: CAT.SA SAS, Cesvi France SAS, Coparex SAS

Terms of offices expired in the last 5 years:

Director: Gespré Europe SA (ended in 2022), Caja de Seguros Reunidos - Compañía de Seguros y Reaseguros SA (CASER - foreign company - ended in 2020)

Member: Covéa Immobilier Support GIE (term ended in 2019)

Olivier Le Borgne

Age: 57

Nationality: French

Business address: 86, rue Saint-Lazare, 75009 Paris

Main function exercised: Chief Investment Officer at Covéa

Skills and expertise:

Biography

Olivier Le Borgne, a graduate of the Institut Supérieur de Gestion de Paris, began his career as a Management Controller.

In 1992, he joined the administrative and Technical Department of GMF Vie. In 1998, he joined the Finance Department of Azur-GMF until 2006, where he held various positions. Firstly, as a management controller in charge of monitoring the companies, then as head of earnings forecasts and finally as head of financial control.

From 2006 to 2015, he was Director of Financial Strategy of GMF and then from 2015 to 2020 he was Head of Investments and Assets-Liabilities at Covéa.

Since December 2020, Olivier Le Borgne is Chief Investment Officer of Covéa.

Offices held within Covivio:

Permanent representative of Covéa Coopérations, Director

Member of the Strategy and Investment Committee

Date of appointment: 1 December 2020

Date of renewal: 20 April 2023

Expiry of term of office: General Meeting of 2027 approving the annual financial statements for the fiscal year ending 31 December 2026

Number of shares held on 31 December 2023: None

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Deputy CEO: GMF Assurances SA, GMF Vie SA, MAAF Assurances SA, MAAF Vie SA, MMA Iard SA, MMA Vie SA

Member of the Supervisory Board: Covéa Finance SAS, Covéa Immobilier SAS

Member of the Remuneration and Appointments Committee: Covéa Finance SAS

Chairman of the Supervisory Committee: Covéa Finance SAS, Covéa Immobilier SAS

Representative of Covéa Coopérations, Chairman: Coparex SAS

Representative of Covéa, member of the Investment Committee: France Assureurs

Logistic Representative, Director: GIE Cibail

Terms of offices expired in the last 5 years:

Manager: SCI Covéa Real Estate Développement (term ended in 2021)

Representative of MAAF Assurance SA, Chairman: CORED II SASU (term ended in 2021)

Member of the Supervisory Board: Covéa Salariés FCPE (term ended in 2021)

Representative of Covéa Protection Juridique, member of the Supervisory Committee: Covéa Finance SAS (term ended in 2020)

Member of the Strategic Committee: Lagune SAS (ended in 2020), ALMA LMB LUX SAS (ended in 2020), Lagune International SAS (ended in 2020), Orestate SPPICAV SAS (ended in 2020), Oricore SPPICAV SAS (ended in 2020)

Representative of Orestate OPCI, member of the Strategic Committee: Batipart Régions 1 SAS (ended in 2020)

Member of the Reinsurance Investment Committee: Coparex SAS (ended in 2023)

Member of the Funds Investment Committee: Coparex SAS (ended in 2023)

Christian Delaire

Age: 56

Nationality: French

Business address: 33, avenue Paul Doumer, 75116 Paris

Main function exercised: Senior Advisor and Board Member

Skills and expertise:

Biography

Christian Delaire is a graduate of ESSEC. He built his career around finance and real estate.

After having occupied several positions at AXA Real Estate, he was appointed Chief Investment Officer of AXA Real Estate in 2006. He then undertook the following positions: Chief Executive Officer at AEW Europe from 2009 to 2014 and Chief Executive Officer at Generali Real Estate from 2014 to 2016.

His ambition to move towards the non-executive part of the business led him to leave Generali and join Foncière Atland (public company of the Atland group dedicated to investments and asset management) as a senior advisor, a position he occupied until 2023.

He is also an independent Director of CEREIT, Atenor and New Immo Holding.

Offices held within Covivio:

Independent Director

Chairman of the Audit Committee

Member of the CSR Committee

Date of appointment: 17 April 2019

Date of renewal: 20 April 2023

Expiry of term of office: General Meeting of 2027 approving the annual financial statements for the fiscal year ending 31 December 2026

Number of shares held on 31 December 2023: 783

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Managing Director: CDE Advisors SARL

Director: CEREIT SA (foreign listed company), Atenor SA (foreign public company), NODI SA, New Immo Holding (since 03/03/2023)

Terms of offices expired in the last 5 years:

Senior Advisor: Foncière Atland (until 31/08/2023)

Chairman of the CSR Committee: Covivio (public company - ended in 2022)

Delfin SARL

Luxembourg Trade and Companies Register B 117 420

7 , rue de la Chapelle, L-1325 Luxembourg

Offices held within Covivio:

Director

Date of appointment: 21 July 2022

Date of renewal: 20 April 2023

Expiry of term of office: General Meeting of 2027 approving the annual financial statements for the fiscal year ending 31 December 2026

Number of shares held on 31 December 2023: None (it being specified that the Delfin group holds 27,918,616 shares)

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

None

Terms of offices expired in the last 5 years:

None

Giovanni Giallombardo

Age: 68

Nationality: Italian and Luxembourg

Professional address: 7, rue de la Chapelle, L-1325 Luxembourg

Main function exercised: Chairman and member of the Board of Directors of Luxair SA

Skills and expertise:

Biography

After studying Economics at the European School of Luxembourg and obtaining a degree in Economics and Business from the University of Florence, Giovanni Giallombardo has spent most of his career in the finance sector.

In particular, he joined the Luxembourg branch of UniCredit in 2001, where he most recently held the positions of General Manager and Senior Vice-President.

Today, Giovanni Giallombardo is a Director of the holding company Delfin SARL and Chairman of the Board of Directors of LuxairGroup.

Offices held within Covivio:

Permanent representative of Delfin SARL, Director

Date of appointment: 21 July 2022

Date of renewal: 20 April 2023

Expiry of term of office: General Meeting of 2027 approving the annual financial statements for the fiscal year ending 31 December 2026

Number of shares held on 31 December 2023: 25,000

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Chairman and member of the Board of Directors: Luxair SA (foreign company)

Member of the Board of Directors of foreign companies: Delfin SARL, CargoLux Airlines International SA, EssilorLuxottica RE, Immochapelle SA, Special Packaging Solutions Investments SARL, Lux-Pension SICAV, Lux-Portfolio SICAV, Aterno SARL, DFR Investment SARL

Terms of offices expired in the last 5 years:

Vice Chairman and Chief Executive Officer: UniCredit Luxembourg SA (foreign company)

Member of the Board of Directors and the CSR Committee: EssilorLuxottica SA (public company - term ended in 2021)

Member of the Board of Directors: UniCredit Luxembourg SA (foreign company), Mudam Foundation (foreign company)

Alix d'Ocagne

Age: 54

Nationality: French

Business address: 4, rue Saint-Florentin, 75001 Paris

Main function exercised: Chairwoman of DOCK75

Skills and expertise:

Biography

Alix d'Ocagne has a law degree from the University of Paris 1 Panthéon-Sorbonne and an Executive MBA from HEC. She has spent her entire career in the notary profession, specialising in real estate transactions for major accounts.

She worked for 25 years at the Cheuvreux law firm as an associate, partner, managing partner and president. She actively participated in the development of this law firm.

She left Cheuvreux at the end of 2019 to embark on a social entrepreneurship project.

In 2021, she founded Bring The Way, which supports companies in their societal commitments and creates links with associations.

Offices held within Covivio:

Independent Director

Chairwoman of the CSR Committee

Date of appointment: 13 February 2020

Date of renewal: 21 April 2022

Expiry of term of office: General Meeting of 2026 approving the annual financial statements for the fiscal year ended 31 December 2025

Number of shares held on 31 December 2023: 200

Other offices held within the Covivio group:

Chairwoman: Covivio Foundation

Offices held outside the Covivio group:

Chairwoman: DOCK75 SAS, SEGC SAS, Bring The Way Corporate and Association

Member of the Supervisory Board: Eukratos SAS

Terms of offices expired in the last 5 years:

Chairwoman: Cheuvreux SAS (term ended in 2019)

Director: Association B2X (term ended 2022), Association Habitat et Humanisme Ile de France

Sylvie Ouziel

Age: 53

Nationality: French

Business address: 133, avenue des Champs Elysées, 75008 Paris

Main position held: CEO of shared Platforms at Publicis Group

Skills and expertise:

Biography

A graduate of École Centrale Paris and holder of an Executive MBA from Northwestern University, Sylvie Ouziel held the position of Global Deputy CEO of Accenture Management Consulting (previously Andersen Consulting), a company where she held several positions, bringing it strong international exposure.

She then spent eight years at Allianz where she held the position of Global CEO Allianz Assistance and CEO Asia Pacific Allianz Partners.

After spending a year at Envision Digital as International President, she is now Managing Director of shared Platforms at Publicis.

Offices held within Covivio:

Independent Director

Member of the Audit Committee

Date of appointment: 24 April 2013

Date of renewal: 26 April 2017 - 20 April 2021

Expiry of term of office: General Meeting of 2025 approving the annual financial statements for the fiscal year ended 31 December 2024

Number of shares held on 31 December 2023: 7,449

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Director: Lion Re:Sources, Inc. Lion Re:Sources UK Limited

Director and Chief Executive Officer: Publicis Ré

Terms of offices expired in the last 5 years:

Director: Envision Digital International Pte. Ltd. - Singapore, Bazefield AS - Norway, Envision Digital (Netherlands) BV - Netherland, Envision Digital (Germany) Gmbh - Germany, Envision Digital UK Limited - UK

Global CEO Assistance and CEO Asia Pacific: Allianz Worldwide Partners

Member of the Board of Directors: AWP Health & Life, AWP P&C

Member of the Supervisory Board: M6 Métropole TV (public company)

Olivier Piani

Age: 69

Nationality: French

Business address: 91 bis, rue du Cherche-Midi, 75006 Paris

Main functions exercised: Chairman of OP Conseils

Skills and expertise:

Olivier Piani is a graduate of the European business school, ESCP and holds an MBA from Stanford University. He has more than 30 years of experience in real estate. After 13 years at Groupe Paribas, he joined UIC-Sofal as Chief Executive Officer to restructure and sell the company.

He joined GE Capital Real Estate in 1998, where he held the position of Chairman and Chief Executive Officer of GE Real Estate Europe from 2002 to 2008 and successfully grew the company and its pan-European real estate portfolio. He was also Chairman and Chief Executive Officer of Allianz Real Estate from 2008 to 2015.

In 2016, he decided to found OP Conseils, a real estate and finance consulting firm.

Offices held within Covivio:

Independent Director

Chairman of the Strategy and Investment Committee

Member of the Appointments and Remunerations Committee

Date of appointment: 17 April 2019

Date of renewal: 20 April 2023

Expiry of term of office: General Meeting of 2027 approving the annual financial statements for the fiscal year ending 31 December 2026

Number of shares held on 31 December 2023: 701

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Director: Prologis (foreign public company), Grosvenor

Europe (foreign company), Yam Invest (foreign company)

Terms of offices expired in the last 5 years:

Main Advisor and Chairman of the Investment Committee: Ardian Real Estate (term ended in 2021)

Predica

Paris Trade and Companies Register 334 028 123

16/18 boulevard de Vaugirard, 75015 Paris

Offices held within Covivio:

Director

Date of appointment: 31 January 2011

Date of renewal: 17 April 2015 - 26 April 2017 - 20 April 2021

Expiry of term of office: General Meeting of 2025 approving the annual financial statements for the fiscal year ended 31 December 2024

Number of shares held on 31 December 2023: 7,966,912

Other offices held within the Covivio group:

Member of the Supervisory Board: Covivio Hotels SCA (public company)

Director: B2 Hotel Invest OPPCI

Offices held outside the Covivio group:

Director: AEW Immocommercial OPCI, Fonds Nouvel Investissement 1 SICAV, Fonds Nouvel Investissement 2 SICAV, Aéroport de Paris SA (public company), Gecina SA (public company), Messidor OPCI, Frey SA (public company), Clariane SE (public company), CAA Commerces 2 OPCI, Carmila (public company), OPCI Logistis SPPICAV, Previseo Obsèques SA, Lesica, Semmaris, Fonds Stratégique de Participations SICAV, Française des Jeux (public company), Fonds immobilier Ardian Luxembourg, Défense CB3 SAS, Predi Rungis

Member of the Supervisory Board: Altarea SCA (public company), Argan SA (public company), Patrimoine et Commerce SCA (public company), Effi-Invest II SCA, Effi-Invest III SCA, Ofelia SAS, Willow, Unipierre Assurances SCPI, CA Grands Crus SAS, Sopresa SA, Interfimo SA, Preim Healthcare

Non-voting member: Siparex Associés SA

Co-General Manager: Predicare SARL

Chairman: Predica Bureaux OPCI

Terms of offices expired in the last 5 years:

Director: La Médicale de France SA (ended in 2022), CAAM Mone Cash SICAV (ended in 2022), River Ouest OPCI (ended in 2019)

Non-voting member of the Board of Directors: Tivana France Holding SAS (term ended in 2022)

Jérôme Grivet

Age: 61

Nationality: French

Professional address: 12, place des États-Unis, 92127 Montrouge

Main function exercised: Deputy CEO of Crédit Agricole SA in charge of Steering and Control

Skills and expertise:

Biography

Jérôme Grivet is a graduate of ESSEC, the Paris Institute of Political Sciences (Sciences Po), and of ENA. He spent his early career in administration (general inspection of finances, advisor to the Prime Minister for European Affairs) and went on to join Crédit Lyonnais in 1998, first as Chief Financial Officer of the retail banking business in France, and then as Director of Strategy.

He was Deputy CEO of Calyon from 2007 to 2010.

From 2010 to 2015, he served as Chief Executive Officer of Crédit Agricole Assurances and Chief Executive Officer of Predica. A member of the Executive Committee of Crédit Agricole SA, he became Assistant General Manager in charge of the Group Finance Division in 2015, then in 2021, in charge of the Steering Division.

He was appointed Deputy Chief Executive Officer in charge of Steering and Control in September 2022.

Offices held within Covivio:

Permanent representative of Predica, Director

Member of the Strategy and Investment Committee

Member of the Appointments and Remunerations Committee

Date of appointment: 31 January 2011

Date of renewal: 17 April 2015 - 26 April 2017 - 20 April 2021

Expiry of term of office: General Meeting of 2025 approving the annual financial statements for the fiscal year ended 31 December 2024

Number of shares held on 31 December 2023: None

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Deputy CEO responsible for Steering and Control and member of the Executive Committee and of the Management Committee: Crédit Agricole SA (public company)

Chairman of the Board of Directors and Director: Crédit Agricole Capital Investissement & Finance SA (CACIF)

Director: Crédit Agricole Assurances SA, CACEIS SA, CACEIS Bank France SA

Permanent representative of Crédit Agricole Assurances SA, Director: CA Immobilier

Chairman of the Supervisory Board: Fonds de Garantie des Dépôts et Resolution (FGDR - since 05/10/2023)

Director, member of the Audit and Accounts Committee and member of the Investment Committee: Nexity SA (public company)

Permanent representative of Casa, Chairman: Evergreen Montrouge SAS

Permanent representative of Crédit Agricole SA, Manager: Quentyvel SCI

Treasurer: Crédit Agricole Solidarity and Development Foundation

Terms of offices expired in the last 5 years:

Vice-Chairman of the Supervisory Board and member of the Audit and Accounts Committee: Fonds de Garantie des Dépôts et Résolution (FGDR - until 05/10/2023)

Deputy Chief Executive Officer responsible for the Steering Division: Crédit Agricole SA (public company - term ended in 2022)

Director: Clariane SE (public company - term ended in 2020)

Patricia Savin, whose reappointment as Director is subject to the approval of the Combined General Meeting of 17

April 2024

Age: 57

Nationality: French

Professional address: 6, rue Duret, 75116 Paris

Main function exercised: Partner at DS Avocats

Skills and expertise:

Biography

A graduate of Institut de Droit Public des Affaires (IDPA), and a lawyer registered with the Paris Bar, Patricia Savin holds a PhD in private law from IHEDN (Economic Intelligence Session). A Partner at DS Avocats, she heads the Environment and Sustainable Development Department where she is specifically tasked with cases linked to the Sustainable City (waste, polluted soils, biodiversity, the circular economy etc.). Patricia Savin is a member of the Council on Biodiversity and COPIL on circular economy in the French Ministry on the Environment.

As Chairwoman of the Orée association and Chairwoman of the Environment and Sustainable Development Commission of the French Bar Association (Ordre des Avocats de Paris), she is regularly consulted by the Ministries of Ecology and Justice on the draft texts under discussion.

Before joining DS Avocats, Patricia practised law with the firms Moquet Borde (which has since become Paul Hastings) and then Pardieu Brocas, before acting as co-head of the law firm Savin Martinet Associés between 2001 and 2015.

She was elected member of the French National Bar Council, of which she was Secretary General for the 2010-2013 period.

Offices held within Covivio:

Independent Director

Member of the CSR Committee

Date of appointment: 27 April 2016

Date of renewal: 22 April 2020

Expiry of term of office: General Meeting of 2024 approving the annual financial statements for the fiscal year ended 31 December 2023

Number of shares held on 31 December 2023: 205

Other offices held within the Covivio group:

Member of the Stakeholders' Committee: Covivio

Offices held outside the Covivio group:

Chairwoman: ORÉE (association)

Terms of offices expired in the last 5 years:

Member of the Audit Committee: Covivio (public company - term ended in 2021)

Daniela Schwarzer

Age: 50

Nationality: German

Professional address: Werderscher Markt 6, 10117 Berlin, Germany

Main function exercised: Member of the Executive Committee of the Bertelsmann Foundation

Skills and expertise:

Biography

Daniela Schwarzer holds a PhD in Political Economy from the Free University of Berlin and a Master's degree in Political Science and Linguistics from the University of Tübingen. She has devoted a large part of her professional life to European economic, financial and political issues. She is an acknowledged expert and advisor on European issues and Franco-German relations. Daniela Schwarzer is a member of the Executive Committee of the Bertelsmann Foundation.

She was previously Executive Director of the Open Society Foundations in Europe and Asia, the largest private donor in the world for NGOs and charities, working to defend human rights, justice and democracy. From 2016 to 2021, she led the German Council on Foreign Relations, where she is now a non-executive member of the Board.

She is also a non-executive member of the Board of Directors of BNP Paribas. She is an honorary professor at the Freie Universität Berlin, where she teaches European integration and international affairs.

Offices held within Covivio:

Independent Director

Member of the CSR Committee

Date of appointment: 21 April 2022

Expiry of term of office: General Meeting of 2026 approving the annual financial statements for the fiscal year ended 31 December 2025

Number of shares held on 31 December 2023: None

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Director, member of the Governance and Ethics Committee, the Appointments Committee, and the CSR Committee: BNP Paribas (public company)

Director: Association Notre Europe - Institut Jacques Delors, Deutsche Gesellschaft für Auswärtige Politik, Fondation Jean Monnet

Member of the Executive Committee: Fondation Bertelsmann

Terms of offices expired in the last 5 years:

None

Catherine Soubie, whose reappointment as Director is subject to the approval of the Combined General Meeting of 17 April 2024

Age: 58

Nationality: French

Professional address: 137, rue de l'Université, 75007 Paris

Main function exercised: Chief Executive Officer of Arfilia

Skills and expertise:

Biography

A graduate of ESCP Europe, Catherine Soubie started her career in 1989 at Lazard in London, then in Paris. She subsequently held various posts at Morgan Stanley in Paris before becoming Assistant General Manager of Rallye, from 2005 to 2010.

In 2010, Catherine Soubie joined Barclays where she was, until 2016, Managing Director in charge of Investment Banking France-Belgium-Luxembourg.

She is today the Chief Executive Officer of Arfilia and also independent Director on the Boards of Directors of Clariane and Sofina.

Offices held within Covivio:

Independent Director

Chairman of the Appointments and Remunerations Committee

Member of the Audit Committee

Date of appointment: 27 April 2016

Date of renewal: 22 April 2020

Expiry of term of office: General Meeting of 2024 approving the annual financial statements for the fiscal year ended 31 December 2023

Number of shares held on 31 December 2023: 686

Other offices held within the Covivio group:

None

Offices held outside the Covivio group:

Chief Executive Officer: Arfilia

Director, Chairwoman of the Audit Committee and member of the Appointments and Remunerations Committee: Clariane SE (public company)

Director, Chair of the Remuneration Committee and of the Appointments Committee: Sofina SA (public company)

Terms of offices expired in the last 5 years:

Chair: Financière Verbateam (ended 2023)

Chief Executive Officer: Alixio (ended 2021), Taddeo (ended 2021)

5 .3.2.1.4 Investment in the capital by members of the Board of Directors

Trading in Covivio shares by members of the Board of Directors and related persons in the 2023 fiscal year

Members of the Board of Directors ⁽¹⁾	Acquisitions of financial instruments	Value average (in €)	Sale of financial instruments	Value average (in €)	Number of shares at 31/12/2023 (to the company's knowledge)
Jean-Luc Biamonti	-	-	-	-	506
ACM Vie	1,051,545 shares	42.03	1,000,491 shares	52.01	8,165,592
Stéphanie de Kerdrel	-	-	-	-	0
Romolo Bardin	3,780 shares	46.30	-	-	22,088
Covéa Coopérations	48 shares	44.87	-	-	629
(persons related to Covéa Coopérations)	568,026 shares	44.87	-	-	7,364,685
Olivier Le Borgne	-	-	-	-	0
Christian Delaire	42 shares	44.87	-	-	783
Delfin SARL	-	-	-	-	0
(persons related to Delfin SARL)	2,153,326 shares	44.87	-	-	27,918,616
Giovanni Giallombardo	16,500 shares	45.0833	-	-	25,000
Alix d'Ocagne	-	-	-	-	200
Sylvie Ouziel	5,000 shares	41.9285	-	-	7,449
Olivier Piani	-	-	-	-	701
Predica	614,477 shares	44.87	-	-	7,966,912
(persons related to Predica)	27,528 shares	44.87	49,170 shares	60.1828	376,898
Jérôme Grivet	-	-	-	-	0
Patricia Savin	-	-	-	-	205
Daniela Schwarzer	-	-	-	-	0
Catherine Soubie	-	-	-	-	686
TOTAL					51,850,950

⁽¹⁾ It being specified that the information relating to Christophe Kullmann, Chief Executive Officer and Director of Covivio, is set out in Section 5.3.1.3 above.

To the company's knowledge, the non-executive corporate officers (and persons related to them) held 51.33% of the share capital at 31 December 2023.

5.3.2.2 Terms and conditions of the organisation and operation of the Board of Directors

5.3.2.2.1 Role of the Chairman of the Board of Directors

At the General Meeting of 31 January 2011, Covivio adopted the form of a société anonyme (public limited company) with a Board of Directors, separating the duties of Chairman and Chief Executive Officer. The Board of Directors regularly deliberates on the mode of governance of the company, particularly near the expiry of the terms of office of the executive corporate officers or the appointment of a new Chairman of the Board of Directors. Following the appointment on 21 July 2022 of Jean-Luc Biamonti as the new Chairman of the Board of Directors for the duration of his Directorship, the Board of Directors confirmed the choice of a separation of the duties of Chairman and Chief Executive Officer, which is part of a permanent objective of sustainable and balanced governance.

He represents the Board of Directors, working in close coordination with the Chief Executive Officer. He acts and speaks on its behalf and oversees the organisation of the Board of Directors and its Committees, as well as ensures that they are working smoothly. The development of quality dialogue with the Chief Executive Officer and Deputy CEO prior to Board meetings help to improve the operations of the Board and the efficiency of its meetings. He ensures that all Directors are always kept fully notified of any information complete and relevant to the implementation of the strategy. He leads the Board's discussions and helps to summarise its views. In close coordination with the actions taken in these matters by General Management, the Chairman ensures that the quality of the Board's relationships with the company's shareholders, major partners and customers of the Group as well as with public authorities, institutional and regulatory authorities, the media and all stakeholders in the company are maintained. The Chairman may, further to a delegation from the Board of Directors, be responsible for shareholders' relations with the Board, notably on subjects of corporate governance, and, if applicable, give an account thereto of his assignment. He also presides over the company's General Meetings and participates in the oversight of the governance of the company's subsidiaries. Moreover, he oversees the proper functioning of the audit and risk management bodies.

The Chairman provides the Chief Executive Officer and the Deputy CEO with help and advice on designing and implementing the strategy, whilst not infringing on the latter's executive responsibilities. At the request of the Chief Executive Officer and/or of the Deputy CEO, he can attend internal meetings with the company's primary executives and teams to provide clarifications on strategic issues. He also helps to promote the image and values of Covivio, both within and outside the Group.

As non-executive Chairman, he attends meetings of the Appointments and Remunerations Committee as a guest and participates in the process of recruiting new Directors. He also provides his vision and knowledge of the in-house teams when succession plans are being established.

The scope of these missions is the subject of regular dialogue between the Chairman and the Chief Executive Officer, in order to ensure a permanent complementarity of the two roles, avoiding any potential overlap and ensuring respect for the executive prerogatives of the Chief Executive Officer.

During his term of office in 2023, Jean-Luc Biamonti chaired all meetings of the Board of Directors, for which he has an attendance rate of 100%, and participated in all meetings of the Strategic and Investments Committee and those of the CSR Committee (with the exception of the meeting of 23 November 2023), as well as those of the Audit Committee and the Appointments and Remunerations Committee, of which he is a guest. In the 2023 fiscal year, Jean-Luc Biamonti's attendance was 94% for all corporate governance meetings.

Jean-Luc Biamonti also met with individual Directors on an ad hoc basis during the year and met numerous times with the members of the company's Executive Committee.

5.3.2.2.2 Main duties of the Board of Directors

The Board of Directors gives its opinion on all decisions relating to major strategic, economic, social and financial issues for the company and oversees their implementation by General Management. The Board focuses on the creation of value over the long term, in consideration of the social and environmental impacts in accordance with its corporate purpose adopted by the Board of Directors on 21 November 2019 and the statement published at the same time. To this end, it serves as guarantor of the CSR of the company and determines, upon the recommendations of the CSR Committee, the multi-year strategic directions in these areas, particularly with regard to the climate. The Board of Directors thus defined a carbon trajectory for the company in line with objectives to reduce greenhouse gas emissions by 2030.

Subject to the powers expressly reserved for the General Meetings of Shareholders and within the limits of the corporate purpose defined by the Articles of Association, the Board of Directors may seize any question affecting the operation of the company and govern its business through its deliberations. It carries out the checks and verifications that it considers necessary.

If a material investment or disposal is being considered, the Board and General Management assess the strategic interest of the transaction, including its social, societal and environmental dimensions, and ensure that the process is conducted in accordance with the best interests of the company. The company may, on this basis, set up an ad hoc Committee. Moreover, in addition to the operations listed in the Internal Regulations that specifically require the Board's prior authorisation, any material operation requires prior authorisation by the Board of Directors. Further details are given in Section 5.3.1.2 below on the limitations to the powers of the Chief Executive Officer and Deputy CEO.

The Board thus studies the investment plans and all transactions, notably relating to a sale or disposal, whose value exceeds €100 million.

In connection with the strategy it has designed, it regularly examines the financial, legal, operational, social and environmental risks and opportunities as well as the measures adopted accordingly. If necessary, it guarantees the implementation of a range of measures for preventing and detecting corruption and trafficking in influence. It is also responsible for ensuring that all executive corporate officers are implementing a non-discrimination and diversity policy, notably with regard to the gender balance within governing bodies. To this end, it determines, on the proposal of the General Management, the gender equality objectives within these governing bodies, and is informed of the methods of implementation of the objectives, with an action plan and the time horizon within which one these actions will be carried out, as well as the results obtained annually.

The Board is also kept informed of changes in the market and competitive environment and of any significant events in the domain of corporate, social and environmental responsibility for the company. Furthermore, it receives regular updates on the financial situation, cash flow situation and commitments of the company. It is the Board's responsibility to approve the company's financial communication policy and to oversee its relevance and quality.

The Board also defines whether the General Management of the company is assumed by the Chairman or by another physical person who may or may not be a Director, appointed by the Board and with the title of Chief Executive Officer, and provides the reasons for its decision. As such, it appoints the executive corporate officers responsible for managing the company for this purpose, and determines a selection process that guarantees the presence of at least one person of each gender among the candidates as Deputy CEO. The Board sets the limits on the powers of the Chief Executive Officer and the Deputy CEO. The Board of Directors may also appoint one or more Non-voting members and a Vice-Chairman.

The Board implements the authorisations and delegations of powers and/or authority granted to it by the General Meeting and may, if necessary, sub-delegate them, under the conditions provided for by legal and regulatory provisions.

It rules on the authorisation of signature in relation to regulated agreements submitted to it and implements a procedure to regularly assess whether the agreements relating to current transactions completed under normal conditions continue to meet these conditions.

The Board of Directors defines the remuneration policy of the corporate officers upon recommendation of the Appointments and Remunerations Committee: in this respect, the Board sets the terms of allocation of the remuneration granted to the Directors, and it sets the amount and the methods used for the calculation and payment of the Chairman's remuneration, if applicable, and determines and sets out the reasons underlying its decisions in relation to the remuneration paid to the Chief Executive Officer and the Deputy CEO, which are set out in Section 5.3.4.2 below.

The Board approves the annual and half-year financial statements and the forward-looking management documents and convenes General Meetings.

Each year, prior to publication of the Universal Registration Document, the Board examines on a case-by-case basis the situation of each of the Directors and then discloses to the shareholders the results of this examination in order for the independent Directors to be identified.

Finally, it ensures that shareholders and investors receive relevant, balanced and instructive information on the company's strategy, development model, consideration of significant non-financial concerns as well as its long-term outlook.

5.3.2.2.3 Agreements submitted to the Board of Directors

5.3.2.2.3.1 Agreements referred to in Article L. 225-37-4, 2° of the French Commercial Code

In accordance with the provisions of Article L. 225-37-4, 2° of the French Commercial Code, we draw your attention to the following agreements occurring in the 2023 fiscal year, either directly or through intermediaries, between one of the corporate officers or shareholders with more than 10% of voting rights, on the one hand, and, on the other, a company controlled by the company under the definition of Article L. 233-3 of the French Commercial Code, with the exception of standard transactions and transactions carried out under normal conditions:

―	Shareholders' agreement signed on 21 March 2023 between Covivio and ACM Vie in the presence of Hotel N2.

5.3.2.2.3.2 Procedure for evaluating standard agreements entered into under normal conditions

Pursuant to Article L. 22-10-12 of the French Commercial Code, at its meeting on 21 November 2019, the Board of Directors introduced a procedure for an annual review of standard agreements entered into under normal ⁽¹⁾ conditions by a Committee established within the company.

The procedure involves setting up an internal Committee which meets annually and the remit of which is:

―	to review criteria for determining standard agreements entered into under normal conditions defined in the internal charter of the Covivio group on related-party agreements in order to ensure they are appropriate and in line with market practices;
―	to analyse in more detail the extent to which financial conditions are normal; and
―	to submit the agreements that meet these criteria to the Board for approval.

The list of all agreements reviewed by the Committee as well as the results of the evaluation and any proposed amendments to the criteria of these agreements are presented to the Board of Directors each year when it meets to discuss the annual financial statements.

Thus:

―	should the Evaluation Committee consider that an agreement signed by two companies within the Covivio group constitutes a related-party agreement, it is then subject to the procedure for auditing related-party agreements referred to under Article L. 225-38 of the French Commercial Code;
―	if the Evaluation Committee is uncertain of the characterisation of an agreement, it shall submit it for the evaluation of the Board of Directors. Anyone with a direct or indirect interest in the agreement does not take part in its evaluation.

Following the implementation of this procedure, the Board of Directors updated the Covivio group's internal charter on regulated agreements published on the company's website to incorporate these provisions, it being specified that Proposal no 4.6 of AMF Recommendation no 2012-05 of 2 July 2012, amended on 29 April 2021, to appoint an independent expert when the signing of a regulated agreement is likely to have a significant impact on the balance sheet or the company and/or group results. The Covivio group's internal charter on related-party agreements and on the procedure for the valuation of agreements relating to day-to-day transactions concluded under normal conditions was reviewed by the Board of Directors on 19 October 2023, which re-organised its structure to allow greater readability and updated the list of agreements considered commonplace within the group.

In accordance with the procedure, at a meeting on 15 February 2024, the Board of Directors was provided with a list of all standard agreements entered into under normal conditions within the Group having been reviewed by the Committee, as well as the results of its evaluation on the characterisation of all of these agreements as standard and entered into under normal conditions.

5.3.2.2.4 Rules on the composition of the Board of Directors

5.3.2.2.4.1 General rules on the composition of the Board of Directors and the appointment of Directors

The rules governing the appointment and dismissal of members of the Board of Directors are the legal and statutory rules set out in Articles 12 et seq. of the company's Articles of Association and included in Section 6.5.1, complemented by certain provisions of the Rules of Procedure. They are described below, it being stipulated that:

―	the Board of Directors is comprised of between three and eighteen Directors, subject to statutory exemptions, and appointed by the Ordinary General Meeting of Shareholders;
―	Directors may be dismissed at any time by the General Meeting, without indemnity or prior notice.

Chairman and Vice-Chairman

The Board elects as Chairman one of its members, who must be a physical person. In addition to the Chairman, the Board of Directors may elect one or more Vice-Chairmen from among its members. The Vice-Chairman acts on the Chairman's behalf in the event of incapacity or absence. In a case of temporary incapacity, this delegation is given for a limited period and may be renewed. If the Chairman dies, this delegation is valid until the appointment of a new Chairman of the Board.

The Board sets the term of office for the Chairman and the Vice-Chairman which may not exceed the term of their appointment as Director. In case of absence from the Board of Directors, the Chairman and the Vice-Chairman are replaced by one of the Directors present, appointed during the meeting. The Chairman and the Vice-Chairman may be re-elected and may be dismissed by the Board at any time.

Following the resignation of Jean Laurent from all his governance mandates, chairmanship of the Board of Directors was entrusted to Jean-Luc Biamonti on 21 July 2022. In particular, the Board of Directors determined that his extensive knowledge of the company and its sectors of activity, as well as his solid professional experience, would be an asset to the company and would allow for a balanced transition in the appointment of a new Chairman.

The term of office of Leonardo Del Vecchio as Vice-Chairman, appointed to this position by the Board of Directors on 31 January 2011 and renewed on 17 April 2015 and 17 April 2019 for a period of four years, ended on 27 June 2022 following his death. He was not replaced.

⁽¹⁾ Excluding agreements entered into with companies directly or indirectly wholly owned by Covivio.

Honorary Chair

The Board of Directors may appoint as Honorary Chair a natural person who is the former Chairman of the Board of Directors on an honorary basis. This appointment lasts for an indefinite duration, taking into account their importance as well as their contribution to the company's development.

The Honorary Chair is invited to participate in sessions of the Board of Directors dedicated to the major strategic directions of the company, without having a casting vote. In this manner, they can be seen to communicate the same information as the Directors and are subject to the same duties of loyalty, diligence, confidentiality and abstention obligation as the Directors.

The Honorary Chair does not receive remuneration in respect of the fiscal year that they hold this office and does not benefit from specific means in this respect.

The term of office of Jean Laurent as Honorary Chair, appointed to this position by the Board of Directors on 21 July 2022, ended on 12 January 2023 following his death. He was not replaced.

Non-voting members

The Board of Directors may appoint one or more Non-voting members (physical persons or legal entities). It defines their term of office and any remuneration if they are assigned a particular mission. The Non-voting members of the Board of Directors attend meetings of the Board as non-voting observers and may be consulted by the Board. They must be called to every meeting of the Board of Directors. They receive a portion of the remuneration allocated by the General Meeting to the Board of Directors, according to the same conditions for distribution as those defined for the Directors.

The Non-voting members may also be invited to attend meetings of the Committees created within the Board of Directors. The Non-voting members are bound by the same general confidentiality obligation the Directors are bound to, as well as the same duties of loyalty and diligence and abstention obligation on the shares.

The term of office as non-voting member of Sergio Erede, appointed to this position by the Board of Directors on 17 April 2015 and renewed on 17 April 2019 for a period of four years, as well as that of Ariberto Fassati, appointed on 20 February 2019, expired at the close of the Combined General Meeting of 20 April 2023.

Lead Director

Given the separation of the functions of the Chairman and Chief Executive Officer, the Board of Directors decided that there is no need to appoint a lead Director.

Secretary of the Board

The Board of Directors also appoints a Secretary, who may be a Board member or an external appointee. It defines the Secretary's duties, which it may terminate at any time. The Secretary ensures that procedures relating to the operation of the Board and its Committees are followed and pays particular attention to the application of the mechanism to prevent conflicts of interest, even if they are only potential. He records the minutes at the meetings of the Board and the Committees where he acts as Secretary.

These functions are currently held by Yves Marque, the Chief Operating Officer of Covivio, who was appointed by the Board of Directors on 31 January 2011, and reappointed on 17 April 2015 and 17 April 2019 and 20 April 2023 for a term of four years expiring at the end of the General Meeting of Shareholders convened in 2027 to approve the financial statements for the fiscal year ending 31 December 2026.

Employee representatives

The Board of Directors does not include any Director representing employees. This lack of representation on the Board is due to the fact that Covivio's number of employees and that of its subsidiaries are below the thresholds set by legal provisions.

Employee shareholder representatives

Since employee shareholder investment in Covivio is below the threshold of 3% of the capital set by the provisions of Article L. 225-23, paragraph 1, of the French Commercial Code, the Board of Directors does not include any Director representing employee shareholders.

However, two employees sitting on the Social and Economic Committee are invited to each meeting, and attend with access to the same information as the Directors.

5.3.2.2.4.2 Duration and staggering of terms of office

The term of office of Directors is, with some exceptions, four years, allowing shareholders to vote more frequently on their appointment and renewal. Given the company's desire to have a high proportion of independent Directors sitting on its Board, and pursuant to the rule set forth in Article 10.5.6 of the Afep-Medef Code, as revised, on the loss of an independent Director's capacity after holding office for more than twelve years, the term of office of Directors may exceptionally be reduced so that their renewal is proposed within the limit of their independence.

The term of a Director expires at the end of the Ordinary General Meeting called to approve the financial statements for the previous year, held in the year in which the term of the said Director expires.

To promote the Board's harmonious renewal, the Directors' terms of office have been staggered over time since 2015.

The shareholders' regular renewal of Directors has thus been facilitated, both due to the limitation of their terms of office to four years, and to the staggering of expiration dates for the various tenures, allowing the General Meeting to vote on several Directorships every year.

Status of the staggered expiration of terms of office

5.3.2.2.4.3 Selection procedure for independent Directors

The Board of Directors, on the recommendation and/or opinion of the Appointments and Remunerations Committee, reviews its composition and that of its Committees regularly, and at least once a year when terms of office expire.

The selection process for independent Directors, conducted by the Appointments and Remunerations Committee, is based on the following principles:

―	the search for a balance in the composition of the Board and that of its Committees, particularly in terms of diversity (representation of women and men, independence of members, skills and expertise, international experience, nationalities, age, seniority, staggering of terms of office, specific needs identified within a Committee);
―	the search for complementary profiles adapted to the company's challenges and strategy as well as to the structure and evolution of its capital;
―	the strictest confidentiality of the selection work and in the approach of any potential candidate.

The selection procedure described in Article 7 of the Internal Rules of the Board of Directors, is implemented on the occasion of the renewal of the terms of office of independent Directors or the appointment of new independent Directors when one or several seats become vacant or when the Board decides to modify or expand its composition.

Procedure for renewing the terms of office of independent Directors

The Appointments and Remunerations Committee assesses the advisability of renewing the terms of office of independent Directors, taking into account the balance sought in the composition of the Board and its Committees, as well as with regard in particular to their attendance at governance meetings and their effective contribution to governance work.

Following this analysis, the Chairman of the Appointments and Remunerations Committee asks the independent Directors, if applicable, whether they wish to have their term of office renewed within a reasonable period of time before expiry.

The Appointments and Remunerations Committee informs the Board of Directors of its recommendation.

In the event of a favourable recommendation from the Appointments and Remunerations Committee, the Board submits to the approval of the next General Meeting of Shareholders the renewals of the independent Directors' terms of office that are about to expire.

Procedure for the appointment of new independent Directors

When new independent Directors are recruited, the Board orders the Appointments and Remunerations Committee to put forward candidates.

The Appointments and Remunerations Committee draws up an inventory of the skills in place and defines the additional skills sought in the future Director, taking account of the Board of Directors' diversity policy. In addition to the technical expertise sought, candidates should have solid experience as active Management or Executive Committee members, be willing and able both to contribute critical and constructive opinions to discussions and contribute to decision-making.

The Appointments and Remunerations Committee conducts its own studies on potential candidates, if appropriate with the help of a specialised firm, before the candidate is approached.

The candidates preselected by the Appointments and Remunerations Committee are met by the Chairman of the Board of Directors, the Chairman of the Appointments and Remunerations Committee, the Chief Executive Officer and, to the extent possible, by other Directors. On this occasion, after having presented the expectations of the company as well as the rights and duties of any Director, they also check the candidate is available, has no convictions, family ties with a corporate officer of the company and conflicts of interest, as well as compliance with the rules governing multiple directorships.

Under the terms of its work, the Appointments and Remunerations Committee selects the candidate(s) for presentation to the Board, giving reasons for its choices.

Following a presentation of the profiles by the Chairman of the Appointments and Remunerations Committee and on the latter's opinion and/or recommendation, the Board selects the final candidate.

The appointment of the Director selected by the Board or the ratification of his/her co-option in the event of a provisional appointment by the Board, is subject to the approval of the General Meeting of Shareholders.

Overview of the procedure for selecting future independent Directors

5.3.2.2.4.4 Absence of convictions, family ties and conflicts of interest

As part of the review of the annual returns filed by the corporate officers in response to a request made by the company while preparing this Universal Registration Document, the company's corporate officers have declared to the company, pursuant to Articles 12.1 and 12.2 of the EC delegated Regulation 2019/980 of 14 March 2019:

―	that they have not been convicted of fraud during at least the last five years;
―	that they have not been involved in bankruptcy, receivership or liquidation proceedings during at least the last five years;
―	that they have not been subject to any official public incrimination or sanction by a statutory or regulatory authority (including appointed professional bodies) at least the last five years;
―	that they have not been forbidden by a court to serve as a member of an administrative, management or supervisory body, or from being involved in managing or leading a company's business during at least the last five years;
―	that they have no close family ties with a corporate officer of the company;
―	not be aware of potential conflicts of interest between his or her duties towards the company, and his or her private interests and/or other duties.

5.3.2.2.5 Diversity policy of the Board of Directors

5.3.2.2.5.1 Principles

Each year, in the context of the review of its composition and of the renewal and/or appointment proposals submitted for approval to the Annual General Meeting, the Board of Directors questions the desired balance of its composition and of the governance Committees set up, notably in terms of diversity. Its aim at all times is to improve gender balance, the independence of its members, the range of skills, expertise, international experience, ages and geographical origins among members in order to provide shareholders with a guarantee that all assignments are being performed with the necessary independence and objectiveness.

This diversity, which is a source of dynamism and high performance, provides a guarantee of the quality of the debates and decisions of the Board and contributes to the efficiency of the work carried out by the Committees.

To achieve this, the Board of Directors has put in place a policy regarding diversity in the composition of the governance bodies:

Criteria	Targeted objectives	Implementation and results achieved during the 2023 fiscal year
Representation of women and men	- Seeking a balanced representation of women and men on the Board and Committees: → the proposal of women changed appreciably since the end of 2013 to gradually reach 40% at the end of the Combined General Meeting of 27 April 2016.	- The Board of Directors considers that the percentage of female Directors corresponds to a balanced representation of men and women:
		- 43% women on the Board
		- 50% women on the Audit Committee
		- 67% women within the CSR Committee
		- 33% within the Appointments and Remunerations Committee
		which, of course, can still improve with future changes.
		- The Appointments and Remunerations Committee and the CSR Committee are both chaired by women.
Duration and staggering of terms of office	- Securing continuity within the Board via the regular renewal of appointments limited to 4 years on an overlapping basis.	- The term of office of Directors is set to four years by the Articles of Association, allowing shareholders to vote on their appointment and reappointment with sufficient frequency.
		- The terms of office have been staggered since 2015, allowing shareholders to vote on several terms of office each year.
Independence of members	- Having a high proportion of independent members, guaranteeing an independence of judgement.	- After Jean-Luc Biamonti's loss of independence on 31 January 2023, the independence rate was reduced from 57% to 50%.
		- However, the Board of Directors considers that the proportion of independent Directors of 50%, in line with the threshold recommended by the Afep-Medef Code, is balanced with regard to the composition of the company's shareholder structure.
Skills and experience	- Promote a diversity of complementary skills, expertise and experience, both in terms of the various positions held and the different business sectors.	- In particular, the Board of Directors, supported by the Appointments and Remunerations Committee, ensures that its members have a wide range of varied, complementary and balanced skills, thereby enabling an in-depth understanding of the development challenges facing the company and a decision-making process which is informed, independent, and high-quality.
	- Combine the skills required to implement the company's strategy and its growth objectives.	- These skills are described in detail in Section 5.3.2.1.3 together with the Directors' biographies.
	- Promote training in the company's specialities, business lines, sector of activity and corporate social responsibility issues, particularly climate issues.	- Considering the growing challenges in terms of CSR, especially the climate, the CSR Committee organises regular workshops dedicated to specific subjects in order to further explore them.
Age and seniority	- Seeking a balance between ages.	- The Directors are aged between 45 and 70.
	- Seeking a balanced distribution in terms of seniority on the Board.	- The average age is 57.
		- The Board believes that its composition is balanced with, on the one hand, Directors who have already served for several years and have an in-depth knowledge of the Group and, on the other hand, Directors who bring new experience that can serve the interests of the Group and in particular its growth.
Nationality	- Favour the recruitment of profiles with a diversity of geographical origins and knowledge of the main markets of the company (Directors of foreign nationality or international culture and/or with international experience in the company's strategic markets).	- The Board of Directors boosted its international credentials in 2022 with the appointment of Daniela Schwarzer and the co-optation of Delfin S.à.r.l, represented by Giovanni Giallombardo, following the death of Leonardo Del Vecchio. The Board now has five different nationalities (French, Italian, German, Monegasque and Luxembourgish).
		- The majority of Directors have international experience.
		- 4 Directors are based abroad.

The Board of Directors oversees all changes in its composition and, to the extent possible, in the composition of its Committees to ensure compliance with this policy.

Given the aspects mentioned above, and in view of the diversity policy implemented by the company, the Board of Directors believes that its composition in the 2023 fiscal year is appropriate in view of the backgrounds and skills of the Directors, which it deems balanced and suitable for the aims of the company and the structure of its equity.

As such, the renewals that will be proposed to the Combined General Meeting of 17 April 2024 (as presented in Section 5.3.2.1.2) with regard to terms of office that are set to expire will maintain the desired balances in the diversity of the Board's composition and the complementary nature of the required skills.

5.3.2.2.5.2 Independence

The Internal Regulations of the company stipulate that the Board of Directors must include a significant proportion of independent Directors and specify in Article 6 that an independent Director is one who has no relationships of any kind with the company, its group or its Management that might compromise his or her independent judgement.

Each year, based on the recommendations of the Appointments and Remunerations Committee, the Board of Directors devotes one item on its agenda to assessing the independence of its members in terms of the independence criteria implemented by the company.

In assessing the independence of each Director, the Board of Directors initially draws on the criteria set out in the Afep-Medef Code as a reference, which states that an independent Director must meet all of the following independence criteria:

Criterion 1	Employee or corporate officer within the previous five years
	He or she is not and has not been within the previous five years:
	• an employee or executive corporate officer of the company;
	• an employee, executive corporate officer or Director of a company consolidated by the company;
	• an employee, executive corporate officer or Director of the parent company of the company or of a company consolidated by that parent company.
Criterion 2	Cross appointments
	He or she is not an executive corporate officer of a company in which the company directly or indirectly holds the office of Director, or in which an employee designated as such or an executive corporate officer of the company (currently or within the last five years) holds a position as Director.
Criterion 3	Significant business relationships
	He or she is not a significant client, supplier, commercial banker, financier, consultant:
	• of the company or its Group;
	• or for which the company or its Group represents a significant share of its business.
	Determining whether the relationship with the company or its Group is significant or not is a debated by the Board and the quantitative and qualitative criteria having led to this assessment (continuity, commercial dependence, exclusivity, etc.) are set out in the annual report.
Criterion 4	Family ties
	He or she has no close family ties to a corporate officer.
Criterion 5	Statutory Auditors
	He or she has not served as a Statutory Auditor for the company during the past five years.
Criterion 6	Term of office of more than 12 years
	He or she has not been a Director of the company for more than 12 years. A Director ceases to be an independent Director on the twelfth anniversary of his or her appointment.
Criterion 7	Status of non-executive corporate officer
	A non-executive corporate officer cannot be considered to be independent if he or she receives variable remuneration in cash or shares or any remuneration connected to the performance of the company or the Group.
Criterion 8	Significant shareholder status
	Directors representing significant shareholders of the company or of its parent company may be considered as independent if not involved in the oversight of the company. However, above a threshold of 10% of the share capital or voting rights, the Board, further to a report by the Appointments Committee, must systematically question the independent status of a Director by taking into account the composition of the company's share capital and the existence of potential conflicts of interest.

As a second step, and in accordance with Article 10.4 of the Afep-Medef Code, beyond the mere observation of compliance or non-compliance with these criteria, the Board seeks, in particular, to establish whether a Director, who could be presumed independent in terms of the Afep-Medef Code, has no other important ties (frequent or materially significant professional or personal ties in relation to Covivio's operating costs) which may restrict his or her freedom of analysis and of decision-making. Conversely, the Board also seeks to establish whether a Director, who may be presumed non-independent according to one of the criteria set out in the Code, is not considered as free of constraints, if the criterion in itself does not lead to any loss of independence with respect to the company's particular situation.

Taking into account the recommendations of the AMF and the HCCG, the Board also assesses, where appropriate, the material or non-material nature of the business relationships between the Directors and the company or its group, particularly with regard to the type of relationship and amounts involved therein.

The Board has adopted a multi-criteria approach to the material nature of a business relationship, with a focus on qualitative analysis. To this end, it took into account all of the following criteria:

Qualitative criterion

―	Significance of the business relationship for the Director and the company (potential economic dependence, exclusivity or influence of the business relationship within the sector, etc.).
―	Structure of the relationship, including the position of the Director concerned in the contracting company (seniority of the mandate as Director, existence of an operational function within the entity concerned, direct decision-making power over the contracts constituting the business relationship, direct interest for the Director or contract-related remuneration paid to the Director, etc.).
―	Term and continuity of the business relationship.

Quantitative criterion

―	Share of the company's turnover in the business relationship with the entities to which the Director is related.

Jean-Luc Biamonti having been appointed Director of Covivio by the Combined General Meeting of 31 January 2011, he reached the threshold of 12 years of service on 31 January 2023, thus losing his status as an independent Director on the Board, within the meaning of Article 10.5.6 of the Afep-Medef Code.

Following the assessment of the independence of the Directors on 21 February 2023, the Board of Directors decided, upon the proposal of the Appointments and Remunerations Committee and in view of the following observations, to maintain the independent status in 2023 of Christian Delaire, Alix d'Ocagne, Sylvie Ouziel, Olivier Piani, Patricia Savin, Daniela Schwarzer and Catherine Soubie.

Christian Delaire	Christian Delaire has been a member of the Board of Directors in a personal capacity since 17 April 2019. He meets all of the aforementioned Afep-Medef criteria and, in particular, is not in a direct or indirect business relationship and has never held any executive position within Covivio or a company of its group or under its management. He has no dealings with members of the Board of Directors, Executive Managers or majority shareholders that may call into question the criteria-based analysis. The Board of Directors therefore considers Christian Delaire as an independent Director.
Alix d'Ocagne	Alix d'Ocagne has been a member of the Board of Directors in a personal capacity since 13 February 2020. She meets all of the aforementioned Afep-Medef criteria and, in particular, is not in a significant direct or indirect business relationship and has never held any executive function within Covivio or a company in its group or under its management. She has no dealings with members of the Board of Directors, Executive Managers or majority shareholders that may call into question the criteria-based analysis. The Board of Directors therefore considers Alix d'Ocagne to be an independent Director.
Sylvie Ouziel	Sylvie Ouziel has been a member of the Board of Directors in a personal capacity since 24 April 2013. She meets all of the aforementioned Afep-Medef criteria and, in particular, is not in a direct or indirect business relationship and has never held any executive function within Covivio or a company in its group or under its management. She has no dealings with members of the Board of Directors, Executive Managers or majority shareholders that may call into question the criteria-based analysis. The Board of Directors therefore considers Sylvie Ouziel to be an independent Director.
Olivier Piani	Olivier Piani has been a member of the Board of Directors in a personal capacity since 17 April 2019. He meets all of the aforementioned Afep-Medef criteria and, in particular, is not in a direct or indirect business relationship and has never held any executive position within Covivio or a company of its group or under its management. He has no dealings with members of the Board of Directors, Executive Managers or majority shareholders that may call into question the criteria-based analysis. The Board of Directors therefore considers Olivier Piani as an independent Director.
Patricia Savin	Patricia Savin has been a member of the Board of Directors in a personal capacity since 27 April 2016. She meets all of the aforementioned Afep-Medef criteria and, in particular, is not in a direct or indirect business relationship and has never held any executive function within Covivio or a company in its group or under its management. She has no dealings with members of the Board of Directors, Executive Managers or majority shareholders that may call into question the criteria-based analysis. The Board of Directors therefore considers Patricia Savin to be an independent Director.
Daniela Schwarzer	Daniela Schwarzer has been a member of the Board of Directors in a personal capacity since 21 April 2022. She meets all of the aforementioned Afep-Medef criteria and, in particular, is not in a direct or indirect business relationship and has never held any executive function within Covivio or a company in its group or under its management. She has no dealings with members of the Board of Directors, Executive Managers or majority shareholders that may call into question the criteria-based analysis. The Board of Directors therefore considers Daniela Schwarzer to be an independent Director.
Catherine Soubie	Catherine Soubie has been a member of the Board of Directors in a personal capacity since 27 April 2016. She meets all of the aforementioned Afep-Medef criteria and, in particular, is not in a direct or indirect business relationship and has never held any executive function within Covivio or a company in its group or under its management. She has no dealings with members of the Board of Directors, Executive Managers or majority shareholders that may call into question the criteria-based analysis. The Board of Directors therefore considers Catherine Soubie to be an independent Director.

With 50% of the Board being independent Directors, the company has met the recommended threshold of the Afep-Medef Code in terms of independent Directors.

In line with AMF Recommendation no 2012-02 of 9 February 2012, revised on 14 December 2023, the table below shows the situation of the independent members of the Board of Directors in light of the independence criteria defined by the Afep-Medef Code, it being stipulated that √ represents an independence criterion that has been met and X represents an independence criterion that has not been met.

Criteria used by Afep-Medef Code	Criterion 1: Employee or corporate officer during the 5 previous years	Criterion 2: Cross mandates	Criterion 3: Significant business relationships	Criterion 4: Family link	Criterion 5: Statutory Auditors	Criterion 6: Mandate length exceeding 12 years
Jean-Luc Biamonti	√	√	√	√	√	X
Romolo Bardin	√	√	√	√	√	√
Christian Delaire	√	√	√	√	√	√
Delfin SARL, represented by Giovanni Giallombardo	√	√	√	√	√	√
Predica, represented by Jérôme Grivet	X	√	X	√	√	√
ACM Vie, represented by Stéphanie de Kerdrel	X	√	X	√	√	√
Christophe Kullmann	X	X	√	√	√	√
Covéa Coopérations, represented by Olivier Le Borgne	√	√	X	√	√	√
Alix d'Ocagne	√	√	√	√	√	√
Sylvie Ouziel	√	√	√	√	√	√
Olivier Piani	√	√	√	√	√	√
Patricia Savin	√	√	√	√	√	√
Daniela Schwarzer	√	√	√	√	√	√
Catherine Soubie	√	√	√	√	√	√

Criteria used by Afep-Medef Code	Criterion 7: Status of the non -executive corporate officer	Criterion 8: Significant shareholder status	Qualification adopted by the Board of Directors
Jean-Luc Biamonti	_√	√	Non-independent
Romolo Bardin	N/A	X	Non-independent
Christian Delaire	N/A	√	Independent
Delfin SARL, represented by Giovanni Giallombardo	N/A	X	Non-independent
Predica, represented by Jérôme Grivet	N/A	√	Non-independent
ACM Vie, represented by Stéphanie de Kerdrel	N/A	√	Non-independent
Christophe Kullmann	N/A	√	Non-independent
Covéa Coopérations, represented by Olivier Le Borgne	N/A	√	Non-independent
Alix d'Ocagne	N/A	√	Independent
Sylvie Ouziel	N/A	√	Independent
Olivier Piani	N/A	√	Independent
Patricia Savin	N/A	√	Independent
Daniela Schwarzer	N/A	√	Independent
Catherine Soubie	N/A	√	Independent

Following the assessment of the independence of the Directors on 15 February 2024, the Board of Directors decided, upon the proposal of the Appointments and Remunerations Committee, to maintain, in 2024 the independent status of Christian Delaire, Alix d'Ocagne, Sylvie Ouziel, Olivier Piani, Patricia Savin, Daniela Schwarzer and Catherine Soubie. Subject to approval by the Combined General Meeting of 17 April 2024 of the resolutions on renewing the Directorships that are due to expire, the proportion of independent Directors would be maintained at 50%.

5.3.2.2.5.3 Female representation

Occupational gender equality and diversity are key to effectiveness and economic and social performance and have been among Covivio's core concerns over recent years. With 43% of the Board of Directors being women, the company has fulfilled its legal obligations.

5.3.2.2.5.4 Nationalities

Of the Directors on the Board, 29% are non-French: two Italians (including one holding dual citizenship with Luxembourg), one person from Monaco and one German. This diversity, which takes into account the geographical exposure of the company's activities, gives the Board great openness in its discussions, and allows a broadening of the analysis angle of the subjects examined during the meetings.

5.3.2.2.5.5 Training

The company ensures that new Directors complete an induction programme, adapted to their individual skillsets, experience and expertise to enable them to gain a better understanding of Covivio and its business sector, and to grasp its strategic priorities and challenges. As part of this programme, the Directors who were unfamiliar with the markets and business sectors have several meetings with the Chief Executive Officer (CEO), Deputy CEO, Chief Operating Officer, Risk, Compliance, Internal Audit and Control Department Director and the Chief Financial Officer, and can also benefit, if they deem it necessary, from additional training on the specificities of the company, its business lines and its sector, and the range of social, societal and environmental challenges that the company faces, in particular with regard to the climate and CSR. New Directors are also informed, notably via the communication of the company's Articles of Association and the Internal Rules of the Board and its Committees, of the functioning of its governance as well as the rules of stock market ethics and prevention of conflicts of interest.

Given the rise in CSR and particularly climate issues, the CSR Committee organises work sessions dedicated to certain themes, which are thus deepened: for example, in 2023, the progress of the Group's carbon trajectory as well as the levers for reducing carbon emissions, the greening of debt, biodiversity, the compliance of buildings with the new regulations in force (tertiary decree), the carbon offsetting market, the European taxonomy and also the professional equality and diversity policy. The Chairwoman of the CSR Committee provides a detailed report on this work to the Board, and regularly distributes records of the Committee's work to all Directors. Furthermore, each edition of the Board's strategic seminar, which takes place every two years for two days, also helps further the economic and financial environment in which the company evolves, as well as its various real estate markets. At the last edition of the Board's strategic seminar, held in Milan in June 2023, there were visits to some of the Group's real estate assets, and their environmental performance was assessed. This was also an opportunity to bring in a financial analyst whose recommendation was not favourable to Covivio, in order to understand his angle of analysis and his external view of the Group's portfolio and performance, including in terms of governance. The seminar was also an opportunity to listen to a company with a B-Corp label and better understand the impact of such an approach.

Dedicated sessions on CSR topics and in particular on climate and biodiversity issues are also planned for 2024, during which various external and internal experts will speak to the Directors.

5.3.2.2.5.6 Presence of the Chief Executive Officer (CEO) on the Board

The appointment in 2012 of Christophe Kullmann (who is also the company's Chief Executive Officer) as a Director has enabled him to be even more directly involved in the company's strategy, for which he is responsible at the same level as the other Directors.

5.3.2.2.6 Rules of operation and organisation of the Board of Directors

5.3.2.2.6.1 Procedure to prevent conflicts of interest

Article 10 of the Internal Regulations of the Board of Directors establishes a procedure to prevent conflicts of interests, even potential ones, in the presentation of investment projects submitted to the Board and/or to the Strategy and Investment Committee.

Prior to sending the investment files, and if there are serious reasons to believe that a member of the Board or the Strategy and Investment Committee is in a situation presenting a conflict of interest, the company's Chief Operating Officer ensures the prevention of any conflict of interest for the latter, by providing the member with information on each of the investment files submitted, thus allowing the member to determine in good faith the existence or absence of a conflict of interest. It is further hereby stated that each member of the Board or the Strategy and Investment Committee is under an obligation to notify the company's Chief Operating Officer, at all times, of any intention to take a position, directly or indirectly, on any investment file that he or she believes, in good faith, is likely to interest and be considered by the company.

Any member of the Board or Strategy and Investment Committee who fails to confirm the absence of a conflict of interest will not receive the presentation of the investment projects in question and will not be able to participate in the Board or Strategy and Investment Committee meeting during the discussion of the corresponding agenda items.

In the event that, despite these precautions, the members of the Board or the Strategy and Investment Committee would be privy to the investment files and would believe, on reading the latter, that they are in a situation of conflict of interest, they must notify it to the Chief Operating Officer as soon as possible prior to the governance meeting. As such, they will not be able to attend the Board or Strategy and Investment Committee meeting during the discussion of the agenda items subject to the conflict of interest. This fact will also be reported to the Chairman of the Board and/or to the Chairman of the Strategy and Investment Committee.

If a conflict of interest situation arises during the review of the investment project, the member concerned must, as soon as he or she is aware of the conflict, notify the Chairman and the Chairman of the Strategy and Investment Committee. He or she will no longer attend the Board or Strategy and Investment Committee meetings devoted to a discussion of the agenda items relating to this investment project, and more generally, shall be under strict duty of confidentiality.

If a conflict of interest situation ceases to exist, the Board or Strategy and Investment Committee member may once again participate in the deliberations of the Board or the Strategy and Investment Committee as of receipt, by the Chairman of the Strategy and Investment Committee and the Chairman of the Board, of notification of the conflict of interest's disappearance from the member concerned.

Any decision by the Board regarding conflicts of interest will be recorded in the Board minutes of the Board of Directors and of the Strategy and Investment Committee.

This system for the prevention of conflicts of interest may also be implemented when files are submitted to the Audit Committee.

In 2023, as part of the presentation and review of a real estate asset swap submitted to the Strategy and Investment Committee and the Board, the company was made aware of the existence of a potential conflict of interest. It was managed in accordance with the provisions set out above.

5.3.2.2.6.2 Ethical guidelines for the members of the Board of Directors

The rules of ethics and duties of the members of the Board of Directors are defined in Article 5 of the company's Internal Regulations.

Skills	Before taking up their duties, Board members must be familiar with the legal or regulatory texts governing their duties, the company's Articles of Association and the Board's Internal Regulations. All Board members must ensure that they fully comply with legal requirements related to the holding of multiple terms of office (no more than four other terms of office in public companies outside of the Group, including foreign companies), and must inform the Board of terms of office as Director held in other companies, including their participation in the Board Committees of any French or foreign companies. Whenever a Board member also holds an executive position, he or she must, in addition to seeking authorisation from the Board prior to accepting any other new term of office in a public company outside the Group, refrain from accepting more than two other terms of office in public companies, including foreign companies, outside the Group.
Shareholding	The company shares held by each member of the Board at the time he or she takes office must be recorded in registered form (pure or administered). The same will be true of any shares acquired subsequently. As an internal guideline and as a way to reflect their involvement in the company's management, the members of the Board must hold a number of companies shares equivalent to around a year's worth of remuneration.
Transparency	In accordance with the provisions of Article L. 621-18-2 of the French Monetary and Financial Code and the applicable provisions of the General Regulations of the AMF, each member of the Board is required to declare to the company and to the AMF any transaction, in particular any purchase, sale, subscription, conversion, borrowing, lending or exchange transactions, that he or she has completed involving company shares or debt securities, as well as any derivatives or other related financial instruments. This declaration must be made within three trading days after the execution of such transactions, when the total amount of transactions executed during the calendar year is greater than €20 thousand. Furthermore, any agreement referred to in the provisions of Articles L. 225-38 et seq. of the French Commercial Code is subject to the formalities regarding communication, authorisation and control stipulated by Articles L. 225-38 to L. 225-42 of the same Code.
Duty of loyalty	Each person participating in the work of the Board, whether Board members or permanent representatives of a legal-entity Board member, must make their best efforts to determine in good faith whether a conflict of interest, even potential ones, exists. Such person is bound to inform the Chairman of the Board thereof as soon as he or she learns of any situation that could constitute a conflict of interest between (i) him or herself or the company for which he or she is the permanent representative, or any company of which he or she is an employee or executive corporate officer, or any company of the same group and (ii) the company or any company in its Group. In the event of a permanent conflict of interest, the Board member concerned (or the permanent representative of the legal entity concerned that is a member of the Board) must tender their resignation. Moreover, each member of the Board is required to make a sworn statement on the existence of any conflict of interest, even potential, at the time of his or her appointment, and each year in response to a request in this regard by the company during preparation of the Universal Registration Document.
Duty of diligence	Each member of the Board is required to devote the time and attention necessary to the performance of his or her duties. He or she must be diligent and, to the extent possible, attend all of the meetings of the Board and, as the case may be, the Committees of which he or she is a member as well as the General Meetings of Shareholders.
Duty of confidentiality	In the case of non-public information acquired in connection with his or her duties and deemed to be confidential, each Director (it being noted for all intents and purposes that there is no distinction between a Director who is a natural person and the permanent representative acting as an agent of the legal entity Director), as well as any person attending the Board and Committee meetings will be bound to professional secrecy, beyond the simple obligation of discretion provided for by Article L. 225-37 of the French Commercial Code, and must strictly preserve its confidentiality, even after the completion of their office. Each permanent representative is nevertheless authorised to communicate to the legal entity that has named them, through their executive corporate officer, information that they have gathered and that is strictly necessary to the completion of their duties as a Director. The latter is then authorised to communicate this information, in a limited capacity, to other people within the Director that is a legal entity, on the condition that they take all suitable measures to ensure these persons strictly preserve its confidentiality and comply with the rules governing the communication and use of privileged information, as specified hereinafter in the guide on the prevention of insider dealing, in the Annexe of the Internal Regulations. This strict obligation of confidentiality, which applies in principle, whether or not the Chairman has explicitly stated the confidentiality of the information, covers the content of debates and deliberations of the Board and the Committees as well as all information and documents presented therein, or that are sent to them in preparation for their work, or of which they may have gained knowledge within the scope of their duties.
Duty of abstention on securities	Each member of the Board must refrain from trading company securities pursuant to the rules on insider dealing and from trading securities of companies on which he or she has privileged information due to his or her duties, pursuant to the principles stipulated by the Guide on the Prevention of Insider Trading attached to the Board's Internal Regulations.

5.3.2.2.6.3 Evaluation of the work of the Board of Directors

The Board assesses its ability to meet the expectations of shareholders who have entrusted it with the mandate of managing the company, periodically reviewing its composition, organisation and working methods, as well as those of its Committees.

In accordance with the provisions of the Afep-Medef Code and its Internal Regulations, the Board holds an annual discussion on its working methods and that of its Committees and carries out a formal evaluation at least every three years, with the help of an external consultant.

The assessment of the Board's work aims to review the Board of Directors' working methods (and where appropriate, the relevance of the governance procedures implemented by the company), verify that important matters are correctly prepared and discussed, and may also allow for an opinion on the measure of each Director's actual contribution to the Board's work. At this time, non-executive Directors may also evaluate the performance of the Chairman, the Chief Executive Officer and the Deputy CEO.

In accordance with the recommendations of the Afep-Medef Code, at the end of the 2013 fiscal year, the company carried out a first independent assessment carried out by the Egon Zehnder consultancy, and then three other internal assessments carried out in 2016, 2019 and end 2022. The latest internal evaluation consisted of an anonymous and exhaustive questionnaire prepared on the basis of the template created by Afep and adapted to the specificities of Covivio, sent by the Legal Officer to all Directors and Non-voting members, reviewing its composition and organisation, the operating procedures of the Board and the Committees during the 2022 year and offering Directors the option to express their opinion on the actual individual contribution of each of the Directors. During this assessment, no Director requested an individual interview with the Chief Operating Officer. To guarantee impartiality, the Chairman of the Board of Directors and the Chief Executive Officer (CEO) decided to abstain, and the results given to the members during the session of 21 February 2023 excludes them from the calculations.

The overall analysis of this fourth evaluation underscores the quality of the debates and relationships within the Board of Directors, particularly with regard to freedom of expression, the atmosphere of trust (given the quality of the relationships within the Board and with the Chief Executive Officer, and the successful management of potential conflicts of interest), and the smooth transition between in 2022 departing and entering Chairmen of the Board.

This confirmed that the Board of Directors is deemed well-balanced, efficient, with a positive momentum, and with all the required tools to perform its duties.

Measures have been identified by the Appointments and Remunerations Committee in order to respond to the suggestions and areas for improvement identified at the end of 2022 by the Directors and non-voting members. Thus, CSR topics, particularly on carbon emissions and biodiversity, were explored during working sessions of the CSR Committee and then the Board of Directors. At their request, Directors now systematically have access to the CSR Committee's working files. During the seminar, which brings together the members of the Board every two years over two days, presentations clarified Covivio's societal positioning, and also provided the external vision of a financial analyst on the company. Lastly, in response to a request made during the assessment of the Board's work, a meeting of the Board of Directors was held at the end of 2023 on a Covivio asset in the Paris region (the CB 21 Tower in La Défense), with a presentation and a tour of the asset.

The Appointments and Remunerations Committee and the Board of Directors will closely monitor the continued implementation of these measures.

5.3.2.2.6.4 Organisation of the Board of Directors

Governance calendar

The provisional governance timetable for the year N+1 is sent to members, to any Non-voting members, to representatives of the Social and Economic Committee, as well as to the Statutory Auditors during the meeting of the Board of Directors called to review and approve the half-year financial statements. The final governance timetable is sent to them in September.

Meetings

The Board of Directors meets as often as required by the interests of the company and whenever the Chairman deems necessary, upon notice from the Chairman.

A simultaneous French/Italian interpretation system may be used during meetings, upon request by certain members.

In addition, since 2015, the Board meets every two years for two full days for a strategic seminar, which is also an opportunity to visit some of the Group's real estate holdings and assess their environmental performance.

Deliberation of the Board of Directors excluding the presence of executive corporate officers

The Internal Regulations of the Board provide for the possibility for the Directors to meet at least once per year, during a dedicated meeting or before, or after a meeting, without the executive corporate officers being present.

In 2023, these sessions took place at the end of the meetings of 21 February and 23 November, after the report on the work of the Appointments and Remunerations Committee and the review - deliberations and votes - of the decisions concerning the components of executive remuneration, allowing them to continue their discussions on other matters.

Form of notice of the meeting

Notices of meeting, to Directors and the other attendees, are made by any written method at least five days in advance. This five-day period may be reduced if one third of the Directors agree to a shorter notification period. Meetings are held at the company's registered office or any other location indicated in the notice of meeting.

Other attendees

The Deputy CEO, as well as certain members of the Group's Executive Committee and its Legal Director and the CEO's management representative attend as guests at Board meetings.

Any Non-voting members, appointed by the Board of Directors, attend, if applicable, Board of Directors meetings on an advisory basis.

In accordance with the provisions of Article L. 2312-72 of the French Labour Code, two representatives of the Social and Economic Council, designated by said Council, attend Board meetings on an advisory basis. These representatives have the same documents at their disposal as those provided to Board members.

The Statutory Auditors are called to attend meetings during which the annual and half-yearly corporate or consolidated financial statements are examined or prepared.

The Secretary of the Board also attends the meetings but has no vote.

Depending on the items on the agenda, the Chairman may deem it useful to invite employees or outside consultants to attend.

Information for the members of the Board

The company provides the Directors and any Non-voting members with the information they need to effectively participate in the Board's work in order to enable them to perform their role in appropriate conditions. This ongoing information includes all relevant items concerning the company, including press articles and financial analysis reports.

At each Board meeting, the Chairman informs the members of the main facts and significant events affecting the Group's business since the previous Board meeting. In addition, the files to be sent to the Directors, and to any Non-voting members of the Board of Directors and employee representatives attending Board meetings, and, if relevant, to the Statutory Auditors, which contain the information and documents required to perform their mission (including all documents relating to transactions that the Board is required to review in order to enable the Board to assess the impact), are prepared before each Board meeting and made available to attendees in a timely manner, with a reasonable notification period before the date of the meeting.

Since 2015, the company has been using a digital platform wherein all governance files are made available in a secure digital format along with a historical electronic management of the documentation of the Board and Committees (files, minutes, Internal Regulations, etc.) with complete confidentiality. Since 2018, electronic tablets have also been provided at Board meetings in order to avoid printing paper copies of files.

Board deliberations

The Board of Directors validly deliberates only if at least one half of its members are present. Subject to the applicable laws and regulations, the meetings of the Board of Directors may be held via videoconference or telecommunications or any other method allowed under the law and the regulations under the conditions defined by the Internal Regulations adopted by the Board of Directors.

Decisions are adopted by a majority of the members present or represented. In the event of a tied vote, the meeting's Chairman does not have the casting vote.

The deliberations of the Board of Directors are recorded in minutes prepared by the Secretary of the Board at the end of each meeting. After approval, they are transcribed in the register of minutes of Board meetings.

5.3.2.3 Composition of the Board of Directors in 2023

During the 2023 fiscal year, the Board of Directors met five times, convened by its Chairman. The average duration of the meetings of the Board of Directors was two hours.

5.3.2.3.1 Attendance of the members of the Board of Directors

In 2023, the average attendance of Directors at Board meetings was 94%. It was 95% for all governance meetings.

The details by meeting are shown below:

Date	Attendance rate
21 February 2023	93%
19 April 2023	93%
20 July 2023	93%
19 October 2023	93%
23 November 2023	100%

5.3.2.3.2 Main work of the Board of Directors

In addition to matters falling within its legal or regulatory powers, the Board of Directors, in its main areas of activity, discussed and decided on the following points, with a focus on taking its decisions in consideration of social issues and the environmental impact of the company's activities. Thus, during a real estate investment, the environmental performance of the asset is always presented to the members of the Board of Directors. Following adoption of the company's Purpose, the Board regularly analyses its decisions in light of it.

During the strategic seminar held over two days in Milan in June 2023, the Directors had the opportunity to discuss, with the members of the Executive Committee, in particular the macro and real estate environment of Covivio, as well as on the competitive environment, and have defined medium-term action plans linked to the major strategic directions.

Members of the Board have been systematically informed about the work, advice/recommendations and decisions of the Strategy and Investment Committee, the Appointments and Remunerations Committee, the Audit Committee and the CSR Committee, as well as the work and opinions of the Statutory Auditors. The Chief Executive Officer regularly reported to the Board on the delegations that had been granted.

In accordance with the recommendations of the Afep-Medef Code, the Board of Directors deliberated on matters concerning the remuneration paid to executive corporate officers in their absence during the presentation of the proposals made by the Appointments and Remunerations Committee.

During the 2023 fiscal year, the Board's work notably focused on the following areas:

Monitoring of the Group's strategies and activities	• Review of the strategic directions of the Group, particularly in light of the economic and financial environment and the evolution of the real estate markets.
	• Regular updates on the economic, financial and real estate environment.
	• Presentation of redevelopment, sale and portfolio sharing of real estate assets authorised by the Strategic and Investments Committee.
	• Approval of asset disposals and swaps.
	• Regular progress reports on the various projects previously authorised.
	• Regular briefings on the progress of business.
	• Regular information on the change in the Group's activity, its portfolio, its financial position, its financial indicators, its environment, its stock market performance and valuation and its cash and cash equivalents.
	• Decision to delist from the Italian stock exchange.
Corporate governance	• Review of the composition of the Board of Directors and Committees with regard to the terms of office expiring in April 2023 and 2024.
	• Approval of proposals to renew the terms of office of Directors expiring in April 2023 and 2024.
	• Decision not to renew the terms of office of the two non-voting members expiring in April 2023.
	• Decision to renew the term of office of the Chairman of the Board of Directors.
	• Decision to renew the terms of office of Committee members expiring in April 2023.
	• Annual review of the independence of the Directors with regard to the criteria defined by the Afep-Medef Code.
	• Debate on the functioning of the Board.
	• Review of the results of the internal assessment of the organisation and functioning of the Board of Directors and its Committees and presentation of the main suggestions and areas for improvement identified by the Directors and non-voting members.
	• Reports of the delegations granted by the Board of Directors to the Chief Executive Officer and/or the Deputy CEO.
	• Evaluation of whether Giovanni Giallombardo's meets requirements in areas of honourability, integrity, professionalism and anti-money laundering.
	• Approval of updates to the Board's Internal Regulations.
	• Communication of the governance agenda for 2023 and 2024, including financial communication and related abstention periods.
General Meeting	• Convening of the Combined General Meeting of 20 April 2023: approval of its agenda, draft resolutions and terms of the various reports of the Board of Directors made available to shareholders.
	• Designation of Christophe Kullmann as Deputy Director in order to chair the General Meeting in the potential absence of the Chairman and Vice-Chairman of the Board.
	• Delegation granted to the Chief Executive Officer to answer written questions from shareholders at the Annual General Meeting.
	• Delegations granted to the Chief Executive Officer and/or the Deputy CEO to implement certain resolutions of the Combined General Meeting of 20 April 2023.
Remuneration	• Approval of the remuneration elements and criteria for executive corporate officers submitted for approval of the Combined General Meeting of 20 April 2023.
	• Approval of the remuneration policy for corporate officers submitted for approval to the Combined General Meeting of 20 April 2023.
	• Approval of the components of the compensation of the Chairman of the Board of Directors when he is reappointed.
	• Approval of the CSR criteria and objectives for long-term incentive schemes for executive corporate officers.
	• Approval of the free share plans allocated to corporate officers and Group employees, and approval of the attribution terms and conditions. 5
Monitoring of the Group's strategies and activities	• Review of the strategic directions of the Group, particularly in light of the economic and financial environment and the evolution of the real estate markets.
	• Regular updates on the economic, financial and real estate environment.
	• Presentation of redevelopment, sale and portfolio sharing of real estate assets authorised by the Strategic and Investments Committee.
	• Approval of asset disposals and swaps.
	• Regular progress reports on the various projects previously authorised.
	• Regular briefings on the progress of business.
	• Regular information on the change in the Group's activity, its portfolio, its financial position, its financial indicators, its environment, its stock market performance and valuation and its cash and cash equivalents.
	• Decision to delist from the Italian stock exchange.
Financial management	• Examination and approval of the Covivio group's consolidated financial statements and the parent company's financial statements for the fiscal year ended 31 December 2022.
	• Review of the company's financial position and cash position.
	• Determination of the allocation of the 2022 income proposed to the Combined General Meeting of 20 April 2023 and the amount of the dividend.
	• Approval of the proposed dividend payment option in shares and information on the results thereof.
	• Approval of the 2023 guidance and its revision.
	• Update on liquidity and financing.
	• Examination and approval of the financial statements and management planning documents and related reports.
	• Authorisations for various bond issues.
	• Authorisation to update the EMTN (Euro medium-term notes) programme.
	• Examination and approval of the consolidated financial statements for the first half of 2023.
	• Regular updates on the progress of the 2023 budget.
	• Monitoring the landing of the 2023 budget and adoption of the budget for 2024.
	• Approval of financial press releases.
	• Implementation of the share buyback programme.
	• Report on the use of the authorisation of sureties, endorsements and guarantees granted during the year and renewal of the annual authorisations granted to the Chief Executive Officer to issue sureties, endorsements and guarantees.
	• Approval of refinancing and maturity renewal transactions.
	• Reports on the final allocations of free shares delivered in 2023.
	• Report of the results of the investment by ESU Covivio employees of the profit-sharing scheme for fiscal year 2022 (plus the matching contribution) in company shares.
Risk management	• Specific analysis of the risk of activism in support of the intervention of an external advisor.
	• Monitoring of the measures for preventing and detecting corruption and insider trading.
	• Validation of the risk management policy through the review of the risk mapping associated with the company's activity.
	• Review of the action plans implemented for the major risks identified.
	• Approval of the 2024 audit plan.
	• Examination of the results of the internal assessment of the review of agreements relating to current transactions concluded under normal conditions.
	• Monitoring of permanent establishment control activities in Italy and analysis of the vigilance body's annual report.
	• Reminder to Directors of the obligations incumbent on anyone holding an executive office (and any persons closely associated with them) under the regulations on market abuse, especially including rules on refraining from (i) disclosing inside information and (ii) trading in securities when in possession of inside information.
	• Information of the Directors on their new obligations related to the update of the internal procedure of the Italian company Central Sicaf in terms of conflicts of interest.
Corporate and social responsibility	• Examination and approval of the Consolidated Statement of Non-Financial Performance.
	• Monitoring the progress of the ESG policy.
	• Approval of a draft resolution on the "Say on Climate" submitted for the approval of the Combined General Meeting of 20 April 2023.
	• Review of the results of the Commitment barometer.
	• Approval of the diversity policy applied to members of the Board and Committees, its implementation methods and the results obtained.
	• Approval of the non-discrimination and diversity policy, particularly concerning gender balance on management bodies.
	• Approval of the company's policy on gender equality and equal pay.
	• Monitoring the actions of the Covivio Foundation and its future challenges.
	• Examined the list of social and environmental risks inherent to Covivio, as highlighted by an analysis of the risk mapping, and approved the action plans to be implemented.
Related-party agreements	• Review of all related-party agreements signed and/or authorised in 2022.
	• Authorisation of continuing application of the related-party agreements signed and authorised during previous fiscal years, the performance of which continued into 2023.
	• Examination and authorisation to enter into new related-party agreements with regard to their interest for the company.
	• Approval of the update of the charter on related-party agreements and on the procedure for the valuation of current agreements entered into under normal conditions.

5.3.2.3.3 Support of the Stakeholders' Committee in the work of the Board of Directors

In order to monitor, challenge and renew the commitments associated with expressing its corporate purpose in 2019 and to lead a long-term reflection on the company's future challenges, Covivio created a Stakeholders' Committee in 2020. Chaired by Bertrand de Feydeau, former independent Director of Covivio, former Chairman of the Fondation Palladio and the Fondation des Bernardins, it currently brings together the following persons:

―	Stephan de Faÿ, former Chief Executive Officer of EPA Bordeaux Euratlantique, now Chief Executive Officer of Grand Paris Aménagement;
―	Jade Francine, co-founder of Growth, Wemaintain;
―	Alexande Labasse, Chief Executive Officer of Atelier Parisien d'Urbanisme;
―	Sonia Lavadinho, Founding Director of Bfluid, Institute for forward-looking research and expertise in mobility and territorial development;
―	Jérôme Ruskin, Founder and Chief Executive Officer of Usbek and Rica;
―	Patricia Savin, Partner at DS Avocats, Chairwoman of Orée, independent Director of Covivio;
―	Jean Paul Viguier, Architect, Chairman of Viguier architecture urbanisme paysage.

These well-known personalities in the fields of environment, sociology and anthropology, digital technology, urban construction and regional planning are responsible, alongside Jean-Luc Biamonti, Chairman of the Board of Directors, Christophe Kullmann, Chief Executive Officer, Olivier Estève, Deputy CEO and Yves Marque, Chief Operating Officer, for helping Covivio anticipate the ongoing social, societal and environmental changes in order to integrate them into its strategy, its products and its services.

In the post-Covid environment, the Stakeholders Committee has chosen to conduct a forward-looking reflection on ongoing disruptions that may affect Covivio's strategy and products. This work was carried out through a constant back and forth between long-term forward-looking thinking and practical cases on Covivio's past, current and future projects.

The Stakeholders Committee's forward-looking thinking, particularly on nature in the city and biodiversity, the reversibility of buildings, mixed uses, urban mobility and the relationship with oneself and others, make it possible to inspire or reinforce the real estate bias on Covivio's development projects, and incorporate the changes underway into strategic choices.

An initial report on the work of the Stakeholders' Committee was provided to Covivio's Board of Directors on 20 October 2022.

At the end of the meeting, the Board of Directors approved the Stakeholders Committee's proposals for changes, aimed at:

―	refocusing the Committee's mission on the exploration and analysis of major trends and weak signals directly or indirectly impacting Covivio's scope of intervention;
―	reviewing the distribution of roles between Stakeholders Committee and CSR Committee;
―	continuing to move back and forth between forward-looking thinking and its application to real estate projects, by exploring the issue of reversibility and by extending the review horizon of projects to other buildings than those of Covivio;
―	reviewing its composition in order to integrate new profiles.

The Committee met twice in 2023. Its work focused on the erosion of social cohesion, ways of making room for the most vulnerable people in a city, concrete ways to create diversity and a collective vibe, and allow city dwellers the opportunity to slow down. A new report on the work of this Committee will be provided to Covivio's Board of Directors in 2024.

5.3.3 Specialist Committees of the Board of Directors

To improve the quality of its work, and in line with corporate governance principles, the Board of Directors relies on specialised Committees tasked with researching and preparing for certain Board decisions by submitting their opinions, proposals or recommendations.

Following in particular the redefining of the role of the Board of Directors, which, under the impetus of the Pacte law, acts not only in the pursuit of the company's corporate interest but also by taking into consideration social and environmental issues related to its activity, the Board of Directors decided on 21 July 2021 to create a new Committee to assist it in the conduct of its work in terms of environmental, societal and social responsibility and to ensure that CSR issues are taken into account in the Group's strategy and its implementation.

The Board of Directors now relies on the work of four specialised Committees set up within it: the Audit Committee, the Appointments and Remunerations Committee, the Strategy and Investment Committee and the CSR Committee.

The Board of Directors' Internal Regulations, available in full on the company's website, determine the powers and operating procedures of each of these Committees. The work of these Committees is outlined below.

The composition of the specialised Committees shows the company's desire to promote the presence of independent Directors on these Committees.

The operations of the Audit Committee, the Appointments and Remunerations Committee and the Strategy and Investment Committee are overseen by Yves Marque in his capacity as Secretary of the Board, and that of the CSR Committee by Joséphine Lelong-Chaussier in her capacity as Legal Officer.

In 2023, the average attendance of Directors at meetings of all the Committees was 96%.

Summary of the composition of Committees

^* Independent members at the closing date of the Board of Directors' report on corporate governance

Subject to the approval by the Combined General Meeting of 17 April 2024 of the renewal of the terms of office of Patricia Savin and Catherine Soubie as independent Directors, the Board of Directors, on the proposal of the Appointments and Remunerations Committee, does not consider any change in the short term in the composition of the Governance Committees as presented above.

Structuring between the missions of the Committees

The cross-functionality of CSR, through the plurality of areas it covers, requires interactions between the CSR Committee and the other committees, which are essential for the Board of Directors to make decisions, which in its capacity as guarantor of the CSR strategy, determines, on the recommendations of the CSR Committee, the multi-year strategic guidelines in terms of social and environmental responsibility, particularly with regard to the climate.

Thus, the Specialised Committees are involved in determining and monitoring the CSR strategy, each on the subjects falling within their area of expertise, while ensuring the coordination of their respective activities in order to guarantee a cross-functional approach to CSR issues.

These Committees coordinate on the subjects studied during the fiscal year and report to the Board of Directors to propose their recommendations in this area.

5.3.3.1 The Audit Committee

Its missions, composition and organisation are governed by Articles L. 823-19 et seq. of the French Commercial Code (applicable in 2023). The company's Internal Regulations comply with the provisions on the Audit Committee stipulated by the aforementioned articles.

^* Independent members

5.3.3.1.1 Composition

Following the renewal of his Directorship by the Combined General Meeting of 20 April 2023, the Board of Directors renewed Christian Delaire as Chairman of the Audit Committee.

The composition of the Audit Committee was maintained at four members for the 2023 fiscal year, including one member of Italian nationality.

The independent Directors represent 75% of the members: Christian Delaire, Sylvie Ouziel and Catherine Soubie.

The Audit Committee is chaired by an independent Director.

The Audit Committee members are chosen for their financial or accounting expertise, appraised in light of their educational backgrounds and professional experience mentioned in their professional careers. Christian Delaire, Chairman of the Audit Committee, has built his career around finance and real estate. Romolo Bardin has a high level of expertise in terms of management and finance. Sylvie Ouziel has acquired financial skills through her different leadership roles, which have provided her with knowledge of the operations of large global groups. The diverse and multidisciplinary background of Catherine Soubie provides her with a wealth of financial and banking experience.

Furthermore, Jean-Luc Biamonti, in his capacity as Chairman of the Board of Directors since 21 July 2022, takes part in all Audit Committee meetings, but has no vote.

No member of the Audit Committee is also an executive corporate officer.

5.3.3.1.2 Operation

The Audit Committee meets at the initiative of its Chairman or at the request of the Chairman of the Board of Directors. It meets at least twice a year to review the half-yearly and annual financial statements and, in principle, before Board meetings when the agenda includes a decision that the Board deems within the jurisdiction of the Audit Committee as determined by the Board.

The Chairman of the Audit Committee sets the agenda for the Committee's meetings, directs the discussions and organises the vote on motions submitted to the Committee.

The Committee members are notified of meetings by any written method at least five days in advance (unless the matter is urgent) and the Committee's documentation is forwarded at least two days prior to the Committee meeting.

The Audit Committee has an average of three to four days to review the financial statements before they are reviewed by the Board.

The presence of at least half of the members of the Audit Committee is required for meetings to be valid. The meetings are also attended by the Chief Financial Officer, the Accounts Director and the Risk, Compliance, Audit and Internal Control Director. Members who are represented are included in the calculation of the quorum.

The opinions of the Audit Committee are adopted by simple majority vote of the members present or represented, and the Committee reports on its work at the next Board meeting.

5.3.3.1.3 Missions

Under the terms of Article 24 of the Internal Regulations, the Audit Committee must monitor matters related to the preparation and control of accounting and financial information. In particular, it is responsible for:

―	monitoring the process of preparing financial information and, where applicable, making recommendations to ensure its integrity;
―	reviewing the accounting methods and conditions for valuing the assets of the Covivio group;
―	reviewing the preliminary consolidated and parent company financial statements prepared by the company before they are presented to the Board;
―	preparing Board decisions on the monitoring of internal audits;
―	monitoring the effectiveness of internal control and risk management systems, as well as internal audits involving procedures relating to the creation and processing of accounting, financial and extra-financial information; to do this, it reviews the information in the Board of Directors' management report on the internal control and risk management mechanisms and, where applicable, makes comments, giving its opinion on the organisation of the Internal Audit and Risk Management Department;
―	monitoring the statutory audit of the annual and consolidated financial statements by the Statutory Auditors;
―	ensuring the independence of the Statutory Auditors;
―	reviewing the agreements executed between the company and those who hold a direct or indirect investment in the company;
―	reviewing appointment proposals involving the Statutory Auditors and issuing recommendations on the Statutory Auditors to be proposed for approval by the General Meeting;
―	ensuring oversight of the management of the information to be provided to the shareholders and the markets and verification of its clarity;
―	reviewing press releases on financial results;
―	reviewing significant risks and off-balance sheet commitments;
―	giving their approval for services other than the certification of the financial statements provided by the Statutory Auditors to the company before such services are completed; and
―	examining the additional report of the Statutory Auditors drawn up pursuant to the provisions of Article 11 of Regulation (EU) 537/2014.

The Audit Committee reports to the Board of Directors on its work, expresses any opinions or suggestions it deems advisable, and informs the Board of any points that require a Board decision. In performing its tasks, the Audit Committee may examine the scope of the consolidated companies and, where applicable, the reasons for which companies are not included. It may use the services of external experts as required, ensuring the objective nature of the advice given. In 2023, the Audit Committee called on real estate experts to provide their insight into the investment and leasing market and their approach to asset valuation.

5.3.3.1.4 Work of the Audit Committee in 2023

The Audit Committee met three times, with a 100% attendance rate by its members.

Date	Attendance rate
16 February 2023	100%
17 July 2023	100%
21 September 2023	100%

During these meetings, the members of the Audit Committee were addressed by the Statutory Auditors, as well as the Chief Financial Officer and the Director of Risk, Compliance, Audit and Internal Control, who attend all meetings.

Several specific meetings were also held between the Statutory Auditors and these Directors which were not attended by General Management.

The review of the financial statements by the Audit Committee included a presentation by the Statutory Auditors who stressed the essential points, not only concerning the results but also the accounting options used, and a presentation from the Risk, Compliance, Audit and Internal Control Director describing the company's risk exposure, including social and environmental risk, and significant off-balance sheet commitments. The Audit Committee works in consultation with the Risk, Compliance, Audit and Internal Control Director, with regular ongoing dialogue on how risks and risk developments are perceived operationally.

At its meetings in 2023, the Audit Committee examined the following issues in particular. The Chairman of the Audit Committee reported to the Board of Directors on the Committee's work and its recommendations.

Meeting of 16 February 2023	• Presentation of the analysis conducted by real estate experts on the investment and leasing market and discussions on their approach to asset valuation.
	• Property valuation report.
	• Review of the highlights of the 2022 fiscal year and financial indicators at 31 December 2022.
	• Summary of portfolio rotation in 2022.
	• Overseeing pipeline developments and the amount of committed funds at risk.
	• Update on debt and covenants.
	• Examination of the parent company and consolidated financial statements for the fiscal year ended 31 December 2022.
	• Presentation by the Statutory Auditors of their work on the annual financial statements.
	• Review of the planned press release on the financial income.
	• Update on the publication in the Universal Registration Document of the final eligibility figures and alignment with the revenue and capex taxonomy.
Meeting of 17 July 2023	• Property valuation report.
	• Review of key events of the first half-year 2023 and financial indicators as at 30 June 2023.
	• Summary of portfolio turnover for the first half-year 2023.
	• Overseeing pipeline developments and the amount of committed funds at risk.
	• Update on debt and covenants.
	• Review of the consolidated financial statements as at 30 June 2023.
	• Presentation by the Statutory Auditors of their work on the half-year financial statements.
	• Review of the planned press release on the financial income.
	• Presentation of fees relating to services other than the certification of financial statements (SACC).
Meeting of 21 September 2023	• Update on the organisation and activity of Risk, Compliance, Audit and Internal Control Management.
	• Review of internal control tools and systems in place within the Group.
	• Focus on the incident database and major incidents.
	• Review of the risk management system including the new risk mapping, risk prioritisation (including CSR) and associated action plans.
	• Monitoring of the 2023 audit plan.
	• Presentation by the Statutory Auditors of their review of internal control and their audit approach on operational activities, information systems, CSR and cybersecurity.
	• Approval of the 2024 audit plan.
	• Update on financial covenants and financing risks.

During the meeting of 21 September 2023, a meeting was held between the Statutory Auditors and the members of the Audit Committee, at which the company's management was not present. On this occasion, the Statutory Auditors highlighted the quality of their relationship with Management and the financial teams.

5.3.3.2 The Appointments and Remunerations Committee

The role of the Appointments and Remunerations Committee is to ensure that the Board of Directors is in the best possible position to determine remuneration policy and all remuneration and benefits for the executive officers. Its scope also includes making recommendations to the Board on the composition of the executive bodies, the appointment of new Directors, the renewal of the terms of office due to expire and succession plans for the executive corporate officers.

^* Independent members

5.3.3.2.1 Composition

Following the renewal of his Directorship by the Combined General Meeting of 20 April 2023, the Board of Directors renewed Olivier Piani as a member of the Appointments and Remunerations Committee.

The composition of the Appointments and Remunerations Committee was maintained at three members for the 2023 fiscal year. Independent Directors account for 67% of members: Catherine Soubie and Olivier Piani.

The Appointments and Remunerations Committee invites the Chairman of the Board of Directors to its meetings.

It does not include any executive corporate officers. However, the Chief Executive Officer is consulted by the Appointments and Remunerations Committee on the subjects of appointments and succession.

The composition of this Committee, chaired by an independent Director, and the discussions that take place between this independent Director and the other independent members of the Board of Directors, ensure the adequate representation of the interests of the various shareholders of the company. In addition, pursuant to the provisions of the Afep-Medef Code, the Chairman of the Board of Directors is involved in the work of the Committee on succession planning for executive corporate officers.

Considering the absence of Directors representing both employees and employee shareholders (as specified in Section 5.3.2.2.4.1 hereinabove), no member of the Appointments and Remunerations Committee is an employee Director.

5.3.3.2.2 Operation

The Appointments and Remunerations Committee meets at the initiative of its Chairwoman or at the request of the Chairman of the Board of Directors. It meets at least twice a year and, in principle, before Board meetings when the agenda involves making a decision within the scope of the duties assigned to the Appointments and Remunerations Committee by the Board.

The Chairwoman of the Appointments and Remunerations Committee or, in her absence, the Chairman of the Board of Directors sets the agenda for the Committee's meetings. She presides over the discussions and organises the vote on the matters submitted to the Appointments and Remunerations Committee.

The Appointments and Remunerations Committee members are notified of meetings by any written method at least five days in advance (unless the matter is urgent), and the Committee's documentation is forwarded at least two days prior to the Committee meeting.

The presence of at least half of the members of the Appointments and Remunerations Committee is required for meetings to be valid, in the understanding that members who are represented are included in the calculation of the quorum.

The opinions of the Appointments and Remunerations Committee are adopted by simple majority vote of the members present or represented, and the Committee reports on its work at the next Board meeting.

5.3.3.2.3 Missions

Under Article 20 of the Internal Regulations, the Appointments and Remunerations Committee is responsible for:

―	evaluating any candidate for appointment to the Board or to the position of Chief Executive Officer or Deputy CEO, searching for or assessing possible candidates and expressing an opinion and/or recommendation to the Board, taking into consideration the desirable balance among Board members based on the composition of and changes in the company's shareholders;
―	assessing the advisability of reappointments, in particular, in the case of Directors, based on their regular attendance at governance meetings and their actual contribution to the work of the Board and Committees;
―	supervising the establishment of succession plans for the executive corporate officers;
―	proposing the appointment or renewal of the term of the Chairman of the Audit Committee;
―	proposing the total budget and terms for the remuneration awarded to each Board member, which will be submitted for the approval of the General Meeting;
―	formulating proposals for the remuneration of all corporate officers (including Board members) the Chairman, Chief Executive Officer and Deputy CEOs (the amount of fixed remuneration and definition of the rules for variable remuneration, ensuring that these rules are consistent with the annual assessment of the performance of the corporate officers and with the company's medium-term strategy, as well as monitoring the annual application of these rules);
―	issuing a preliminary opinion on any proposal for exceptional remuneration proposed by the Board to remunerate one of its members to whom it has assigned a mission or task pursuant to Article L. 225-46 of the French Commercial Code;
―	making proposals to the Board, as necessary, on stock-option programmes and the allotment and award of free shares;
―	giving the Board an opinion on the qualifications of Board members based on the company's independence criteria;
―	making recommendations on the financial conditions for termination of corporate offices.

The Committee also looks into retirement schemes for the company's management and employees, the tax arrangements for different remuneration methods, as well as changes to such arrangements, and the potential succession of various executive corporate officers. It may call on external consultants, while ensuring the objectivity of the Board concerned. However, the Appointments and Remunerations Committee did not consider it necessary to use it in 2023.

The Appointments and Remunerations Committee works closely with the Chief Operating Officer, who is the head of the company's Human Resources Department. He attends Committee meetings as a guest and Secretary.

5.3.3.2.4 Work of the Appointments and Remunerations Committee in 2023

The Appointments and Remunerations Committee met twice, with 100% attendance rate by its members.

Date	Attendance rate
16 February 2023	100%
14 November 2023	100%

In its 2023 meetings, the Appointments and Remunerations Committee examined the following subjects in particular. The Chairwoman of the Appointments and Remunerations Committee reported to the Board of Directors on the Committee's work and its recommendations.

Meeting of 16 February 2023	• Review of the composition of the Board of Directors: proposal to renew the Directorships expiring in 2023 and proposal not to renew the terms of office of non-voting members.
	• Review of the independence of Directors: proposal to reiterate the independence of the seven independent Directors in office.
	• Remuneration of executive corporate officers: review of the amount of the 2022 bonus, the 2022 long-term incentive, the criteria for the allocation of the 2023 bonus, the amount paid in respect of the 2019 long-term incentive plan performance conditions.
	• Proposal of free share plans for Group employees.
Meeting of 14 November 2023	• Review of the composition of the Board of Directors: proposal to renew the Directorships expiring in 2024 and discussions on the replacement of a Director with regard to her future loss of independence during the exercise of her third term of office.
	• Proposal of free share plans for Group employees.
	• Review of the succession plan for executive corporate officers.

5.3.3.3 The Strategy and Investment Committee

The Strategy and Investment Committee is in charge of studying and preparing for the Board of Directors' deliberations on strategy, investments and disposals. All Directors are informed of its meetings and agenda and receive the documents sent to members.

^* Independent members

5.3.3.3.1 Composition

Following the renewal of their Directorships by the Combined General Meeting of 20 April 2023, the Board of Directors renewed Olivier Piani as Chairman of the Strategy and Investment Committee, as well as Jean-Luc Biamonti and Olivier Le Borgne, permanent representative of Covéa Coopérations, as members of this Committee.

The composition of the Strategy and Investment Committee was maintained at six members for the 2023 fiscal year. The Committee is chaired by the only Independent member, Olivier Piani, and includes a member of Italian nationality and a member of Monegasque nationality.

The Strategy and Investment Committee invites all Directors to its meetings, which they are free to attend if they desire and are available to do so.

5.3.3.3.2 Operation

The Strategy and Investment Committee meets at the initiative of its Chairman or at the request of the Chairman of the Board of Directors and, in principle, before Board meetings when the agenda includes a decision that falls within the scope of the duties assigned to the Committee by the Board.

The Chairman of the Strategy and Investment Committee or, in his absence, the Chairman of the Board of Directors sets the agenda for the Committee's meetings. He presides over the discussions and organises the vote on the issues submitted to the Strategy and Investment Committee.

The Strategy and Investment Committee members are notified of meetings by any written method at least five days in advance (unless the matter is urgent), and the Committee's documentation is forwarded at least two days prior to the Committee meeting.

Any Director who is not a member of the Strategy and Investment Committee may attend Committee meetings without voting rights.

The presence of at least half of the members of the Strategy and Investment Committee is required for meetings to be valid, in the understanding that members who are represented are included in the calculation of the quorum.

The opinions of the Strategy and Investment Committee are adopted by simple majority vote of the members present or represented, and the Committee reports on its work at the next Board meeting. On this occasion, a wide-ranging report on its work is presented to the Board, so that the Directors can make an informed decision on the company's strategy, based on the preparatory work of the Committee.

5.3.3.3.3 Missions

Under the terms of Article 16 of the Internal Regulations, the Strategy and Investment Committee is in charge of reviewing and issuing an opinion on the following transactions prior to any decision by the Board:

―

investment made directly by the company or through a fully consolidated subsidiary, when the total amount of the investment, plus any liabilities attached to the assets in question, is greater than €100 million (Group Share);

―

the disposal by the company or through a fully consolidated subsidiary, with the exception of companies whose shares are listed for trading on a regulated market, of any business division, any investment in any company or any assets, whenever the total amount of the corresponding disinvestment, plus any liabilities attached and transferred, is greater than €100 million (with the exception of intra-group transactions).

In addition, the Strategy and Investment Committee is in charge of reviewing and authorising the following transactions prior to any decision by the Chief Executive Officer:

―

investment made directly by the company or through a fully consolidated subsidiary, when the total amount of the investment, plus any liabilities attached to the assets in question, is greater than €30 million (Group Share);

―

the sale by the company or through a fully consolidated subsidiary, with the exception of companies whose shares are listed for trading on a regulated market, of any business division, any investment in any company or any assets, whenever the total amount of the corresponding disinvestment, plus any liabilities attached and transferred, is greater than €30 million (with the exception of intra-group transactions).

More generally, the Strategy and Investment Committee is in charge of:

―	reviewing major strategic projects for expansion through mergers and acquisitions or partnerships;
―	analysing the medium-term plans and projections of the Covivio group, as applicable;
―	meeting with experts to review the opportunities presented by the strategic options considered, as necessary; and
―	keeping the Board's strategy considerations up-to-date between meetings specifically dedicated to these issues.

It may use the services of external experts as required. The Strategy and Investment Committee did not consider it necessary to use it in 2023.

5.3.3.3.4 Work of the Strategy and Investment Committee in 2023

The Strategy and Investment Committee met four times, with an attendance of 92% by its members. These meetings were also attended by a significant number of guest Directors.

The details by meeting are shown below:

Date	Attendance rate
19 April 2023	83%
20 July 2023	100%
19 October 2023	83%
23 November 2023	100%

In its 2023 meetings, the Strategy and Investment Committee examined the following subjects in particular: The Chairman of the Strategy and Investment Committee reported to the Board of Directors on the Committee's work and its recommendations and decisions.

Meeting of 19 April 2023	• Presentation and approval of a re-development project.
Meeting of 20 July 2023	• Presentation and issuance of a favourable recommendation to the Board of Directors on a proposed disposal.
	• Presentation and approval of a re-development project.
	• Presentation and issuance of a favourable recommendation to the Board of Directors on a proposed asset swap.
Meeting of 19 October 2023	• Monitoring of governance decisions.
	• Presentation and approval of planned disposals.
	• Presentation of investment operations post-mortem.
Meeting of 23 November 2023	• Monitoring of governance decisions.
	• Presentation and approval of a project to share a real estate asset portfolio.
	• Presentation of investment operations post-mortem.

5.3.3.4 CSR Committee

Created on 21 July 2021, the CSR Committee is tasked with validating the Group's CSR strategy and monitoring its implementation by ensuring its consistency with Covivio's Purpose and the expectations of stakeholders. It works with the Audit Committee on CSR risk factors, and with the Appointments and Remunerations Committee on the determination of relevant CSR criteria (including at least one criterion connected with the group's climate objectives) in the context of executive remuneration as well as any governance issues identified by non-financial rating agencies.

^* Independent members

5.3.3.4.1 Composition

Following the renewal of their Directorships by the Combined General Meeting of 20 April 2023, the Board of Directors renewed Jean-Luc Biamonti and Christian Delaire as members of the CSR Committee.

The composition of the CSR Committee was maintained at six members for the 2023 fiscal year.

The independent Directors represent 67% of the members: Alix d'Ocagne, Christian Delaire, Patricia Savin and Daniela Schwarzer.

Chaired by an independent Director, the CSR Committee includes one member of Monegasque nationality and one member of German nationality.

5.3.3.4.2 Operation

The CSR Committee meets at the initiative of its Chairwoman or at the request of the Chairman of the Board of Directors. It meets at least twice a year and, in principle, before Board meetings when the agenda involves making a decision within the scope of the duties assigned to the CSR Committee by the Board.

The Chairwoman of the CSR Committee or, in his or her absence, the Chairman of the Board, sets the agenda of the CSR Committee meetings. She presides over the discussions and organises the vote on the issues submitted to the CSR Committee.

The CSR Committee members are notified of meetings by any written method at least five days in advance (unless the matter is urgent) and the Committee's documentation is forwarded at least two days prior to the Committee meeting.

The presence of at least half of the members of the CSR Committee is required for meetings to be valid, in the understanding that members who are represented are included in the calculation of the quorum.

The opinions of the CSR Committee are adopted by simple majority vote of the members present or represented, and the Committee reports on its work at the next Board meeting.

As part of the performance of its duties, the CSR Committee may request any document that it deems useful for the performance of its duties. It may also, when it deems it necessary, hear the Group's employees on CSR aspects and any person it deems useful to hear in the context of its mission, if necessary, without the presence of the members of the General Management.

5.3.3.4.3 Missions

Pursuant to Article 28 of the Internal Rules, the CSR Committee is responsible for the following tasks:

―	examining and validating the Group's commitments and policy guidelines in terms of environmental, societal and social responsibility and governance (hereinafter "CSR");
―	ensuring their consistency with Covivio's Purpose and stakeholder expectations;
―	monitoring its deployment;
―	more generally, ensuring that CSR issues are taken into account in the Group's strategy and its implementation;
―	where applicable, issue recommendations, in conjunction with the Appointments and Remunerations Committee, on the determination of the CSR criteria (at least one of which is connected to the Group's climate objectives) to be taken into account when setting the components of the variable portion of the compensation of executive corporate officers, and on the monitoring of their achievement;
―	where applicable, issuing recommendations, in conjunction with the Audit Committee, on CSR risks and the systems for managing these risks;
―	in general, ensuring that all information required by current CSR legislation is prepared;
―	examining the Group's policies, guidelines and charters on CSR topics and ensuring their effectiveness;
―	assessing and reporting on the performance and impact of the Group's CSR activity;
―	examining and monitoring the non-financial ratings obtained by the Group from non-financial rating agencies;
―	identifying and discussing emerging trends, new challenges and best practices in terms of CSR, and ensuring that the Group is prepared in the best way possible with regard to the challenges specific to its activity and its objectives by proposing, in continuity, the necessary or desirable changes;
―	monitoring the commitments made when the company had a corporate purpose.

It may use the services of external experts as required. In 2023, the CSR Committee called on an independent consulting firm to carry out a study on biodiversity.

5.3.3.4.4 Work of the CSR Committee in 2023

The CSR Committee met three times, with an attendance rate of 94%, details of which per meeting are shown below:

Date	Attendance rate
19 April 2023	100%
21 September 2023	100%
23 November 2023	83%

During these meetings in 2023, the CSR Committee examined the following topics in particular. The Chairwoman of the CSR Committee reported to the Board of Directors on the Committee's work and its recommendations.

Meeting of 19 April 2023	• Progress update on the Committee's multi-year work programme and approval of the work programme for 2023.
	• Monitoring of commitments associated with Covivio's Purpose.
	• Review of non-discrimination and diversity policies and their results.
	• Review of policy on professional and pay equality.
	• Progress of the carbon trajectory, and of the levers for reducing carbon emissions.
	• Update on taxonomic data published at the end of 2022.
	• Presentation of the results of the study conducted by an independent external consultant on the theme of biodiversity.
Meeting of 21 September 2023	• Presentation of the results of the Commitment Barometer.
	• Presentation of the results of the benchmark of the rates of eligibility and alignment with the taxonomy of European real estate companies.
	• Determination of the CSR objectives in terms of long-term incentives for 2023 granted in 2024 to executive corporate officers, which will be proposed to the Appointments and Remunerations Committee.
	• Discussion of the proposed CSR criteria in the 2024 annual bonuses for executive corporate officers.
Meeting of 23 November 2023	• Progress update on the Committee's multi-year work programme.
	• Progress on the greening of the debt.
	• Approval of the responsible procurements policy proposal and the use of the EcoVadis solution to enable its deployment.
	• Review of ESG ratings and validation of areas for improvement identified.
	• Approval of the CSR criteria in the 2024 annual bonuses for executive corporate officers, which will be proposed to the Appointments and Remunerations Committee.
	• Update on regulatory news and in particular the CSRD.

5.3.4 Remuneration of corporate officers

5.3.4.1 The remuneration policy for executive corporate officers submitted for approval by the General Meeting of Shareholders on 17 April 2024 (ex-ante Say on Pay)

In an ex-ante vote as required under Article L. 22-10-8 of the French Commercial Code, the remuneration policy applicable to the Chairman of the Board of Directors, the Chief Executive Officer, Deputy CEO and Directors was set out in draft resolutions (10, 11, 12 and 13) submitted for the approval of the Combined General Meeting of 17 April 2024. Every year and with each major change, this remuneration policy will be put to vote at the General Meeting, under the conditions set out in Article L. 225-98 of the French Commercial Code.

5.3.4.1.1 Remuneration policy applicable to the Chairman of the Board of Directors (Resolution 10)

5.3.4.1.1.1 Summary of the remuneration of the Chairman of the Board of Directors

The remuneration of Covivio's Chairman of the Board of Directors comprises a fixed component only (for illustrative purposes, currently €200 thousand), and, where applicable, a benefit in kind, in this case a company car. There is no variable remuneration, performance bonus or remuneration paid in treasury shares. This remuneration is not usually reviewed during the course of the mandate.

The Board ensures that it is in line with the remuneration of the non-executive Chairmen of the SBF 120 and that it respects the company's corporate interest. He reserves the right to change it during a new term of office, justifying the reasons for her choice.

The Chairman of the Board of Directors may also have the same health and pension plan as employees of the Group in France.

He receives no other remuneration allocated by the company or its subsidiaries for exercising his duties.

The Chairman of the Board of Directors has no employment contract and is not entitled to:

―	any remuneration or benefits payable or likely to be payable as a result of termination/change of function, or subsequent thereto, or any conditional entitlements awarded in respect of pension commitments;
―	any commitment or conditional entitlement;
―	any commitment in respect of a non-complete remuneration.

The remuneration policy applicable to the Chairman of the Board of Directors does not include any exemptions in the event of exceptional circumstances.

In accordance with Article R. 22-10-14 of the French Commercial Code, the Chairman of the Board of Directors is appointed by the Board from among its members, for a term that may not exceed his Directorship, set at four years, and ending following the meeting of the Ordinary General Meeting having approved the financial statements for the most recent year ended and held in the year in which his term expires. The Chairman may be reappointed based on the same terms but his Directorship may be revoked by the General Meeting at any time without remuneration or notice.

5.3.4.1.1.2 Decision-making process for determining, reviewing and implementing the remuneration of the Chairman of the Board of Directors

In accordance with the provisions of Article 18 of the Articles of Association, the Board of Directors sets the amount, calculation methods and payment of any remuneration of the Chairman. Pursuant to Article 20 of the Board of Directors' Internal Regulations, the Appointments and Remunerations Committee submits proposals to the Board on the Chairman's remuneration.

Remuneration of the Chairman of Covivio's Board of Directors is set by the Board for the duration of his four-year term.

For information, his remuneration was set at €200 thousand by the Board of Directors on 21 July 2022, when Jean-Luc Biamonti was appointed Chairman of the Board of Directors, based on a benchmark of SBF 120 companies and companies in the same business sector.

In accordance with Article L. 22-10-8 of the French Commercial Code, the components of this remuneration policy applicable to the Chairman of the Board of Directors, which will be put to the vote of the General Meeting on 17 April 2024, were approved by the Board of Directors' meeting held on 15 February 2024, it being specified that the policy remains unchanged since 21 July 2022.

In addition, it is specified, pursuant to Article R. 22-10-14 of the French Commercial Code, that:

―	the company's decision-making process involves two-tier approval, following the opinion of the Appointments and Remunerations Committee, by the Board of Directors and General Meeting, which helps to prevent conflicts of interest;
―	given the structure of the remuneration of the Chairman of the Board of Directors, the remuneration and employment conditions of company employees need not be factored in.

5.3.4.1.2 Remuneration policy applicable to the Chief Executive Officer (CEO) and any Deputy CEO (Resolutions 11 and 12)

5.3.4.1.2.1 Composition of the remuneration of the Chief Executive Officer (CEO) and any Deputy CEO

The remuneration of the Chief Executive Officer (CEO) and any Deputy CEO comprises and will comprise only the following components which are in the company's interests and support the company's commercial strategy.

5.3.4.1.2.1.1 Fixed portion

The Appointments and Remunerations Committee and the Board of Directors ensure, on a regular basis, that the amount of fixed remuneration paid to executive corporate officers is positioned correctly in relation to the market by using benchmarks relating to the remuneration of Directors of SBF 80 companies and those companies with stock market capitalisation equivalent to that of Covivio, complemented by French and European sector-based research. For illustrative purposes, over the period 2023-2026, the fixed remuneration of the Chief Executive Officer was €800 thousand, and that of the Deputy CEO was €460 thousand.

In principle, the Board endeavours to review this remuneration only at regular and spaced intervals, in connection with possible changes in responsibilities, or events affecting the company, and, more generally, at the time of the renewal of the term of office, if applicable.

5.3.4.1.2.1.2 Variable portion

For the variable portion of remuneration (annual bonus), the Appointments and Remunerations Committee evaluates executive corporate officers based on clear, specific, measurable and operational targets. These targets are determined every February, by the Board of Directors based on proposals put forward by the Appointments and Remunerations Committee. They are determined according to the strategic plan and budget approved by the Board for the current year and the company's current priorities and, as such, support the company's strategy and long-term prospects.

By way of illustration, for 2023, the criteria are composed as follows:

―	30%: objective of achieving the level of operating income (EPRA Earnings) communicated to the market;
―	20%: objective linked to the level of NAV NTA;
―	30%: operational objectives related to the execution of the budget: for example, disposals, development projects, financing, letting;
―	20%: CSR and strategic objectives.

The target bonus for the Chief Executive Officer and Deputy CEO equals 100% of their fixed annual salary.

In an effort to provide differentiation, motivation and an incentive to outperform, provision is made for an upside of as much as 50% of the target bonus to reward performance that goes beyond the targets set at the beginning of the year. In order to align with the interests of shareholders and retain executives, any upside portion of the bonus is not paid in cash but is the subject of a free share allocation. The delivery of these shares is subject to a condition of presence within the company three years after the grant.

Finally, a "circuit breaker" system provides for bonuses to be withheld in the event of a significant deterioration in the company's performance over the year.

5.3.4.1.2.1.3 Exceptional bonus

The variable remuneration scheme explained above is designed not to have any exceptional bonus paid out. The Board of Directors has not paid any exceptional bonus to executive corporate officers since the start of their terms of office.

The only way that the Board would decide to pay any exceptional bonus is under exceptional circumstances:

―	situations that do not fall within the framework of the annual strategic and operational goals determined at the beginning of the year;
―	situations that were not foreseeable at the time that the criteria were set for determining the annual variable portion;
―	situations that affect the company in terms of its size, scope or strategy.

In all cases, this exceptional bonus would be determined so as not to exceed 50% of the target bonus of the Chief Executive Officer and the Deputy CEO(s).

5.3.4.1.2.1.4 Long-Term Incentive plan (LTI)

The principles used to allocate performance shares to the Chief Executive Officer and Deputy CEO(s) are as follows:

―	the allocation of shares, which is the third component of remuneration, is a long-term incentive plan, and is a top-up for the fixed and variable portion of salary;
―	LTI for year N is allocated after the financial statements are approved, at the beginning of year N+1;
―	this lag, suggested by the Appointments and Remunerations Committee, makes it possible to allocate shares contingent on the achievement of operational results and the achievement of individual targets, and to record the performances in consideration of the closing of the financial statements for the fiscal year N;
―	the Appointments and Remunerations Committee, in setting this annual share allocation period, has made it possible to avoid any windfall effect through any share price volatility.

This long-term incentive plan has the following aims for the beneficiaries of the shares:

―	foster loyalty: employee retention shares are not definitively allocated until the end of the vesting period (usually 3 years) on the condition that beneficiaries are still employed by the company;
―	motivation and involvement: long-term share values ultimately depend on the company's performance in its sector, which is reflected in the share price;
―	aligning the interest of executive corporate officers with those of shareholders: shares are only definitively allocated when performance targets are achieved;
―	lastly, enabling executive corporate officers to create a pension scheme, given the lack of a supplementary pension scheme in the company.

In 2023, the LTI target accounts for 40% of the Chief Executive Officer's total remuneration and one-third of the total remuneration of the Deputy CEO. As a matter of principle, the Board only reviews these proportions at regular set intervals, in line with any potential changes to responsibilities, or events affecting the company, and, more generally, when the term of office is renewed, where applicable. These target amounts also constitute caps.

100% of share allocations will be subject to presence and performance conditions, each analysed over the three-year vesting period, given that the number of shares allocated, subject to performance requirements, may not exceed the target number listed at the time of allocation.

The Board endeavours not only to maintain the same performance conditions over several fiscal years, but also to change them according to the feedback from shareholders expressed during their vote at the General Meeting, and according to changes in the company's strategic and CSR priorities.

As an illustration, the Board of Directors has set the following conditions for the LTI 2022 awarded in February 2023 and the LTI 2023 awarded in February 2024:

30% Relative stock market performance condition:

The relative total shareholder return (TSR) of Covivio compared with the "Eurozone" EPRA index, defined by the change in the share price over the three-year reference period, taking into account any gross dividends or interim dividends.

The target number of shares will be paid in the event of an outperformance of 8 points compared to the index (no additional payment for outperformance beyond +8 pts). An outperformance of +6 points will result in the payment of 90% of the target number of shares, an outperformance of +4 points will result in the payment of 80% of the target number of shares, an outperformance of +2 points will result in the payment 70% of the target number of shares. Performance equal to the index will lead to payment of 60% of the target number of shares. Finally, an underperformance of -10 points will cancel out any payment of shares. Between the limits indicated, a linear calculation is intended.

20% Absolute stock market performance condition:

The absolute total shareholder return (TSR) of Covivio, defined as the change in share price over the three-year reference period, taking into account all gross dividends or interim dividends.

The target number of shares will be paid in the event of a TSR greater than or equal to 20% (no additional payment in the event of outperformance beyond 20%). A TSR of 18% will result in the payment of 83.3% of the target number of shares, a TSR of 16% will result in the payment of 66.7% of the target number of shares, a TSR of 14% will result in the payment of 50% of the target number of shares, a TSR of 12% will result in the payment of 33.3% of the target number of shares. Lastly, a TSR < 10% will cancel out any payment of shares. Between the limits indicated, a linear calculation is intended.

20% Compliance with adjusted EPRA Earnings guidelines condition

If Covivio's adjusted EPRA Earnings are 3% higher than the guidance communicated to the market at the start of the year (average over the three-year vesting period), the target number of shares will be delivered. If Covivio's adjusted EPRA Earnings reach the market guidance, 80% of the target number of shares will be delivered. Finally, if Covivio's adjusted EPRA Earnings are lower than the guidance, no shares will be delivered. Between the limits indicated, a linear calculation is intended.

30% CSR criteria

15% = Carbon emissions reduction target

For the LTI 2022, 100% of the target number of shares will be delivered if 100% of Covivio's portfolio has environmental certification in 2025.

Only 50% of the target number of shares will be delivered if Covivio's portfolio is only 95% green certified and no shares will be delivered if Covivio's portfolio is only 90% green certified. Between the limits indicated, a linear calculation is intended. As a reminder, at the end of 2022, the greening rate was 90.7% and it stood at 95.3% at the end of 2023.

For the LTI 2023, 100% of the number of shares will be delivered if Covivio reaches, in 2026, its target of reducing carbon emissions, at 52.8 kgCO ₂ e/m ² /year.

Only 50% of the target number of shares will be delivered if the carbon intensity reaches 55 kgCO ₂ e/m ² /year. As a reminder, at the end of 2022, emissions amounted to 57.4 kCO ₂ e/m ² /year.

15% = Objective linked to the commitment of the teams or, alternatively every other year, gender balance of teams

For the LTI 2022, 100% of the target number of shares will be delivered if the commitment of Covivio's teams is 10 points higher than the benchmark. Only 50% of the target number of shares will be delivered if the commitment of the teams is only 5 points higher than the benchmark. No shares will be delivered if Covivio's commitment is lower than the benchmark. Between the limits indicated, a linear calculation is intended.

For the LTI 2023, 100% of the target number of shares will be delivered if Covivio scores 82/100 in the area of the gender balance of teams. No shares will be delivered if the Covivio score is less than 70/100. Between the limits indicated, a linear calculation is intended.

The internal score of 100 points, established by the Board, is 30% on the basis of the gender balance of the Executive Committee (0 pts if rate = 0%, 30 pts if rate = 50%), 30% on the basis of the gender balance of the country CODIR (same calculation), 20% on the basis of the gender balance of management (same calculation), and 20% on the Equality Index score (score of 0 if index < 75, 5 if index between 76 and 80, 10 if index between 81 and 90, 15 if index between 91 and 95, 20 if index> 95). As a reminder, at the end of 2022, the score was 79/100.

These LTI performance conditions were reviewed in depth by the Appointments and Remunerations Committee, then by the Board of Directors, to respond to requests from investors and proxy advisors. They have applied since the allocation in February 2023 of the LTI 2022. In particular, they make it possible to:

―	reserve a significant portion for CSR criteria (30%);
―	introduce an absolute stock market performance criterion alongside a relative stock market performance criterion;
―	eliminate the possibility of offsetting underperformance of one criterion by outperformance of another criterion;
―	set ambitious targets for each criterion;
―	cancel the allocation of shares in the event of underperformance, with the exception of the relative stock market criterion, due to its high volatility (only 30% of the criteria).

These conditions combine external and internal performance, thus assuring shareholders that:

―	the long-term remuneration of executive corporate officers is directly linked to Covivio's stock market performance;
―	it is also tied to the company's operating and CSR performance.

The Chief Executive Officer and the Deputy CEO make a formal commitment not to use any hedging transactions for their risk related to the holding of Covivio shares.

In the event of involuntary termination of office (excluding voluntary resignation), the Board may, under certain circumstances, be required to maintain all or part of the performance shares under the vesting period. This possibility will only be exercised in the event of "good leaver" departure, excluding in particular any departure related to misconduct. Furthermore, in such a situation, the Board would evaluate whether performance criteria had been achieved by the deadline, to determine the percentage of shares that would still be allocated.

For information purposes, the number of performance shares allocated to the Chief Executive Officer and Deputy CEO for 2023 represented 33% of all shares allocated within the Group.

Since 2008, the Board of Directors, on the recommendation of the Appointments and Remunerations Committee, has put an end to schemes for allocation of stock options that were previously activated in parallel with the schemes for allocation of free shares.

5.3.4.1.2.1.5 Other benefits

The Chief Executive Officer and the Deputy CEO also receive the following benefits:

―	a company car;
―	the same health and pension plan as Group employees in France, with the same employer contribution, as well as the opportunity to have a physical every two years;
―	job loss insurance with GSC.

5.3.4.1.2.1.6 Remuneration to be paid out upon termination of office

In exchange for waiving the right to receive severance benefits, the Board of Directors has implemented a termination benefit for the Chief Executive Officer (CEO) and the Deputy CEO.

The benefits for Christophe Kullmann and Olivier Estève were approved by the Board of Directors on 24 November 2022, and by the shareholders at the Combined General Meeting on 20 April 2023 voting on Resolutions 12 and 13.

The remuneration would only be paid out in the event of involuntary termination, which excludes cases where they would leave the company of their own volition, change jobs within the Group or exercise their right to early retirement.

a) Theoretical remuneration amount

The theoretical remuneration amount would be equal to 12 months' total remuneration including the fixed salary and the annual variable part, plus one month's additional remuneration per year of service at the company regardless of the positions held, it being understood that the current remuneration system does not include payment of an exceptional bonus. This amount is capped at 24 months' total remuneration (fixed +bonus).

b) Performance criteria

In accordance with the recommendations of the Afep-Medef Code, entitlement to this remuneration would be subject to stringent internal and external performance criteria:

―

50% of the theoretical amount of the indemnity is linked to the change in NAV over the last three fiscal years preceding the termination of office: if the change in Covivio's NAV NTA is 25% lower than the average property companies making up the EPRA index, the portion of the employee severance indemnity linked to this criterion will not be paid. If the contrary applies, the theoretical amount of this portion of the remuneration will be adjusted to reflect the change in the company's revalued net assets during the applicable period. In addition, the Board of Directors introduced a criterion of non-payment of remuneration in the event of a 50% reduction in Covivio's NAV in absolute terms or for the three-year period preceding the cessation of functions;

―

50% of the theoretical amount of the remuneration would be conditioned by achievement of the targeted levels of performance for the three fiscal years preceding the cessation of functions. The criteria for allocation of performance bonus are reviewed annually by the Remuneration and Appointments Committee and based on ambitious operating and strategic goals. Their achievement is assessed on the basis of a range of precise criteria. Should the average achievement of the targeted levels of performance for the last three fiscal years be less than 80%, the portion of remuneration associated with this criterion would not be paid. If the contrary applied, the theoretical amount of this portion of the remuneration would be adjusted to reflect the average achievement of the last three fiscal years.

In any event, albeit any excess performance for one of the two aforementioned criteria may offset any eventual shortfall for the other criterion, the total amount of the aforementioned termination remuneration is limited to two years' total remuneration. This cap rule applies to all forms of severance pay and includes any other remuneration paid for any other reason at the end of a term of office, it being specified that the Chief Executive Officer and Deputy CEO will not receive any remuneration from Covivio other than that paid for their term of office.

As a result of the performance criteria listed above being set, the Board will be able, where appropriate, to reflect the target and actual performance of the Chief Executive Officer and Deputy CEO on the severance pay. As the goals conditioning the payment of the variable portion of remuneration are aligned on the company's operating performance and on the deployment of its strategy, any remuneration paid would necessarily be proportional to the results achieved, thus fully meeting the requirements of the recommendations included in the Afep-Medef Code.

These commitments are not subject to performance conditions.

5.3.4.1.2.1.7 Remuneration allocated in respect of the fiscal year of Directorships or memberships on the Supervisory Board

The Chief Executive Officer and Deputy CEO receive no remuneration linked to their attendance at meetings of the company's Board of Directors or Board of Directors or Supervisory Boards of Group subsidiaries.

5.3.4.1.2.1.8 Supplementary pension schemes

Neither the Chief Executive Officer (CEO) nor the Deputy CEO benefits from a specific defined benefits or defined contributions pension scheme.

5.3.4.1.2.1.9 Employment contract

Neither the Chief Executive Officer nor the Deputy CEO have an employment contract.

Pursuant to the recommendation in the Afep-Medef Code that "when an employee is appointed as executive corporate officer of the company, it is recommended to terminate the employment contract with the company, whether through contractual termination or resignation"; Christophe Kullmann's employment contract was terminated by common accord between him and Covivio on 26 November 2008, without payment of remuneration.

Christophe Kullmann has since that date received GSC unemployment insurance.

He also has supplementary group mutual insurance covering healthcare expenses. He does not benefit from the Group Incentive Plan.

Similarly, the employment contract of Olivier Estève, Deputy CEO, was terminated on 1 November 2012, without payment of remuneration. Since that date, he also receives GSC unemployment insurance, as well as supplementary group mutual insurance covering healthcare expenses. He does not benefit from the Group Incentive Plan.

5.3.4.1.2.1.10 Remuneration for non-compete clause

Neither the Chief Executive Officer nor the Deputy CEO receive any remuneration related to a non-compete clause.

5.3.4.1.2.1.11 Welcome bonus (Golden hello)

Covivio has never paid any signing bonus to a Chief Executive Officer or Deputy CEO. If such a situation arose, the Board would ensure that the premium was calculated in such a way as to cover the losses caused by the recruitment of the officer due to having left his previous employment.

5.3.4.1.2.1.12 Obligation to retain shares

The Afep-Medef Code recommends that the Board set a share retention requirement, sufficiently restrictive, for executive corporate officers and their free shares. This makes it possible to adequately take into account the company's long-term performance. Covivio's Board of Directors has set a retention requirement of 50% for performance shares throughout the term of office, until they hold shares equivalent to two years' worth of fixed remuneration. Above this threshold, they are free to dispose of shares.

5.3.4.1.2.1.13 Clawback clause

The Board of Directors reserves the right to request the return of all or part of the annual variable compensation paid to executive corporate officers, within five years following the payment of an annual variable portion, in the event that the executive has committed serious and wilful misconduct, such as the intentional and manifest falsification of the financial, accounting or quantitative data used to measure the performance. The compensation policy applicable to the Chief Executive Officer and the Deputy CEO does not allow for any derogation in the event of exceptional circumstances.

Pursuant to the provisions of Article R. 22-10-14 of the French Commercial Code, the Chief Executive Officer is appointed by the Board of Directors, which sets their term of office, and they may be reappointed or dismissed at any time. Moreover, the Deputy CEO is appointed by the Board of Directors on the proposal of the Chief Executive Officer. The Deputy CEO may be dismissed at any time by the Board of Directors, on the proposal of the Chief Executive Officer.

Christophe Kullmann and Olivier Estève were appointed on 31 January 2011 for a four-year term and were reappointed three times for the same term. Their current term of office covers the fiscal years 2023 to 2026.

5.3.4.1.2.2 Decision-making process for determining, reviewing and implementing the remuneration of the Chief Executive Officer and any Deputy CEO

The remuneration policy for the Chief Executive Officer and that of the Deputy CEO is determined by the Board of Directors based on work carried out and proposals made by the Appointments and Remunerations Committee. This Committee met twice in 2023, to ensure that this policy is in line with the principles listed by the latest changes to the Afep-Medef Code.

The Appointments and Remunerations Committee makes proposals to the Board of Directors as to the remuneration of the Chief Executive Officer and Deputy CEO (amount of fixed remuneration and rules for calculating variable remuneration), ensuring that these rules are consistent with the annual performance review of corporate officers and the company's medium-term strategy and enforcing these rules over the year.

The Committee and the Board are particularly keen to follow these guidelines:

―	remuneration is exhaustively determined through three main components: a fixed portion, a variable portion and the allocation of performance shares; in-kind benefits mainly consist of a company vehicle and covering the cost of job loss insurance.

The basic principles sought are:

―	a balance between the various components, short term and long-term, fixed and variable;
―	remuneration correctly situated in the market and designed to foster loyalty;
―	simple, easy-to-read tools for the market and shareholders;
―	a strong link between remuneration and operational performance;
―	a variable portion based on objective quantifiable performance criteria that combine the interests of the company, its staff and its shareholders, at the same time providing an incentive for outperformance and a "circuit breaker" system to sanction any deterioration of key company indicators;
―	a financial alignment with the long-term interests of shareholders;
―	development that is generally consistent with the remuneration and employment terms of the company's employees.

The Committee and the Board use industry-based benchmarks and general research studies simply to check that overall remuneration packages are in line with market rates.

All conditions and components of remuneration allocated to Christophe Kullmann and Olivier Estève, proposed by the Appointments and Remunerations Committee were approved on 24 November 2022 by the Board of Directors upon their reappointment as Chief Executive Officer and Deputy CEO, respectively, for a four-year term from 1 January 2023.

The components of the remuneration were published on the company's website on 24 November 2022 in the case of Christophe Kullmann and Olivier Estève.

Pursuant to Article L. 22-10-8 of the French Commercial Code, the components of this compensation policy applying to the Chief Executive Officer and the Chief Operating Officer, which will be submitted for the approval of the Combined General Meeting of 17 April 2024, were approved by the Board of Directors' meeting held on 15 February 2024.

Moreover, pursuant to Article R. 22-10-14 of the French Commercial Code, the company's decision-making process involves two-tier approval, following the aforementioned opinion of the Appointments and Remunerations Committee, by the Board of Directors and the General Meeting, which helps to prevent conflicts of interest.

5.3.4.1.3 Remuneration policy applicable to Directors (Resolution 13)

5.3.4.1.3.1 Composition of the remuneration of Directors

The remuneration of Directors, as non-executive corporate officers according to the Afep-Medef Code, is made up of a fixed and variable portion. The annual amount agreed by the General Meeting as the total allocation for the remuneration of members of the Board of Directors is €800 thousand.

The criteria for allocation and financial conditions of remuneration are as follows:

―	the fixed portion is allocated annually to each Director according to his or her position on the Board of Directors and on any Committees; and
―	the variable portion is based on a per-meeting amount, which allows the actual contribution of each Director to the work of the Board and its Committees to be factored in.

On the Board of Directors

―	Fixed portion per Director per annum: €6,000.
―	Additional allowance for the Chairman per annum: €4,000.
―	Variable portion for attendance per Director: €4,000/ meeting.
―	Additional variable portion of attendance/non-French resident Director physically present: €2,000/meeting.
―	Additional variable attendance fee/French-resident Director physically present: €1,000/meeting.

On specialised Committees

―

Fixed portion per member per annum: €3,000.

―

Additional allowance for the Chairman of the Audit Committee per annum: €17,000.

―

Additional allowance for the Chairmen of the Appointments and Remunerations Committee, the Strategy and Investments Committee and the CSR Committee per annum: €12,000.

―

Variable portion for attendance per member:

―	Members of the Strategy and Investment Committee, the Appointments and Remunerations Committee and the CSR Committee: €2,000 per meeting.
―	Members of the Audit Committee: €3,000 per meeting.

―

Additional variable attendance fee/non-French resident member physically present: €2,000/meeting.

―

Additional variable attendance fee/French-resident member physically present: €1,000/meeting.

The allocation rules set out above would also apply in the event of the creation of a new Committee during the fiscal year to assist the Board in the continuation of this work. The members of this newly created Committee would then receive remuneration similar to that of the members of one of the pre-existing Committees.

The variable portion of Directors' remuneration is preponderant as it represents 70% of the total remuneration allocated in 2023.

The following items are specified:

―	the variable portion is paid even if attendance at a meeting is by video conference or any other means of telecommunication;
―	following his appointment and/or resignation, the Director receives the fixed portion of his remuneration prorata temporis over the fiscal year;
―	additional remuneration for Directors who are physically present cannot be combined for Board and Committee meetings held on the same day. It is however paid if the meeting is held by videoconference or telecommunication means at the request of the Chairman of the Board of Directors or the Committees;
―	no remuneration is deducted for non-attendance at Board and Committee meetings;
―	in the event that the Board meets several times on a given day, particularly on the day of the General Meeting, only one meeting is taken into account for the purposes of attendance;
―	any amount paid to each Director is reduced by the same percentage so that the total amount paid remains within the maximum budget set by the General Meeting;
―	tax and employment deductions are paid by the company directly to the tax administration;
―	in order to convey their involvement in the management of the company, from their second year in office, members of the Board of Directors are invited to hold a number of Covivio shares of a value equivalent to around one year of remuneration.

The Director in the position of Chairman of the Board of Directors or Chief Executive Officer and for which he is remunerated does not receive additional remuneration for his Directorship.

In accordance with the Articles of Association and Internal Regulations, the Directors and any Non-voting members of the Board are entitled to reimbursement for travel expenses and costs incurred from attending Board and Committee meetings, upon producing supporting documents.

The remuneration policy applicable to the Directors does not contain provisions for any exemptions in the event of exceptional circumstances nor for the company to request the repayment of the variable remuneration. Nor does it contain provision for any deferral periods nor performance criteria.

In addition, it is specified, in accordance with Article R. 22-10-14 of the French Commercial Code, that Directors do not benefit from:

―	any remuneration in shares;
―	any remuneration or benefit payable or likely to be payable as a result of termination/change of function, or subsequent thereto, or any conditional entitlement awarded in respect of pension commitments;
―	any commitment or conditional entitlement;
―	any commitment in respect of a non-complete remuneration.

The remuneration allocated to Directors rewards their contribution to the work of the Board of Directors and its Committees, as well as their level of responsibility within the company. Its aim is to attract and retain high-quality professionals, able to maintain the required balance in skills and expertise deemed necessary for the proper administration of the company. This remuneration may be suspended where the composition of the Board of Directors does not meet the requirements of the first paragraph of Article L. 225-18-1 of the French Commercial Code (proportion of women under 40%), pursuant to the provisions of Article L. 22-10-3 of said Code.

The term of office of Directors is, without exception, four years ending at the end of the Ordinary General Meeting having approved the financial statements for the recent year ended and held in the year in which their term expires. Directors may be reappointed indefinitely, subject to the provisions of the Articles of Association governing age limit. Directors may be dismissed at any time by the General Meeting, without indemnity or prior notice.

5.3.4.1.3.2 Decision-making process for determining, reviewing and implementing the remuneration of Directors

The remuneration policy for Directors, including remuneration distribution methods defined under Article 11 of the Board's Internal Rules, is approved, subject to the prior opinion of Appointments and Remunerations Committee, by the Board of Directors which sets the maximum budget for remuneration to be submitted to the General Meeting of Shareholders.

The maximum annual budget is authorised by the General Meeting.

The Board of Directors allocates any Non-voting members a share of the remuneration allocated to it by the General Meeting, based on the same allocation methods.

The Combined General Meeting of 19 April 2018 awarded the Board of Directors a gross annual sum of €800 thousand for the current year and subsequent years, until a new decision is made by a General Meeting.

The terms for distributing this remuneration to the Directors were last revised by the Board of Directors on 20 October 2022, which decided, on the recommendations of the Appointments and Remuneration Committee:

―	to increase the annual fixed portion for the Chairmen of the CSR Committee and the Strategy Committee from €6,000 to €15,000;
―	to increase the annual fixed portion for the Chairwoman of the Remuneration Committee from €10,000 to €15,000;
―	to retain that of the Chairman of the Audit Committee at €20,000;
―	to allocate an additional variable portion of €1,000 for French-resident Directors who physically participate in governance meetings.

These changes took effect at the end of the Combined General Meeting of 20 April 2023.

The total annual budget authorised by the General Meeting and the methods of allocation approved by the Board of Directors are reviewed with the support of the Appointments and Remunerations Committee in the event of any changes within the company and/or the market by producing benchmarks.

Pursuant to Article L. 22-10-8 of the French Commercial Code, the components of this remuneration policy applicable to Directors, which will be put to the vote of the Combined General Meeting of 17 April 2024, were approved by the meeting of the Board of Directors held on 15 February 2024, it being specified that this remuneration policy remains unchanged since 20 October 2022.

In addition, it is specified, pursuant to Article R. 22-10-14 of the French Commercial Code, that:

―	the company's decision-making process involves two-tier approval, following the aforementioned opinion of the Appointments and Remunerations Committee, by the Board of Directors and General Meeting, which helps to prevent conflicts of interest
―	given the structure of the remuneration of Directors, the remuneration and employment conditions of company employees need not be factored in.

5.3.4.2 Implementation of the corporate officer remuneration policy for the fiscal year ended 31 December 2023 (ex-post Say on Pay referred to as "global")

In a "global" ex-post Say on Pay vote pursuant to Article L. 22-10-34, I of the French Commercial Code, the information referred to in Article L. 22-10-9, I of the French Commercial Code is included in a draft resolution (Resolution 6) submitted for the approval of the Combined General Meeting on 17 April 2024.

5.3.4.2.1 Remuneration paid and/or allocated to executive corporate officers within a consolidated scope for the fiscal year ended 31 December 2023

5.3.4.2.1.1 Information mentioned in Article L. 22-10-9 I of the French Commercial Code relating to the remuneration paid and/or awarded to executive corporate officers for the fiscal year ended 31 December 2023

No executive corporate officer was paid or allocated remuneration from a company within Covivio's scope of consolidation for the fiscal year ended 31 December 2023, pursuant to Article L. 233-16 of the French Commercial Code.

5.3.4.2.1.1.1 Fixed portion

On 24 November 2022, on the proposal of the Appointments and Remunerations Committee, the Board of Directors reappointed Christophe Kullmann for four years, and increased his fixed annual remuneration to €800 thousand from 1 January 2023. Barring exceptional events, this compensation will remain unchanged for the four-year term of office, and therefore until 2026.

Similarly, at its meeting on 24 November 2022, based on a proposal of the Appointments and Remunerations Committee, the Board of Directors renewed the appointment of Olivier Estève for a term of four years and increased his fixed annual remuneration to €460 thousand. Barring exceptional events, this compensation will remain unchanged for the four-year term of office, and therefore until 2026.

The relative proportion of fixed remuneration in 2023 represents:

―	31% of Christophe Kullmann's total remuneration;
―	34% of Olivier Estève's total remuneration.

5.3.4.2.1.1.2 Variable portion

It is recalled that the target bonus for the Chief Executive Officer and the Deputy CEO is equal to 100% of their fixed annual salary.

For 2023, the "circuit breaker" was based on a loan-to-value (LTV) threshold, the crossing of which would have entailed non-payment of the bonus. It was not activated.

For 2023, the criteria for allocating the variable portion of the remuneration of Christophe Kullmann, Chief Executive Officer, were set as follows:

―	80% based on quantitative targets;
―	20% based on qualitative targets.

On 14 February 2024, the Appointments and Remunerations Committee reviewed the achievement of these targets using precise analytical frameworks. Regarding the qualitative objectives, the Appointments and Remunerations Committee had established an evaluation grid assigning a score to each criterion, focusing on assessing the concrete achievements for each of them during the year. This method has made it possible not to discount objectives of strategic importance that the Lead Director of the company is expected to meet and whose measurement cannot be obtained using a standardised numerical indicator.

The Committee thus recorded the following levels of achievement for each target:

		Criteria	Target	Upside	Degree of achievement	Bonus (in € thousand)
30%		EPRA Earnings/share: target = €4.21, maximum upside if > €4.61, downside 50% if <€3.81 2023 income = €4.47	€240 thousand	€360 thousand	133%	€318 thousand
20%		NAV NTA/share 2023 result: €84.10	€160 thousand	€240 thousand	0%	€0 thousand
	30%	Operational objectives Disposal plan: €720 million in disposals in a slow market / 10% reduction in net debt (€7.6 billion to €6.9 billion)	€72 thousand	€108 thousand	90%	€65 thousand
30%	30%	€340 million in Capex (vs €500 million in the budget), delivery of 5 buildings for a cost of €443 million	€72 thousand	€108 thousand	89%	€64 thousand
	20%	€1.9 billion in secured financing over the year/debt maturity at 4.9 years, up by 0.2 years	€48 thousand	€72 thousand	98%	€47 thousand
	20%	133,000 m ² let, pre-let or renewed, 96.4% OR, LFL Rental income +6.2%	€48 thousand	€72 thousand	97%	€47 thousand
20%		Strategy, organisation and CSR (1) Talent attraction and development (2) Implementation of the green Capex plan + launch of a biodiversity plan (3) Continued implementation of the IT and digital strategy = European SAP project (4) Strategic reflection proposed during the Board seminar	€160 thousand	€240 thousand	100%	€160 thousand
		CIRCUIT BREAKER IF LTV > 48%	€800 THOUSAND	€1,200 THOUSAND	88%	€701 THOUSAND

Consequently, the Committee made a proposal to the Board, which it approved on 15 February 2024, that the 2023 bonus should be paid at 88% of the target, i.e. a total of €701 thousand. Subject to its approval by the Combined General Meeting of 17 April 2024, it will be paid in cash. As a reminder, the 2022 bonus (€721 thousand) was allocated at 103% of the target. The 2023 bonus is therefore lower in absolute terms than that of 2022, even though the calculation basis is higher (€800 thousand vs €700 thousand). This decrease is mainly due to the non-achievement of the NAV NTA target set by the Board of Directors for 2023. Covivio's NAV was particularly penalised by the decline in asset values, following the sudden rise in interest rates. This exogenous element is not dependent on the performance of executives. However, in accordance with its principles, the Appointments and Remunerations Committee, then the Board of Directors of Covivio, did not wish to review this criterion or correct it for exogenous effects.

The 2023 bonus of Olivier Estève, Deputy CEO, was calculated:

―	80% based on quantitative targets;
―	20% based on qualitative targets.

On 14 February 2024, the Appointments and Remunerations Committee reviewed the achievement of these targets using precise analytical frameworks. Regarding the qualitative objectives, the Appointments and Remunerations Committee has established an evaluation grid assigning a score to each criterion, focusing on assessing the concrete achievements for each of them during the year. This method has made it possible not to discount objectives of strategic importance that the Deputy CEO of the company is expected to meet and whose measurement cannot be obtained using a standardised numerical indicator.

The Committee thus recorded the following levels of achievement for each target:

		Criteria	Target	Upside	Degree of achievement	Bonus (in € thousand)
30%		EPRA Earnings/share: target = €4.21, maximum upside if > €4.61, downside 50% if <€3.81 2023 income = €4.47	€138 thousand	€207 thousand	133%	€183 thousand
20%		NAV NTA/share 2023 result: €84.10	€92 thousand	€138 thousand	0%	€0 thousand
	30%	Operational objectives Monitoring of development projects: - obtaining a building permit for a Monceau asset - €400 million in new commitments and €342 million in projects delivered - Residential: pipeline committed, nearly 98% pre-sold, delivery of Chartres and SGL, Nice project progress - continuation of the Alexanderplatz project	€41 thousand	€61 thousand	85%	€35 thousand
30%	20%	Implementation of carbon trajectory in development projects: BBCA label on > 75% of new projects, application of the RE 2020	€28 thousand	€42 thousand	95%	€27 thousand
	20%	Letting of Italy Offices: Offices occupancy rate 94.5% / 130,700 m ² let + pre-let + renewed	€28 thousand	€42 thousand	98%	€27 thousand
	10%	Wellio revenues: €26 million France and Italy	€14 thousand	€21 thousand	90%	€13 thousand
	20%	Disposals: €460 million in new disposal commitments	€28 thousand	€42 thousand	86%	€24 thousand
20%		Strategy, organisation (1) Fluidity and cross-functional organisation of the Offices (2) Contribution to strategic thinking	€92 thousand	€138 thousand	90%	€83 thousand
		CIRCUIT BREAKER IF LTV > 48%	€460 THOUSAND	€690 THOUSAND	85%	€391 THOUSAND

Consequently, the Committee made a proposal to the Board, which it approved on 15 February 2024, that the bonus should be paid at 85% of the target, i.e. a total of €391 thousand. Subject to its approval by the Combined General Meeting of 17 April 2024, it will be paid in cash. As a reminder, the 2022 bonus (€409 thousand) was allocated at 102% of the target. The 2023 bonus is therefore lower in absolute terms than that of 2022, even though the calculation basis is higher (€460 thousand vs €400 thousand). This decrease is mainly due to the non-achievement of the NAV NTA target set by the Board of Directors for 2023. Covivio's NAV was particularly penalised by the decline in asset values, following the sudden rise in interest rates. This exogenous element is not dependent on the performance of executives. However, in accordance with its principles, the Appointments and Remunerations Committee, then the Board of Directors of Covivio, did not wish to review this criterion or correct it for exogenous effects.

The relative portion of annual variable remuneration accounts for:

―	27% of Christophe Kullmann's total remuneration;
―	29% of Olivier Estève's total remuneration.

5.3.4.2.1.1.3 Long-Term Incentive

The 2023 LTI was allocated by the Board of Directors on 15 February 2024.

The number of shares allocated is the following:

―	Christophe Kullmann: 50,047 performance shares, i.e. potentially up to 0.05% of the share capital;
―	Olivier Estève: 21,596 performance shares, i.e. potentially up to 0.02% of the share capital.

These allocations were made in compliance with the remuneration policy approved by shareholders. The consistency of the allocation method and schedule over the years makes it possible to prevent any windfall effect for executive corporate officers over time.

In addition, on 14 February 2024, the Appointments and Remunerations Committee reviewed the achievement of the performance criteria set for the shares granted in February 2021 under the 2020 LTI (former criteria, prior to the restructuring of the LTI plan described in 5.3.4.1.2.1.4 Long Term Incentive plan).

The achievement of the criteria is as follows:

Weight	Three-year vesting criteria (2021/2022/2023)	Results	Net income
50%	Covivio total return vs EPRA ex UK ^*	-5.49 pts	88%
15%	Relative change NAV/Covivio share vs EPRA ex UK ^*	-0.8 pt	94%
15%	Relative change EPRA Earnings/Covivio share vs EPRA ex UK ^*	+1.6 pt	99%
10%	Improving the portfolio's environmental performance if 90% =>50% if 93% => 100% if 100% => 130%	95.3%	110%
5%	Team commitment General: if score <+5pt => 0% if score = +5 pts => 50% if score = +10 pts => 100% if score = +15pts => 130%	2023 results: Overall: +26 pts in total	130%
5%	Gender balance of teams Covivio index <60 => 0% Index = 75 => 100% Index>85 => 130%	Executive Committee = 30% => 18 pts CODIR = 41% => 24.6 pts Women managers = 42% => 16.8 pts Equality index: 2021 = 93, 2022 = 91, 2023 = 95, i.e. average of 93 => 15 pts Total = 74.4 pts	96%
TOTAL (CAPPED AT 100% IF > 100%)			95%

^* allocation scale:
performance > 20 pts vs index => 130% performance shares
performance > 5 pts vs index => 110% of performance shares
performance > 2 pts vs index => 100% of performance shares
performance = index => 95% of performance shares
performance < 20 pts vs index => 70% of performance shares
performance < 30 pts vs index => 0% of performance shares

As a result, the performance shares awarded in February 2020 were 95% delivered to the beneficiaries:

―	12,433 shares for Olivier Estève.
―	28,909 shares for Christophe Kullmann;

The graph below reflects the change in the cash/non-cash mix of Christophe Kullmann's compensation from 2022 to 2023:

The change in the Fixed/Variable/LTI mix between 2022 and 2023 below shows that 68% of the Chief Executive Officer's remuneration is subject to performance requirements.

The graph below reflects the change in the cash/non-cash mix of Olivier Estève's remuneration from 2022 to 2023:

The change in the Fixed/Variable/LTI mix between 2022 and 2023 below shows that 63% of Olivier Estève's remuneration is subject to performance requirements.

5.3.4.2.1.1.4 Remuneration to be paid out upon termination of office

After terminating without remuneration their employment contracts, which provided for the payment of a termination benefit in the event of forced departure, the Board of Directors proposed implementing end-of-service severance pay for Christophe Kullmann, Chief Executive Officer, and Olivier Estève, Deputy CEO.

Such benefit would be paid only in the event of forced departure due to a change of control or a change of strategy. This would exclude cases in which they were to leave the company at their own initiative, change roles within the Group or be able to collect retirement benefits within a short period of time.

The calculation methods and theoretical amount of the remuneration are set out in Section 5.3.4.1.2.1.6 on the composition of the remuneration of the Chief Executive Officer and the Deputy CEO in respect of their remuneration policy.

The total amount of severance pay that may be paid is capped at two years of total remuneration (fixed + variable portion), i.e. an estimate to date, based on the year 2023 alone:

―	€3,002 thousand for Christophe Kullmann;
―	€1,702 thousand for Olivier Estève.

On the occasion of the renewal of their terms of office as Chief Executive Officer and Deputy CEO from 1 January 2023, the severance pay of Christophe Kullmann and Olivier Estève they were approved by the Board of Directors on 24 November 2022, then submitted to the approval of the shareholders at the Combined General Meeting of 20 April 2023 as part of the vote on the compensation policy applicable to the Chief Executive Officer and the Deputy CEO under Resolutions 12 and 13.

The amount and conditions for awarding this remuneration were the subject of a press release published on the company's website on 24 November 2022, following the renewal of their terms of office as from 1 January 2023.

5.3.4.2.1.2 Summary tables of the remuneration of executive corporate officers, prepared in accordance with Appendix 4 of the Afep-Medef Code

The information and tables below:

―	provide a summary of the total remuneration and benefits in kind paid or allocated to Christophe Kullmann (Chief Executive Officer) and Olivier Estève (Deputy CEO) for the fiscal year ended 31 December 2023;
―	were drawn up in accordance with the Afep-Medef Code in its latest revised version and published on 20 December 2022;
―	comply with AMF recommendations no 2012-02 of 9 February 2012 updated 28 July 2023 ("Corporate governance and executive remuneration in companies referring to the Afep-Medef Code - Consolidated presentation of the recommendations contained in the AMF annual reports") and no 2021-02 of 8 January 2021 updated 28 July 2023 (guide to preparing Universal Registration Documents) ("AMF Recommendations").

Table 1 ^* - Summary of remuneration and options and shares allocated to each executive corporate officer

	2022		2023
Christophe Kullmann: Chief Executive Officer	Amounts allocated in respect of 2022	Amounts paid in 2022	Amounts allocated in respect of 2023	Amounts paid in 2023
Remuneration (see table 2 for details)	1,461,407	1,638,407	1,541,310	1,561,310
Valuation of multiannual variable remuneration	0	0	0	0
Valuation of options granted	0	0	0	0
Valuation of shares allocated (see table 6 for details) ^**	930,000	930,000	1,066,000	930,000
Valuation of other long-term remuneration plans	0	0	0	0
TOTAL	2,391,407	2,568,407	2,607,310	2,491,310

^* Since the allocation of performance shares awarded in fiscal year N is delayed until N+1, for the purposes of the accuracy and completeness of the information provided, Table 1 distinguishes between amounts paid and those awarded for each fiscal year.

^** The valuation of the shares does not include the portion of the bonus paid in free shares, already included, where applicable, in Table 2.

Note: the share valuations are calculated by an independent expert.

Table 2 - Summary of remuneration for each executive corporate officer

	2022		2023
Christophe Kullmann: Chief Executive Officer	Amounts allocated in respect of 2022	Amounts paid in 2022	Amounts allocated in respect of 2023	Amounts paid in 2023
Fixed remuneration	700,000	700,000	800,000	800,000
Annual variable remuneration ^(*)	721,000	898,000	701,000	721,000
Multiannual variable remuneration	0	0	0	0
Extraordinary remuneration	0	0	0	0
Remuneration allocated in respect of Directorship	0	0	0	0
Benefits in kind (company car, GSC insurance, check up)	40,407	40,407	40,310	40,310
TOTAL	1,461,407	1,638,407	1,541,310	1,561,310

^* The variable amount due for 2022 of €721 thousand is comprised of €700 thousand paid in cash in 2023 + 510 free shares granted in 2023.
The variable amount due in respect of 2023, of €701 thousand, will be paid in cash subject to the approval of the General Meeting of 17 April 2024.

Table 1 ^* - Summary of remuneration and options and shares allocated to each executive corporate officer

	2022		2023
Olivier Estève: Deputy CEO	Amounts allocated in respect of 2022	Amounts paid in 2022	Amounts allocated in respect of 2023	Amounts paid in 2023
Remuneration (see table 2 for details)	850,926	980,926	892,251	910,251
Valuation of multiannual variable remuneration	0	0	0	0
Option values	0	0	0	0
Valuation of performance shares (see table 6 for details) ^**	400,000	400,000	460,000	400,000
Valuation of other long-term remuneration plans	0	0	0	0
TOTAL	1,250,926	1,380,926	1,352,251	1,310,251

^* Since the allocation of performance shares awarded in fiscal year N is delayed until N+1, for the purposes of the accuracy and completeness of the information provided, Table 1 distinguishes between amounts paid and those awarded for each fiscal year.

^** The valuation of the shares does not include the portion of the bonus paid in free shares, already included, where applicable, in Table 2.

Note: the share valuations are calculated by an independent expert.

Table 2 - Summary of remuneration for each executive corporate officer

	2022		2023
Olivier Estève: Deputy CEO	Amounts allocated in respect of 2022	Amounts paid in 2022	Amounts allocated in respect of 2023	Amounts paid in 2023
Fixed remuneration	400,000	400,000	460,000	460,000
Annual variable remuneration ⁽¹⁾	409,000	539,000	391,000	409,000
Multiannual variable remuneration	0	0	0	0
Extraordinary remuneration	0	0	0	0
Remuneration allocated in respect of Directorship	0	0	0	0
Benefits in kind (company car, GSC insurance, check up)	41,926	41,926	41,251	41,251
TOTAL	850,926	980,926	892,251	910,251

^* The variable amount due for 2022 of €409 thousand is comprised of €400 thousand paid in cash in 2023 and 219 free shares granted in 2023.
The variable amount due for 2023, of €391 thousand, will be paid in cash subject to the approval of the General Meeting of 17 April 2024.

Table 4 - Subscription or stock options awarded during the fiscal year to each executive corporate officer by the issuer and by any company in the Group

Name of the executive corporate officer	Number and date of plan	Type of options (purchase or subscription)	Valuation of the options based on the method used for the consolidated financial statements	Number of options awarded during the fiscal year	Exercise price	Exercise period
Christophe Kullmann	None	None	None	None
Olivier Estève	None	None	None	None

Table 5 - Subscription or stock options exercised during the fiscal year by each executive corporate officer

Name of the executive corporate officer	Number and date of plan	Number of options exercised during the fiscal year	Exercise price
Christophe Kullmann	None	None	None
Olivier Estève	None	None	None

Table 6 - Performance shares awarded during the fiscal year to each executive corporate officer by the issuer and by any company in the Group

Name of the executive corporate officer	Plan date	Number of shares granted during the year ^*	Valuation of the shares based on the method used for the consolidated financial statements ⁽¹⁾	Vesting date	Date of availability	Performance conditions
Christophe Kullmann	21/02/2023	38,209	€24.34	21/02/2026	21/02/2026	- 30% = relative stock market performance compared to EPRA - 20% = absolute stock market performance - 20% = Compliance with adjusted EPRA Earnings guidelines condition - 30% = CSR criteria
Christophe Kullmann	21/02/2023	510 ^**	€41.15	21/02/2026	21/02/2026
Olivier Estève	21/02/2023	16,434	€24.34	21/02/2026	21/02/2026
Olivier Estève	21/02/2023	219 ^**	€41.15	21/02/2026	21/02/2026

^* For the year N-1.

^** Upside portion of the bonus, paid in shares with no performance conditions.

⁽¹⁾ Value of the share calculated by an independent expert.

Table 7 - Free performance shares becoming available during the fiscal year for each executive corporate officer

Name of the executive corporate officer	Plan date	Number of shares available during the fiscal year	Vesting conditions	Vesting date
Christophe Kullmann	13/02/2020	18,710	Presence condition +relative stock market performance (1/2) and achievement of economic and CSR objectives (1/2)	13/02/2023
Olivier Estève	13/02/2020	8,390		13/02/2023

Table 9 - Record of performance share allocations

Information about performance shares

	Plan of 20 February 2019	Plan of 21 November 2019	Plan of 13 February 2020	Plan of 13 February 2020	Plan of 13 February 2020	Plan of 16 December 2020
General Meeting date	27/04/2016	27/04/2016	17/04/2019	17/04/2019	17/04/2019	17/04/2019
Board of Directors date	20/02/2019	21/11/2019	13/02/2020	13/02/2020	13/02/2020	16/12/2020
Total number of free shares awarded, the number of which awarded to:	42,208	70,930	41,511	43,500	4,340	19,500
Christophe Kullmann	15,985	0	18,710	0	0	0
Olivier Estève	7,785	0	8,390	0	0	0
Vesting date of shares	20/02/2022	21/11/2022	13/02/2023	13/02/2024	13/02/2023	16/12/2024
End of retention period	20/02/2022	21/11/2022	13/02/2023	13/02/2024	13/02/2023	16/12/2024
Performance conditions	For corporate officers, presence +50% linked to the relative stock market performance compared to the EPRA, and 50% linked to the annual individual target achievement rates	Presence	For corporate officers, presence +50% linked to the relative stock market performance compared to the EPRA, 30% linked to the relative performance compared to the NAV and EPRA Earnings vs EPRA and 20% linked to CSR criteria	Retention plan, presence +50% linked to the relative stock market performance compared to the EPRA, and 50% linked to the annual individual target achievement rates	Presence	Retention plan Presence
Number of shares vested at 31/12/2023	25,123	61,230	31,850	0	4,340	0
Number of cancelled or lapsed shares	17,085	9,700	9,661	19,500		7,000
Free shares still being vested at the end of the fiscal year	0	0	0	24,000	0	12,500

	Plan of 16 December 2020	Plan of 16 December 2020	Plan of 17 February 2021	Plan of 25 November 2021	Plan of 25 November 2021	Plan of 25 November 2021
General Meeting date	17/04/2019	17/04/2019	17/04/2019	17/04/2019	17/04/2019	17/04/2019
Board of Directors date	16/12/2020	16/12/2020	17/02/2021	25/11/2021	25/11/2021	25/11/2021
Total number of free shares awarded, the number of which awarded to:	6,020	71,805	61,675	126,000	9,090	80,000
Christophe Kullmann	0	0	30,333	0	0	0
Olivier Estève	0	0	13,046	0	0	0
Vesting date of shares	16/12/2023	16/12/2023	17/02/2024	25/11/2025	25/11/2024	25/11/2024
End of retention period	16/12/2023	16/12/2023	17/02/2024	25/11/2025	25/11/2024	25/11/2024
Performance conditions	Presence	Presence	For corporate officers, presence +50% linked to the relative stock market performance compared to the EPRA, 30% linked to the relative performance compared to the NAV and EPRA Earnings vs EPRA and 20% linked to CSR criteria	Retention plan, presence +50% linked to the relative stock market performance compared to the EPRA, and 50% linked to the annual individual target achievement rates	Presence	Presence
Number of shares vested at 31/12/2023	0	61,440	0	0	0	0
Number of cancelled or lapsed shares	1,480	10,365	13,046	2,000	1,950	4,450
Free shares still being vested at the end of the fiscal year	4,540	0	48,629	124,000	7,140	75,550

	Plan of 22 February 2022	Plan of 24 November 2022	Plan of 24 November 2022	Plan of 21 February 2023	Plan of 23 November 2023	Plan of 23 November 2023
General Meeting date	17/04/2019	21/04/2022	21/04/2022	21/04/2022	21/04/2022	21/04/2022
Board of Directors date	22/02/2022	24/11/2022	24/11/2022	21/02/2023	23/11/2023	23/11/2023
Total number of free shares awarded, the number of which awarded to:	50,753	9,390	82,705	62,372	9,090	94,625
Christophe Kullmann	29,481	0	0	38,719	0	0
Olivier Estève	13,772	0	0	16,653	0	0
Vesting date of shares	22/02/2025	24/11/2025	24/11/2025	21/02/2026	23/11/2026	23/11/2026
End of retention period	22/02/2025	24/11/2025	24/11/2025	21/02/2026	23/11/2026	23/11/2026
Performance conditions	For corporate officers, presence +50% linked to the relative stock market performance compared to the EPRA, 30% linked to the relative performance compared to the NAV and EPRA Earnings vs EPRA and 20% linked to CSR criteria	Presence	Presence	For corporate officers, attendance +50% linked to stock market performance (relative and absolute), 20% to compliance with earnings guidance and 30% to CSR criteria	Presence	Presence
Number of shares vested at 31/12/2023	0	0	0	0	0	0
Number of cancelled or lapsed shares		1,440	2,300		120
Free shares still being vested at the end of the fiscal year	50,753	7,950	80,405	62,372	8,970	94,625

Table 11

Executive corporate officers	Employment contract		Supplementary pension scheme		Compensation or benefits due or likely to be due by reason of termination of or change of role
	Yes	No	Yes	No	Yes	No
Christophe Kullmann Chief Executive Officer (CEO) Start of term of office: 01/01/2023 End of term of office: 31/12/2026		x		x	x
Olivier Estève Deputy CEO Start of term of office: 01/01/2023 End of term of office: 31/12/2026		x		x	x

Executive corporate officers	Compensation for non-competition clause
	Yes	No
Christophe Kullmann Chief Executive Officer (CEO) Start of term of office: 01/01/2023 End of term of office: 31/12/2026		x
Olivier Estève Deputy CEO Start of term of office: 01/01/2023 End of term of office: 31/12/2026		x

5.3.4.2.1.3 Equity ratio

The data relating to sub-paragraphs 6 and 7 of paragraph I of Article L. 22-10-9 of the French Commercial Code presented below were calculated in accordance with the updated AFEP guidelines in February 2021.

The remuneration retained for executive corporate officers is calculated based on elements paid or awarded during the year N, on a gross basis. It corresponds to the remuneration displayed each year in the remuneration summary tables presented in the Universal Registration Document and submitted to the vote of the shareholders: fixed, annual bonus, LTI, benefits in kind.

In order to present the largest possible panel, the workforce taken into account for calculating the ratio is, on the one hand, 100% of the company's workforce (Covivio lines), and, on the other hand, 100% of the French workforce in the Group (on the Covivio ESU line). All employees present during the full year, with the exception of work-study students and interns, were used for the calculation of a year. Part-time employees were considered on a full-time basis. The remuneration components used are: fixed, bonus, free shares or performance shares (valued according to the same method as for executive corporate officers), benefits in kind, profit-sharing and incentive scheme.

Table of ratios under I 6 and 7 of Article L. 22-10-9 of the French Commercial Code

Information on the remuneration of corporate officers	2019 fiscal year	2020 fiscal year	2021 fiscal year	2022 fiscal year	2023 fiscal year
Remuneration of the Chairman of the Board of Directors ^*	400,000	400,000	400,000	313,679	200,000
Change (in %) of the remuneration of the Chairman of the Board of Directors	-9.2%	0.0%	0.0%	-21.6%	-36.24%
Remuneration of the Chief Executive Officer: Christophe Kullmann	2,158,594	2,540,376	2,165,467	2,568,407	2,491,296
Change (in %) of the remuneration of the Chief Executive Officer	5.3%	17.7%	-14.8%	18.6%	-3.00%
Remuneration of the Deputy CEO: Olivier Estève	1,177,627	1,339,926	1,080,966	1,380,926	1,310,262
Change (in %) in the remuneration of the Deputy CEO	-0.3%	13.8%	-19.3%	27.7%	-5.12%
Remuneration of the Deputy CEO: Dominique Ozanne	1,171,895	1,235,326	1,041,055	N/A	N/A
Change (in %) of the remuneration of the Chief Executive Officer	7.0%	5.4%	-15.7%	N/A	N/A
Information on the scope of the public company: Covivio
Average employee remuneration	97,882	107,832	115,446	114,011	113,072
Change (in %) of the average employee remuneration	-9.2%	10.2%	7.1%	-1.2%	-0.82%
Ratio of Chairman of the Board to average employee remuneration	4.1	3.7	3.5	2.8	1.8
Change of the ratio (in %) compared with the prior fiscal year	0.0%	-9.2%	-6.6%	-20.6%	-35.71%
Ratio of Chairman of the Board to median employee remuneration	5.5	5.0	4.9	3.6	2.3
Change of the ratio (in %) compared with the prior fiscal year	-3.9%	-9.2%	-1.3%	-27.2%	-36.1%
Ratio of Christophe Kullmann to average employee remuneration	22.1	23.6	18.8	22.5	22.0
Change of the ratio (in %) compared with the prior fiscal year	16.0%	6.8%	-20.4%	20.1%	-2.2%
Ratio of Christophe Kullmann to median employee remuneration	29.7	31.7	26.7	29.4	28.6
Change of the ratio (in %) compared with the prior fiscal year	11.5%	6.8%	-15.9%	10.2%	-2.8%
Ratio of Olivier Estève to average employee remuneration	12.0	12.4	9.4	12.1	11.6
Change of the ratio (in %) compared with the prior fiscal year	9.8%	3.3%	-24.6%	29.4%	-4.3%
Ratio of Olivier Estève to median employee remuneration	16.2	16.7	13.3	15.8	15.0
Change of the ratio (in %) compared with the prior fiscal year	5.5%	3.3%	-20.4%	18.7%	-4.9%
Ratio of Dominique Ozanne to average employee remuneration	12.0	11.5	9.0	N/A	N/A
Change of the ratio (in %) compared with the prior fiscal year	17.8%	-4.3%	-21.3%	N/A	N/A
Ratio of Dominique Ozanne to median employee remuneration	16.1	15.4	12.8	N/A	N/A
Change of the ratio (in %) compared with the prior fiscal year	13.2%	-4.3%	-16.8%	N/A	N/A
Additional information on the extended scope: Covivio ESU
Average employee remuneration	96,202	106,310	108,980	107,791	107,828
Change (in %) of the average employee remuneration	-9.7%	10.5%	2.5%	-1.1%	0.0%
Ratio of Chairman of the Board to average employee remuneration	4.2	3.8	3.7	2.9	1.9
Change of the ratio (in %) compared with the prior fiscal year	0.5%	-9.5%	-2.4%	-20.7%	-36.3%
Ratio of Chairman of the Board to median employee remuneration	5.4	5.0	4.9	3.6	2.3
Change of the ratio (in %) compared with the prior fiscal year	-6.4%	-6.9%	-1.3%	-26.4%	-36.8%
Ratio of Christophe Kullmann to average employee remuneration	22.4	23.9	19.9	23.8	23.1
Change of the ratio (in %) compared with the prior fiscal year	16.6%	6.5%	-16.8%	19.9%	-3.0%
Ratio of Christophe Kullmann to median employee remuneration	28.9	31.7	26.6	29.7	28.5
Change of the ratio (in %) compared with the prior fiscal year	8.5%	9.5%	-15.9%	11.4%	-3.9%
Ratio of Olivier Estève to average employee remuneration	12.2	12.6	9.9	12.8	12.2
Change of the ratio (in %) compared with the prior fiscal year	10.4%	3.0%	-21.3%	29.2%	-5.1%
Ratio of Olivier Estève to median employee remuneration	15.8	16.7	13.3	16.0	15.0
Change of the ratio (in %) compared with the prior fiscal year	2.8%	5.9%	-20.4%	19.9%	-6.0%
Ratio of Dominique Ozanne to average employee remuneration	12.2	11.6	9.6	N/A	N/A
Change of the ratio (in %) compared with the prior fiscal year	18.5%	-4.6%	-17.8%	N/A	N/A
Ratio of Dominique Ozanne to median employee remuneration	15.7	15.4	12.8	N/A	N/A
Change of the ratio (in %) compared with the prior fiscal year	10.2%	-1.9%	-16.8%	N/A	N/A
Company performance
NAV EPRA NTA (€ per share)	105.8	100.1	106.4	106.4	84.1
Change (in %) compared with the prior fiscal year	6.1%	-5.4%	6.3%	0.0%	-21.0%
EPRA Earnings (€ per share)	5.31	4.21	4.35	4.58	4.47
Change (in %) compared with the prior fiscal year	4.5%	-20.7%	3.3%	5.3%	-2.4%
Dividend (€ per share)	4.80	3.60	3.75	3.75	3.30
Change (in %) compared with the prior fiscal year	4.3%	-25.0%	4.2%	0.0%	-12.0%
Asset value (€bn 100%)	24.0	25.7	26.7	26.1	23.1
Change (in %) compared with the prior fiscal year	5.3%	7.1%	3.9%	-2.2%	-11.5%
Net revenue (€bn 100%)	980.7	816.1	838.2	937.5	963.3
Change (in %) compared with the prior fiscal year	1.7%	-16.8%	2.7%	11.8%	2.8%

A review of the equity ratios carried out at the level of all Covivio European teams shows the following ratios for the Chief Executive Officer in 2023: CEO ratio to European average = 28.5 and CEO ratio to European median = 36.4.

5.3.4.2.2 Remuneration paid and/or allocated to non-executive corporate officers within a consolidated scope in respect of the fiscal year ended 31 December 2023

5.3.4.2.2.1 Information mentioned in Paragraph I of Article L. 22-10-9 of the French Commercial Code

Information on the Chairman of the Board of Directors

In accordance with the remuneration policy applicable to the Chairman of the Board of Directors, approved by the Combined General Meeting of Shareholders held on 20 April 2023 under Resolution 11, the remuneration of Covivio's Chairman of the Board of Directors, whose role is presented under 5.3.2.2.1 above, was reviewed on 21 July 2022 by the Board for the term of the new Chairman, at a total annual fixed amount of €200 thousand, based on an updated benchmark.

Alongside this fixed remuneration there is no variable portion, performance bonus or remuneration allocated in respect of his Directorship, or remuneration paid in treasury share.

In 2023, the compensation of Jean-Luc Biamonti was as follows:

―	€200 thousand in fixed remuneration (no benefits in kind).

In respect of the fiscal year ended 31 December 2023, the Chairman of the Board of Directors did not receive:

―	any variable or exceptional remuneration, or any benefits in kind;
―	any remuneration, remuneration or benefit by reason of taking up an office, end-of service, or changes to duties, or subsequent to exercising these, particularly in the form of pension commitments or other life annuities;
―	any remuneration paid or allocated by a company within Covivio's scope of consolidation as defined in Article L. 233-16 of the French Commercial Code.

As such, the relative proportion of fixed remuneration represents 100% of total remuneration.

The data relating to sub-paragraphs 6 and 7 of paragraph I of Article L. 22-10-9 of the French Commercial Code are presented in Section 5.3.4.2.1.3 above.

Information on the Directors

In accordance with the remuneration policy applicable to Directors presented above, the company paid for the fiscal year ended on 31 December 2023 to the members of the Board of Directors (including the Non-voting Directors exercising their functions up to 20 April 2023) for their participation in the meetings of the Board of Directors, the work of the latter and the specialist Committees set up within it, a total gross remuneration of €581,403, the breakdown of which is indicated in Sections 5.3.4.2.2.2 and 5.3.4.4 below.

The gross mean remuneration allocated per Board member, calculated on the basis of all executive corporate officers (including Non-voting members) having received remuneration in respect of the 2023 fiscal year, was €41,529.

A single lump sum of 12.8% and employment deductions of 17.2%, i.e. a total of 30%, were deducted from remuneration paid to members of the Board of Directors, natural persons who are tax resident in France, representing a total sum of €90,940 in 2023.

A single lump sum of 12.8% was deducted from remuneration paid to members of the Board of Directors (including non-voting members), natural persons who are not tax resident in France, representing a total sum of €18,979 in 2023.

These deductions, totalling €109,919, were paid directly by the company to the French tax authorities.

It is specified that:

―	Jean-Luc Biamonti and Christophe Kullmann have received no remuneration in respect of their Directorship;
―	Predica, a Covivio Director, is also a member of the Supervisory Board of Covivio Hotels, and received a gross sum of €3,300 from Covivio Hotels in respect of this position in 2023;
―	ACM Vie, a Covivio Director, is also a member of the Supervisory Board of Covivio Hotels, and received a gross sum of €3,100 from Covivio Hotels in respect of this position in 2023.

In respect of the fiscal year ended 31 December 2023, Directors did not receive:

―	any exceptional remuneration or benefits in kind;
―	any remuneration, remuneration or benefit by reason of taking up an office, end-of service, or changes to duties, or subsequent to exercising these, particularly in the form of pension commitments or other life annuities.

As such, the relative proportion of fixed remuneration represents 30% of total remuneration.

With 43% women, the company's Board of Directors is compliant with the provisions of Articles L. 225-69-1 and L. 22-10-21 of the French Commercial Code.

5.3.4.2.2.2 Summary tables of the remuneration of non-executive corporate officers, prepared in accordance with Appendix 4 of the Afep-Medef Code

The information and tables below:

―	present a summary of the total remuneration and benefits in kind paid or allocated during the fiscal year ended 31 December 2023 to Jean-Luc Biamonti (Chairman of the Board of Directors) as well as to each Director in their capacity of non-executive corporate officers;
―	were prepared in accordance with the revised version of the Afep-Medef Code published on 20 December 2022 and the AMF Recommendations.

Table 3 - Table on the remuneration of non-executive corporate officers paid and/or allocated by the company and companies within its scope of consolidation under the definition of Article L. 233-16 of the French Commercial Code -

Afep-Medef Code standards	Fiscal year ending 31 December 2022		Fiscal year ended 31 December 2023
Non-executive corporate officers (in office in 2023)	Amount allocated	Amount paid	Amount allocated	Amount paid
Jean-Luc Biamonti
Remuneration (fixed, variable) in respect of his Covivio Directorship	€43,970	€43,970	€0	€0
Other remuneration (from 21 July 2022)	€88,889	€88,889	€200,000	€200,000
Total	€132,859	€132,859	€200,000	€200,000
ACM Vie represented by Stéphanie de Kerdrel ⁽¹⁾
Remuneration (fixed, variable) in respect of his Covivio Directorship	€44,000	€44,000	€49,000	€49,000
Other remuneration in respect of his position on the Supervisory Board of Covivio Hotels	€3,500	€3,500	€3,100	€3,100
Total	€47,500	€47,500	€52,100	€52,100
Romolo Bardin
Remuneration (fixed, variable) in respect of his Covivio Directorship	€63,000	€63,000	€59,000	€59,000
Other remuneration	€0	€0	€0	€0
Total	€63,000	€63,000	€59,000	€59,000
Covéa Coopérations represented by Olivier Le Borgne ⁽¹⁾
Remuneration (fixed, variable) in respect of his Covivio Directorship	€41,000	€41,000	€39,000	€39,000
Other remuneration	€0	€0	€0	€0
Total	€41,000	€41,000	€39,000	€39,000
Christian Delaire
Remuneration (fixed, variable) in respect of his Covivio Directorship	€60,290	€60,290	€69,000	€69,000
Other remuneration	€0	€0	€0	€0
Total	€60,290	€60,290	€69,000	€69,000
Delfin SARL, represented by Giovanni Giallombardo ⁽²⁾
Remuneration (fixed, variable) in respect of his Covivio Directorship (from 21 July 2022)	€18,696	€18,696	€22,000	€22,000
Other remuneration	€0	€0	€0	€0
Total	€18,696	€18,696	€22,000	€22,000
Alix d'Ocagne
Remuneration (fixed, variable) in respect of her Covivio Directorship	€40,348	€40,348	€43,312	€43,312
Other remuneration	€0	€0	€0	€0
Total	€40,348	€40,348	€43,312	€43,312
Sylvie Ouziel
Remuneration (fixed, variable) in respect of her office as Director of Covivio	€42,000	€42,000	€43,000	€43,000
Other remuneration	€0	€0	€0	€0
Total	€42,000	€42,000	€43,000	€43,000
Olivier Piani
Remuneration (fixed, variable) in respect of his Covivio Directorship	€55,348	€55,348	€49,312	€49,312
Other remuneration	€0	€0	€0	€0
Total	€55,348	€55,348	€49,312	€49,312
Predica represented by Jérôme Grivet ⁽¹⁾
Remuneration (fixed, variable) in respect of his Covivio Directorship	€44,000	€44,000	€42,000	€42,000
Other remuneration in respect of his position on the Supervisory Board of Covivio Hotels	€3,300	€3,300	€3,300	€3,300
Total	€47,300	€47,300	€45,300	€45,300
Patricia Savin
Remuneration (fixed, variable) in respect of her office as Director of Covivio	€35,000	€35,000	€38,000	€38,000
Other remuneration	€0	€0	€0	€0
Total	€35,000	€35,000	€38,000	€38,000
Daniela Schwarzer
Remuneration (fixed, variable) in respect of her Covivio Directorship (from 21 April 2022)	€36,288	€36,288	€41,000	€41,000
Other remuneration	€0	€0	€0	€0
Total	€36,288	€36,288	€41,000	€41,000
Catherine Soubie
Remuneration (fixed, variable) in respect of her office as Director of Covivio	€54,348	€54,348	€60,507	€60,507
Other remuneration	€0	€0	€0	€0
Total	€54,348	€54,348	€60,507	€60,507
TOTAL	€673,977	€673,977	€761,531	€761,531

⁽¹⁾ Compensation was paid to the company and not to its permanent representative.

⁽²⁾ Compensation was paid to the company's permanent representative.

5.3.4.3 Remuneration paid and/or allocated to the Chairman of the Board of Directors and members of the General Management in respect of the fiscal year ended 31 December 2023 ("individual" ex-post Say on Pay)

In an "individual" ex-post Say on Pay vote pursuant to Article L. 22-10-34, II of the French Commercial Code, the fixed, variable and exceptional remuneration that make up total remuneration and benefits in kind paid in respect of the fiscal year ended 31 December 2023 or allocated in respect of the same year, to the Chairman of the Board of Directors, Chief Executive Officer and Deputy CEO of the company, are the subject of separate draft resolutions (Resolutions 7, 8 and 9) submitted for the approval of the Combined General Meeting on 17 April 2024.

5.3.4.3.1 Remuneration paid and/or allocated by the company to Jean-Luc Biamonti in his capacity as Chairman of the Board of Directors in respect of the fiscal year ended 31 December 2023 (Resolution 7)

Compensation components due for the year ended	Amounts, or valuation for accounting purposes, subject to vote	Presentation
Fixed remuneration	€200 thousand paid in 2023	This fixed remuneration was determined by the Board when Jean-Luc Biamonti was appointed as Chairman on 21 July 2022.
Annual variable remuneration	€0	Not applicable
Deferred variable remuneration	€0	Not applicable
Multiannual variable remuneration	€0	Not applicable
Extraordinary remuneration	€0	Not applicable
Share options	N/A	Not applicable
Performance shares	€0	Not applicable
Remuneration allocated in respect of Directorship	€0	Not applicable
Valuation of benefits of any kind	€0	Not applicable
Severance pay	€0	Not applicable
Remuneration for non-compete clause	N/A	There is no non-compete clause.
Supplementary pension scheme	€0	There is no supplementary pension scheme in place.
Employment contract	€0	There is no employment contract.

5.3.4.3.2 Remuneration paid and/or allocated by the company to Christophe Kullmann in his capacity as Chief Executive Officer in respect of the fiscal year ended 31 December 2023 (Resolution 8)

Elements of remuneration due for the fiscal year ended	Amounts, or valuation for accounting purposes, subject to vote	Presentation
Fixed remuneration	€800 thousand paid in 2023	This fixed remuneration was approved upon his reappointment for a four-year term, from 1 January 2023. It remains unchanged in 2024.
Annual variable remuneration	€701 thousand	The target variable remuneration equals 100% of the fixed annual salary. An upside of as much as 50% of the target is provided for in the event of objectives being exceeded. It is, as the case may be, paid in free shares, themselves subject to a condition of remaining in the company for three years after the allocation. After examining performance in 2023 described in Section 5.3.4.2.1.1.2 of the 2023 Universal Registration Document, the Board approved a 2023 bonus that represents 88% of the target. It will be paid in cash. The payment of this annual variable remuneration is subject to approval by the Combined General Meeting of 17 April 2024 of the remuneration components for Christophe Kullmann.
Deferred variable remuneration	€0	Not applicable
Multiannual variable remuneration	€0	Not applicable
Extraordinary remuneration	€0	Not applicable
Share options	N/A	Not applicable
Performance shares	€1,066 thousand	The principles for the allocation of performance shares as well as the performance conditions are described in Section 5.3.4.2.1.1.3 of the 2023 Universal Registration Document.
Remuneration allocated in respect of Directorship	€0 thousand	Not applicable
Valuation of benefits of any kind	€40 thousand	This amount comprises a company car and GSC unemployment insurance.
Severance pay	€0	The theoretical remuneration amount is equal to 12 months of total remuneration (fixed salary and the variable portion), plus one month of additional remuneration per year of employment with the company. Receiving this remuneration is subject to achieving strict internal and external performance criteria:
		• 50% of the theoretical remuneration amount is linked to changes in the NAV during the three fiscal years prior to the termination of office;
		• 50% of the theoretical amount of the remuneration would be conditioned by achievement of the targeted levels of performance for the three fiscal years preceding the cessation of functions. The potential remuneration such as described above (and detailed in Sections 5.3.4.1.2.1.6. and 5.3.4.2.1.1.4. of the 2023 Universal Registration Document) would be paid only in the event of forced departure due to a change of control or strategy. This would exclude cases in which the Chief Executive Officer leaves the company at his own initiative, changes roles within the Group or exercises rights to retirement benefits on short notice. On the renewal of his term of office as Chief Executive Officer from 1 January 2023, it was approved by the Board of Directors on 24 November 2022 and approved by shareholders at the Combined General Meeting of 20 April 2023 in Resolution 12.
Remuneration for non-compete clause	N/A	There is no non-compete clause.
Supplementary pension scheme	€0	There is no supplementary pension scheme in place.
Employment contract	€0	There is no employment contract.

5.3.4.3.3 Remuneration paid and/or allocated by the company to Olivier Estève in his capacity as Deputy CEO in respect of the fiscal year ended 31 December 2023 (Resolution 9)

Elements of remuneration due for the fiscal year ended	Amounts, or valuation for accounting purposes, subject to vote	Presentation
Fixed remuneration	€460 thousand paid in 2023	This fixed remuneration was approved upon his reappointment for a four-year term, from 1 January 2023. It remains unchanged in 2024.
Annual variable remuneration	€391 thousand	The target variable remuneration equals 100% of the fixed annual salary.
		An upside of as much as 50% of the target is provided for in the event of objectives being exceeded. With a view to aligning with the interests of shareholders, where applicable, it is paid in free shares, which themselves are conditional on the recipient remaining in the company's employ for three years after the allocation.
		After examining performance in 2023 described in Section 5.3.4.2.1.1.2 of the 2023 Universal Registration Document, the Board approved a 2023 bonus that represents 85% of the target. It will be paid in cash.
		The payment of this annual variable remuneration is subject to approval by the Combined General Meeting of 17 April 2024 of the remuneration components for Olivier Estève.
Deferred variable remuneration	€0	Not applicable
Multiannual variable remuneration	€0	Not applicable
Extraordinary remuneration	€0	Not applicable
Share options	N/A	Not applicable
Performance shares	€460 thousand	The principles for the allocation of performance shares as well as the performance conditions are described in Section 5.3.4.2.1.1.3 of the 2023 Universal Registration Document.
Remuneration allocated in respect of Directorship	€0	Not applicable
Valuation of benefits of any kind	€41 thousand	This amount comprises a company car and GSC unemployment insurance.
Severance pay	€0	This potential compensation is granted under exactly the same conditions as those pertaining to the Chief Executive Officer, described above and in Sections 5.3.4.1.2.1.6 and 5.3.4.2.1.1.4 of the 2023 Universal Registration Document.
		On the renewal of his term of office as Deputy CEO from 1 January 2023, it was approved once again by the Board of Directors on 24 November 2022 and by shareholders at the Combined General Meeting of 20 April 2023 in Resolution 13.
Remuneration for non-compete clause	N/A	There is no non-compete clause.
Supplementary pension scheme	€0	There is no supplementary pension scheme in place.
Employment contract	€0	There is no employment contract.

5.3.4.4 Remuneration paid and/or allocated to Non-voting members in respect of the fiscal year ended 31 December 2023

	Fiscal year ending 31 December 2022		Fiscal year ended 31 December 2023
Non-voting members	Amounts allocated	Amount paid	Amounts allocated	Amount paid
Sergio Erede
Remuneration (fixed, variable) in respect of his Covivio non-voting Directorship until 20 April 2023	€54,000	€54,000	€17,584	€17,584
Other remuneration	€0	€0	€0	€0
Total	€54,000	€54,000	€17,584	€17,584
Ariberto Fassati
Compensation (fixed, variable) for his term of office as non-voting member of Covivio until 20 April 2023	€47,000	€47,000	€8,688	€8,688
Other remuneration	€0	€0	€0	€0
Total	€47,000	€47,000	€8,688	€8,688
TOTAL	€101,000	€101,000	€26,272	€26,272

5.3.5 Specific procedures relating to shareholder participation in General Meetings and summary of current financial delegations and authorisations in the area of capital increases

5.3.5.1 Special procedures for shareholder participation in General Meetings

Shareholder participation at General Meetings is governed by the legal and regulatory provisions in force and applicable to companies whose shares are listed for trading on a regulated market.

These procedures are described in Article 22 of the company's Articles of Association, the content of which is presented in full in Section 6.2.1.16 of the Universal Registration Document. It should be noted that Covivio has maintained, at the end of its General Meeting of 17 April 2015, the "One share = one vote" principle, approved by the shareholders by waiving the automatic allocation of the double voting right provided by the Florange law of 29 March 2014.

The terms and conditions for participation in General Meetings are also detailed in the meeting notices and convening notices available on the Covivio website in the section dedicated to General Meetings.

5.3.5.2 Summary of financial delegations and authorisations currently in force in the area of capital increases

The General Meeting regularly grants the Board of Directors financial delegations and authorisations to increase the company's share capital by issuing shares and or securities convertible to equity.

In accordance with the provisions of Article L. 225-37-4 3° of the French Commercial Code, we hereby present to you a summary of these delegations and authorisations granted by the Combined General Meetings on 21 April 2022 and 20 April 2023 concerning capital increases and the use made of them in 2023 and after the year end.

Resolution	Description of the delegation and/or authorisation granted by the Combined General Meeting of 21 April 2022	Validity	Use in 2023 and 2024
Twenty-sixth resolution	Authorisation to be granted to the Board of Directors to allocation new or existing free shares to employees and/or corporate officers of the company and its affiliates, with waiver of the shareholders' preferential subscription right in respect of the shares to be issued. Cap set at 1% of the share capital on the day of the decision to allocate them by the Board of Directors.	38 months Expiration 21/06/2025	2023: Allocation of 166,087 free shares	2024: Allocation of 80,643 free shares
Twenty-third resolution	Delegation of authority granted to the Board of Directors to increase the company's share capital through the capitalisation of reserves, profits or premiums. Maximum nominal amount of capital increases set at €28,400,000. Suspension in the event of a public tender offer or exchange offer for the company's shares.	26 months Expiration on 20/06/2025		Unused
Twenty-fifth resolution	Delegation of authority to the Board of Directors to issue shares and/or securities convertible to equity, maintaining the shareholders' preferential subscription right. Nominal capital increase cap set at €71 million. The nominal amount of the total debt instruments convertible to equity likely to be issued may not exceed €750 million (the total cap for all debt securities that may be issued pursuant to said delegation and pursuant to delegations of authority granted under Resolutions 26, 27 and 28). Suspension in the event of a public tender offer or exchange offer for the company's shares.	26 months Expiration on 20/06/2025		Unused
Twenty-sixth resolution	Delegation of authority to the Board of Directors to issue, through public offering, company shares and/or securities convertible into equity, with waiver of shareholders' preferential subscription rights and a mandatory priority period for share issues. The maximum nominal value of increases in the company's share capital may not exceed €28.4 million. In the absence of a priority period granted to shareholders, overall ceiling of 10% of the share capital with Resolutions 27 and 28. The nominal cap on the issue of debt securities convertible into equity set at €750 million (set against the overall cap for all debt securities set by Resolution 25). Suspension in the event of a public tender offer or exchange offer.	26 months Expiration on 20/06/2025		Unused
Twenty -seventh resolution	Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, with waiver of shareholders' preferential subscription rights, in the event of a public exchange offer initiated by the company. Maximum nominal amount of capital increases set at 10% of the company's share capital, overall ceiling common to Resolution 28, and in the case of issues carried out without a priority period having been granted to the shareholders, with Resolution 26. The nominal amount of the issue of debt securities convertible into equity set at €750 million (counting against the overall cap for all issues of debt securities set by Resolution 25). Suspension in the event of a public tender offer or exchange offer for the company's shares.	26 months Expiration on 20/06/2025		Unused
Twenty-eighth resolution	Delegation of authority to the Board of Directors to issue shares and/or transferable securities convertible into equity, to pay for the contributions in kind granted to the company consisting of capital shares or transferable securities convertible into equity. Maximum nominal amount of capital increases set at 10% of the company's share capital, overall cap common to Resolution 27 and, in the case of issues carried out without a priority period having been granted to shareholders, with Resolution 26. The nominal amount of the issue of debt securities convertible into equity set at €750 million (counting against the overall cap for all debt securities set by Resolution 25). Suspension in the event of a public tender offer or exchange offer for the company's shares.	26 months Expiration on 20/06/2025		Unused
Twenty-ninth resolution	Delegation of authority granted to the Board of Directors to carry out capital increases reserved for employees of the company and the companies of the Covivio group covered by a company savings plan, with waiver of shareholders' preferential subscription right. Maximum nominal amount of the capital increase set at €500 thousand.	26 months Expiration on 20/06/2025		Unused

5.3.6 Elements that could be relevant in the event of a public offer

In accordance with the provisions of Article L. 22-10-11 of the French Commercial Code, the elements likely to have an impact in the event of a takeover bid or exchange offer are set out below.

5.3.6.1 Structure of the company's share capital

The structure of the share capital is presented in Sections 6.3.2 and 6.3.3 of the Universal Registration Document.

5.3.6.2 Statutory restrictions on the exercise of voting rights and share transfers or clauses of agreements brought to the attention of the company pursuant to Article L. 233-11 of the French Commercial Code

Article 8.1 of the Articles of Association establishes an obligation on every natural person or legal entity, acting alone or in concert, to declare to the company every instance in which a shareholder's stake exceeds the threshold of 1% (or any multiple of this percentage) of the capital or the voting rights relating thereto, including the legal and regulatory thresholds. Such notification must be made by registered letter with return receipt addressed to the registered office within the time limit stipulated in Article R. 233-1 of the French Commercial Code. Mutual fund management firms must carry out such reporting for the entirety of the shares of the company held by the funds that they manage.

Unless a declaration has been made under the conditions outlined above, shares above the fraction which should have been declared will have no voting rights attached for any General Meeting held within two years after the date of regularisation of the declaration, at the request, recorded in the minutes of the General Meeting, of one or several shareholders holding together or separately at least 1% of the share capital or voting rights of the company.

Article 8-2 of the company's Articles of Association provides (i) for legal entities directly or indirectly holding more than 10% of the share capital and (ii) for shareholders indirectly holding, through the company, a percentage of the share capital or dividend rights of listed companies for real estate investment in Spain ("SOCIMIs") at least equal to that referred to in Article 9-3 of the law of the Kingdom of Spain 11/2009 of 26 October 2009, and whose shares are not registered on or before the second business day preceding the date of any General Meeting of Shareholders of the company, a cap on voting rights based on the number of shares registered in registered form on this date, it being specified that they must ensure that the entities they control within the meaning of Article L. 233-3 of the French Commercial Code have all the shares of the company they own in registered form. This situation may be resolved by ensuring that all the shares held directly or indirectly are registered no later than the second working day prior to the next General Meeting.

Article 8-3 of the Articles of Association states that in order to determine the thresholds for capital and voting rights whose crossing is to be declared under Article 8, to apply the assimilation cases and calculation methods stipulated in Articles L. 233-7 and L. 233-9 of the French Commercial Code and the provisions of Articles 223-11 et seq. of the General Regulations of the AMF.

At the date of the Universal Registration Document, the company is not aware of clauses of agreements providing for preferential disposal or acquisition terms for shares involving at least 0.5% of the capital or voting rights in the company.

5.3.6.3 Direct or indirect investments in the company's equity that are known to the company pursuant to Articles L. 233-7 and L. 233-12 of the French Commercial Code

These elements are described in Section 6.3.4 of the Universal Registration Document.

5.3.6.4 Holders of securities providing special control rights and a description thereof

None.

5.3.6.5 Control mechanisms provided for in any employee shareholding scheme where rights of control are not exercised by the latter

None.

5.3.6.6 Agreements between shareholders that are known to the company and that could restrict the transfer of shares and the exercise of voting rights

There are no agreements between shareholders that are known to the company and that could restrict the transfer of shares and the exercise of company voting rights.

5.3.6.7 Rules applicable to the appointment and replacement of members of the Board of Directors and changes in the company's Articles of Association

The company's Articles of Association on these matters do not differ from the generally accepted guidelines for French public limited companies.

5.3.6.8 Powers of the Board of Directors, in particular as regards the issue or redemption of shares

This information is provided in Section 5.3.2.2.2 above and Sections 6.3.8 and 6.5.1.4 of the Universal Registration Document. The delegations of authority granted by the General Meeting to the Board of Directors in the area of capital increases are mentioned in Section 5.3.5.2 above. Unless authorised by the General Meeting of the shareholders, these are suspended from the date on which a third party submits a proposed public offer for the company's securities until the end of the offer period (with the exception of delegations of authority relating to employee shareholding).

5.3.6.9 Agreements entered into by the company that are amended or terminated in the event of a change of control of the company, unless such disclosure, except in the case of a legal obligation to disclose, would seriously affect its interests

The majority of Covivio's financing agreements contain clauses concerning a change of control, which, if triggered, could result in the cancellation or early repayment of the debts concerned, provided the lenders so require.

5.3.6.10 Agreements setting out any compensation payable to members of the Board of Directors or employees in the event that they resign or are dismissed without cause or if their employment ceases due to a public offering

Unlike the remuneration awarded under certain circumstances to the company's executive corporate officers detailed in Sections 5.3.4.1.2.1.6 and 5.3.4.2.1.1.4 above, there are no specific agreements stipulating remuneration on termination of a Directorship or applicable to employees.

5.4 Statutory Auditors' special report on related-party agreements and regulated commitments

General Meeting called to approve the financial statements for the fiscal year ended 31 December 2023

To the General Meeting of Covivio,

In our capacity as Statutory Auditors of your company, we hereby report on related-party agreements and commitments.

We are required to inform you, based on the information we have been given, of the terms and conditions and interest for the company of those agreements and commitments indicated to us, or that we may have discovered during our assignment. We are not required to comment on whether they are beneficial or appropriate or to ascertain if any other agreements and commitments exist. It is your responsibility, under Article R. 225-31 of the French Commercial Code, to assess the interest of entering into these agreements with a view to their approval.

In addition, it is our responsibility to provide you with the information provided for in Article R. 225-31 of the French Commercial Code relating to the performance, during the past fiscal year, of previously approved agreements by the General Meeting.

We have performed the procedures that we deemed necessary to comply with the professional standards applicable in France to such engagements. These consisted of ascertaining that the information provided to us was consistent with that in the source documents from which it was drawn.

Agreements submitted for the approval of the General Meeting

In accordance with Article L. 225-40 of the French Commercial Code, we were advised of the following agreements signed during the year, which were previously approved by your Board of Directors.

With the company Assurances du Crédit Mutuel Vie SA, a Director of your company, in the presence of Hotel N2, a subsidiary of your company

Person concerned

The company Assurances du Crédit Mutuel Vie SA, a Director of your company represented by Stéphanie de Kerdrel, and a shareholder of Hotel N2.

Nature, purpose, terms and conditions

Shareholders' agreement authorised by your Board of Directors on 21 February 2023 and concluded on 21 March 2023.

The purpose of the shareholders' agreement is to govern the relations of the shareholders of Hotel N2, owner of the hotel business managed by Zoku, as part of the Stream Building mixed operation for the development of a real estate complex for use as shops, offices, hotel residences, events space and a rooftop, located in the ZAC Clichy-Batignolles in Paris's 17 ^th arrondissement.

Interest of the agreement for the company

Your Board of Directors justified this agreement as follows: the shareholders' agreement makes it possible to pursue the strategic project for your company in terms of value creation potential.

Agreements and commitments previously approved by the General Meeting

In accordance with Article R. 225-30 of the French Commercial Code, we have been informed that the execution of the following agreements, already approved by the General Meeting in previous fiscal years, continued during the past fiscal year.

With MMA IARD and Generali Vie, in the presence of Covivio Alexanderplatz SÀRL, a subsidiary of your company

Person concerned

Covéa Coopérations, a Director of your company represented by Mr Olivier Le Borgne, and an affiliate of MMA IARD.

a) Nature, purpose, terms and conditions

Shareholders' agreement relating to Covivio Alexanderplatz SÀRL authorised by your Board of Directors on 25 November 2020 and concluded on 8 June 2021, as modified by amendments no 1 of 29 July 2022 and no 2 of 14 October 2022, authorised by your Board of Directors on 21 July 2022.

The purpose of the shareholders' agreement is to organise the relationships between the shareholders of Covivio Alexanderplatz SÀRL within the framework of the development project at Alexanderplatz in Berlin of a real estate complex comprising approximately 60,000 m ² of offices, shops and housing held by Covivio Alexanderplatz SÀRL (the "Project").

Amendment no 1 is intended to reflect the change to the terms and conditions for financing the project, resulting in an increase in equity contributions by the shareholders of Covivio Alexanderplatz SÀRL.

Amendment no 2 is intended to reflect the changes agreed between the parties to the terms and conditions of the Project and relating in particular to (i) the real estate development contract, (ii) the refinancing of the Project. and (iii) the service agreements entered into by Covivio Alexanderplatz SÀRL with the Covivio group.

b) Nature, purpose, terms and conditions

Subordination agreement authorised by your Board of Directors on 8 April 2021 and concluded on 8 June 2021.

The purpose of the subordination contract, which forms part of the Project, is to subordinate payments, as is customary, to shareholders in Covivio Alexanderplatz SÀRL, (including any intra-group loans and/or advances in shareholders' current accounts that may be granted to Covivio Alexanderplatz SÀRL) to the settlement of sums owed to the company under the terms of the transitional financing of the Project.

c) Nature, purpose, terms and conditions

Investment protocol authorised by your Board of Directors on 25 November 2020 and concluded on 23 December 2020, as modified by Amendments no 1 of 22 April 2021, and no 2 of 8 June 2021 authorised by your Board of Directors on 20 April 2021.

The investment memorandum of understanding, which comes under the Project, aims to organise the terms and conditions for the implementation of the Project led by Covivio Alexanderplatz SÀRL. The main purpose of Amendment no 1 is to postpone the deadline for achieving the conditions precedent from 20 April 2021 to 20 July 2021. The main purpose of Amendment no 2 is (i) to define the terms and conditions for transitional financing of the Project by your company, and (ii) to lift the condition precedent in the investment protocol relating to the obtaining of finance which will, if applicable, involve bank refinancing.

With Covivio Alexanderplatz SÀRL, a subsidiary of your Company, and BRE/GH II Berlin II Investor GmbH, an indirect subsidiary of Covivio Hotels

Persons concerned

Mr Christophe Kullmann, Chief Executive Officer and Director of your company and Chairman of the Supervisory Board of Covivio Hotels, and Mr Olivier Estève, Deputy CEO of your company, member of the Supervisory Board of Covivio Hotels and Manager of Covivio Alexanderplatz SÀRL, Predica, Director of your company represented by Mr Jérôme Grivet and member of the Supervisory Board of Covivio Hotels, represented by Mr Emmanuel Chabas, and Assurances du Crédit Mutuel Vie SA, Director of your company represented by Ms Stéphanie de Kerdrel, and member of the Supervisory Board of Covivio Hotels represented by Mr François Morrisson.

a) Nature, purpose, terms and conditions

Framework Deed authorised by your Board of Directors on 20 February 2019 and signed on 26 April 2019.

The purpose of the framework deed, which is part of the Project, is to define the terms and conditions for the disposal of the land reserve and existing businesses.

b) Nature, purpose, terms and conditions

Neighbour Agreement of 26 April 2019, and amendment no 1 concluded on 8 and 9 April 2020, by the legal representatives of Covivio Alexanderplatz SÀRL and on 21 April 2020 by the legal representative of BRE/GH II Berlin II Investor GmbH, authorised, respectively by your Board of Directors on 20 February 2019 and 13 February 2020.

The Neighbour Agreement aims to regulate neighbourhood relations in connection with the execution of the Project and also provides for the payment by Covivio Alexanderplatz SÀRL to BRE/GH II Berlin II Investor GmbH of €26.5 million in compensation for the complete demolition of certain businesses and the partial demolition of Primark.

Addendum 1 to the Neighbour Agreement confirms the effective application of the Neighbour Agreement and sets out the agreements signed between the parties as part of the Project, mainly that:

1) Covivio Alexanderplatz SÀRL agrees to cover part of the costs to build an extension to one of the restaurants at the Park Inn Hotel, in order to accommodate another restaurant for the hotel to replace the one that will be demolished as part of the Project; and

2) Covivio Alexanderplatz SÀRL agrees to offset any operating losses incurred by the hotel operator due to the relocation of this restaurant.

With Indigo Infra

Person concerned

The company Predica, a Director of your Company represented by Mr Jérôme Grivet, indirectly holding more than 10% of the share capital and voting rights of Indigo Infra.

a) Nature, purpose, terms and conditions

Disposal agreement authorised by your Board of Directors on 20 April 2021 and concluded on 11 June 2021.

The disposal agreement sets out the terms and conditions for the sale by your company to Indigo Infra of 100% of the shares and voting rights of the company République, 100% of the shares and voting rights of SCI Esplanade Belvédère II and 50% of the shares and voting rights of the company Gespar. The transaction took place on 25 January 2022.

b) Nature, purpose, terms and conditions

Memorandum of understanding authorised by your Board of Directors on 20 April 2021 and concluded on 25 January 2022.

The purpose of the memorandum of understanding between your company and Indigo Infra is to set out the terms and conditions under which your company undertakes to examine the solutions for operating car parks and gentle mobility at some of its sites.

With the companies Predica and Fédération (transferred under a universal asset transfer to your company on 30 June 2022) in the presence of SCI Federimmo and SCI 11 Place de l'Europe

Person concerned

Predica, a Director of your company represented by Mr Jérôme Grivet.

Nature, purpose, terms and conditions

Share transfer agreements authorised by your Board of Directors on 25 November 2021 and concluded on 20 December 2021.

The share sale agreements cover 60% of the share capital and voting rights of SCI Federimmo, owner of an office building in Paris's 15 ^th arrondissement and 50.09% of the share capital and voting rights of SCI 11 place de l'Europe, owner of a real estate complex in Vélizy-Villacoublay. The shares were transferred on 17 May 2022.

With OPCI Predica Bureaux, in the presence of Predica and/or the company 6 rue Fructidor

Person concerned

Predica, a Director of your Company represented by Mr Jérôme Grivet, and a shareholder of OPCI Predica Bureaux.

Nature, purpose, terms and conditions

Investment memorandum of understanding and partners' agreement for 6 rue Fructidor authorised by your Management Board Meeting of 23 July 2019 and concluded on 29 October 2019.

The investment memorandum of understanding and the shareholders' agreement have the purpose of governing the relationships between the shareholders in 6 rue Fructidor in the framework of the redevelopment and apportionment of an office building (Seine-Saint-Denis, France). The investment memorandum of understanding expired on 31 January 2023.

With Assurances du Crédit Mutuel Vie SA, in the presence of SCI N2 Batignolles

Person concerned

The company Assurances du Crédit Mutuel Vie SA, a Director of your company represented by Ms Stéphanie de Kerdrel, and a shareholder of SCI N2 Batignolles.

Nature, purpose, terms and conditions

Shareholders' agreement relating to the SCI N2 Batignolles authorised by your Board of Directors on 14 February 2018 and concluded on 25 May 2018.

The purpose of the shareholders' agreement is to govern relations between the partners of SCI N2 Batignolles as part of the "N2" transaction to share a real estate asset under construction in the ZAC Clichy Batignolles in Paris (17 ^th arrondissement).

With Assurances du Crédit Mutuel Vie SA, in the presence of SCI 15 rue des Cuirassiers and SCI 9 rue des Cuirassiers

Person concerned

The company Assurances du Crédit Mutuel Vie SA, a Director of your company represented by Ms Stéphanie de Kerdrel, and a shareholder of SCI 15 rue des Cuirassiers and SCI 9 rue des Cuirassiers.

Nature, purpose, terms and conditions

Shareholders' agreements relating to SCI 15 rue des Cuirassiers and SCI 9 rue des Cuirassiers, authorised by the Management Board meeting of 19 October 2017 and concluded on 7 December 2017.

The shareholders' agreements were intended to organise the shareholder relationships within SCI 15 rue des Cuirassiers and SCI 9 rue des Cuirassiers with regard to the Silex 1 and Silex 2 developments involving apportionment of property assets located in Lyon Part-Dieu.

With SCI DS Campus, in the presence of Predica, SCI Latécoère and SCI Latécoère 2

Person concerned

The company Predica, a Board member of your company represented by Mr Jérôme Grivet and a shareholder of SCI DS Campus.

a) Nature, purpose, terms and conditions

Amendment no 3 to the shareholders' agreement of 18 June 2015 relating to the SCI Latécoère 2, authorised by your Board of Directors on 17 October 2019 and signed on 12 December 2019.

Amendment no 3 to the shareholders' agreement of 18 June 2015 is intended to govern relations between the shareholders in SCI Latécoère 2 as part of the project to extend the Dassault Systèmes' campus through the construction of a new building complex, accompanied by a ten-year extension of the leases on the existing assets of the campus.

b) Nature, purpose, terms and conditions

Amendment no 1 to the shareholders' agreement of 19 October 2012 relating to the SCI Latécoère, authorised by your Board of Directors on 19 February 2015 and concluded on 20 April 2015.

Amendment no 1 to the shareholders' agreement of 19 October 2012 is intended to govern the relations between the shareholders in SCI Latécoère as part of the "DS Campus" project to share a real estate complex in Vélizy-Villacoublay.

With SCI New Vélizy, in the presence of Predica

Person concerned

The company Predica, a Board member of your Company represented by Mr Jérôme Grivet and a shareholder of SCI New Vélizy.

Nature, purpose, terms and conditions

Shareholders 'agreement relating to the SCI Lenovilla authorised by your Board of Directors on 25 April 2012 and concluded on 1 January 2013.

The purpose of the shareholders' agreement is to govern the relations between shareholders in SCI Lenovilla in connection with the "New Vélizy" transaction to share a real estate complex in Vélizy-Villacoublay.

Paris-La Défense, 18 March 2024

The Statutory Auditors
MAZARS

Claire Gueydan-O'Quin

ERNST & YOUNG et Autres

Anne Herbein

5.5 Report of the Statutory Auditors on the share capital reduction

General Meeting of 17 April 2024

Twenty-first resolution

To the General Meeting of Covivio,

In our capacity as Statutory Auditors of your company and in compliance with Article L. 22-10-62 of the French Commercial Code (Code de commerce) in respect of the reduction in capital by the cancellation of repurchased shares, we hereby report on our assessment of the terms and conditions for the proposed reduction in capital.

Your Board of Directors requests that it be authorised, for a period of eighteen months starting on the date of this General Meeting, to cancel the shares purchased by the company pursuant to the authorisation to purchase its own shares under the aforementioned article, representing a maximum amount of 10% of its total share capital per period of eighteen months.

We have performed the procedures that we deemed necessary to comply with the professional standards applicable in France to such engagements. The procedures consisted in verifying that the terms and conditions for the proposed reduction in capital, which should not compromise equality among the shareholders, are fair.

We have no matters to report on the terms and conditions of the proposed reduction in capital.

Paris-La Défense, 18 March 2024

The Statutory Auditors
MAZARS

Claire Gueydan-O'Quin

ERNST & YOUNG et Autres

Anne Herbein

5.6 Statutory Auditors' report on the issue of shares and/or other securities with or without a waiver of preferential subscription rights

General Meeting of 17 April 2024

Twenty-second, twenty-third, twenty-fourth and twenty-fifth resolutions

To the General Meeting of Covivio,

In our capacity as your company's Statutory Auditors and in accordance with Articles L. 228-92, L. 225-135 et seq. and L. 22-10-52 of the French Commercial Code, we hereby report to you on the proposals, submitted for your authorisation, for delegation of authority to the Board of Directors to decide on various issues of shares and/or other securities.

On the basis of its report, the Board of Directors proposes:

―

that you authorise it, with power to sub-delegate and for a period of twenty-six months, to decide on the following issues of securities, if necessary waiving your preferential subscription right, and to decide on the final terms and conditions applicable to any such issues of securities:

―	the issue with preferential subscription rights (twenty-second resolution) of ordinary shares and/or securities (including new or existing share subscription warrants), giving access by any means, immediately or in the future, to the equity of your company, issued free of charge or against payment, it being specified that this delegation may allow the issue of securities under the conditions provided for by Article L. 228-93 of the French Commercial Code;
―	the issue, without preferential subscription rights, by means of a public offering, including offerings governed by Article L. 411-2 I of the French Monetary and Financial Code (twenty-third resolution) shares in your company and/or any securities giving access by any means, immediately or in the future, to the share capital of your company, it being specified that this delegation of authority may allow the issue of securities under the conditions provided for by Article L. 228-93 of the French Commercial Code;
―	the issue, in the event of any public exchange offer initiated by your company (twenty-fourth resolution), of shares and/or other securities conferring immediate or deferred access to the company's equity;

―

that you authorise it, with power to sub-delegate and for a period of twenty-six months, to issue shares and/or other securities conferring immediate or deferred access by any means to your company's equity, or to other existing or future equity securities of the company, in consideration for contributions in-kind to the company in the form of shares or other securities conferring access to share capital (twenty-fifth resolution).

The maximum individual nominal amount of capital increases that may be carried out immediately or in the future may not exceed:

―	€75,750,000 in respect of the twenty-second resolution;
―	€30,300,000 in respect of the twenty-third resolution, it being specified that (i) the nominal amount of any increase in the share capital of your company that may be carried out by virtue of this delegation without a priority period having been granted to the shareholders will count towards the cap applicable to capital increases resulting from the issues of shares and/or securities authorised by the twenty-fourth and twenty-fifth resolutions, and (ii) in all other cases, this amount is set independently and separately from the caps on capital increases for the issues of shares and/or securities authorised by the twentieth, twenty-second and twenty-fourth to twenty-seventh resolutions; and
―	10% of the share capital of your company (existing at the date this delegation is used by your Board of Directors), under the twenty-fourth and twenty-fifth resolutions.

The total nominal amount of the debt securities giving access to the equity of your company immediately and/or in the future that may be issued under the twenty-second, twenty-third, twenty-fourth and twenty-fifth resolutions may not exceed €750,000,000, which is the overall cap for all debt securities.

It is the Board of Directors' responsibility to prepare and submit a report in accordance with Articles R. 225-113 et seq. of the French Commercial Code. Our role is to report on the fairness of any financial data extracted from the parent company's financial statements, on the proposal to waive preferential subscription rights and on certain other information related to the issue of securities provided in this report.

We have performed the procedures that we deemed necessary to comply with the professional standards applicable in France to such engagements. Our procedures consisted in verifying the content of the report of the Board of Directors and the bases of determination of the issue prices.

Subject to ulterior examination of the terms and conditions applicable to any issue of securities actually decided on, we have no matters to report with regard to the bases of determination of the issue prices for the equity securities to be issued as described in the report of the Board of Directors with regard to the twenty-third resolution.

As the bases of determination of the issue prices for the equity securities to be issued in the framework of the twenty-second, twenty-fourth and twenty-fifth resolutions have not been established in the report of the Board of Directors, we do not at present express any opinion in their respect.

As the final terms and conditions applicable to any actual issues of securities have not been established, we do not at present express any opinion in their respect nor, therefore, in respect of the proposal of the twenty-third resolution to waive shareholders' preferential subscription rights.

In accordance with Article R. 225-116 of the French Commercial Code, we will prepare an additional report on those matters in the event of any actual use by the Board of Directors of the proposed delegations of authority to issue shares or other equity securities conferring access to the company's share capital or providing rights of allocation of debt securities, to issue other securities providing access to equity securities to be issued subsequently, or to issue of shares without existing shareholders' preferential subscription rights.

Paris-La Défense, 18 March 2024

The Statutory Auditors
MAZARS

Claire Gueydan-O'Quin

ERNST & YOUNG et Autres

Anne Herbein

5.7 Statutory Auditors' report on the issue of shares or other securities reserved for the benefit of subscribers to a corporate savings plan

General Meeting of 17 April 2024

Twenty-seventh resolution

To the General Meeting of Covivio,

In our capacity as your company's Statutory Auditors and in accordance with Articles L. 228-92 and L. 225-135 et seq. of the French Commercial Code, we hereby report to you on the proposal, submitted for your authorisation, for delegation of authority to the Board of Directors to decide on the issue of shares or other securities providing access to the share capital, without preferential subscription rights for existing shareholders, reserved for employees subscribing to a corporate savings plan of your Group or company and/or other related companies as defined in Articles L. 225-180 of the French Commercial Code and L. 3344-1 of the Labour Code. The maximum nominal amount of the capital increase that may result from this issue is €500,000.

The aforementioned proposal is submitted for your authorisation in accordance with Articles L. 225-129-6 of the French Commercial Code and L. 3332-18 et seq. of the French Labour Code.

On the basis of its report, the Board of Directors proposes that you authorise it, with power to further delegate such authority and for a period of twenty-six months, to decide on any such issue of securities and waive your preferential subscription rights to the shares and/or securities to be issued. If necessary, the Board of Directors will determine the final conditions of this operation.

It is the Board of Directors' responsibility to prepare and submit a report in accordance with Articles R. 225-113 et seq. of the French Commercial Code. Our role is to report on the fairness of any financial data extracted from the parent company's financial statements, on the proposal to waive preferential subscription rights and on certain other information related to the issue of securities provided in this report.

We have performed the procedures that we deemed necessary to comply with the professional standards applicable in France to such engagements. Our procedures consisted in verifying the content of the report of the Board of Directors and the bases of determination of the issue prices.

Subject to ulterior examination of the terms and conditions applicable to any issue of securities actually decided on, we have no matters to report with regard to the bases of determination of the issue prices for the equity securities to be issued as described in the report of the Board of Directors.

As the final terms and conditions applicable to any actual issue of securities have not been established, we do not at present express any opinion in their respect nor, therefore, in respect of the proposal to waive preferential subscription rights.

In accordance with Article R. 225-116 of the French Commercial Code, we will prepare an additional report on those matters in the event of any actual use by the Board of Directors of the proposed delegation of authority to issue shares or other equity securities providing access to the company's share capital or to issue other securities providing access to equity securities to be issued subsequently.

Paris-La Défense, 18 March 2024

The Statutory Auditors
MAZARS

Claire Gueydan-O'Quin

ERNST & YOUNG et Autres

Anne Herbein

5.8 Parties responsible for auditing the financial statements

	Statutory Auditors	Date of appointment	Date of renewal	Expiry of term of office
Holders	Cabinet Mazars Tour Exaltis 61, rue Henri-Regnault 92400 Courbevoie	22/05/2000	11/04/2006 25/04/2012 19/04/2018	OGM in 2024 approving the annual financial statements for the year ended 31/12/2023
	ERNST & YOUNG et Autres 1-2, place des Saisons Paris-La Défense 1 92400 Courbevoie	24/04/2013	17/04/2019	OGM in 2025 approving the annual financial statements for the year ended 31/12/2024

The remuneration of the Statutory Auditors is presented in Section 4.2.7.6 of the annex to the consolidated financial statements.

6 Information and management

6.1 Company overview

6.1.1 History of the company (Group Share data)

1963	The company is formed under the name "Société des Garages Souterrains et du centre commercial Esplanade - Belvédère". Its original purpose was to operate the first underground car park built in Metz.
1983	Listing on the secondary market at the Nancy stock exchange on 16 June.
1998	Acquisition of Immobilière Batibail and a set of mainly residential assets. Adoption of "Garages Souterrains et Foncière des Régions, GSFR" as the new corporate name.
1999	Merger between Immobilière Batibail and Gecina. GSFR is brought under the control of the Batipart family holding company chaired by Charles Ruggieri.
2002	Corporate name change: GSFR becomes "Foncière des Régions". Subsidiarisation of the Car Parks business: creation of the company Parcs GFR.
2003	Adoption of the tax status of a Société Immobilière d'Investissement Cotée (SIIC, a public real estate investment company). Acquisition of full ownership of the assets in partnership with Morgan Stanley and leased to EDF or France Télécom (these assets represent 1.15 million m ² valued at €850 million) and acquisition of 133 buildings from the insurer Azur-GMF.
2004	Foncière des Régions launches a friendly takeover bid for Bail Investissement Foncière.
2005	Creation of Foncière Développement Logements and transfer of housing assets to this entity.
2006	Merger through absorption of Bail Investissement Foncière into Foncière des Régions.
2007	Acquisition of 68% of Beni Stabili, the second-largest public real estate company in Italy. Creation of Foncière Europe Logistique, a public entity (SIIC tax status) dedicated to the logistics business, and transfer of assets to this entity.
2008	Included in the SBF 120.
2009	Start of renovation work on the CB 21 Tower.
2010	Changes in shareholder structure and governance: Batipart sells a substantial proportion of its investment in Covivio to Delfin, Predica and Assurances du Crédit Mutuel Vie (ACM Vie). Charles Ruggieri, Chairman of Batipart, resigns as Chairman of the Supervisory Board of Foncière des Régions. Jean Laurent is appointed Director and named Chairman of the Supervisory Board.
2011	Adoption on 31 January 2011 by the General Meeting of Foncière des Régions and the subsequent Board of Directors of a new Governance:
	• adoption of the legal form of a company with a Board of Directors;
	• separation of the functions of Chairman of the Board of Directors and Chief Executive Officer, assigned respectively to Jean Laurent and Christophe Kullmann;
	• strengthening of the representation of independent Directors raised to 40% of the members.
2012	Squeezeout followed by a mandatory delisting by Covivio of FEL. Award of a BBB- rating with a stable outlook by the Standard & Poor's rating agency.
2013	Separation of France and Germany portfolios in the residential business. Expansion of Covivio in Germany:
	• successful public exchange offer on Foncière Développement Logements after which Covivio holds a 59.7% stake in Foncière Développement Logements;
	• €351 million acquisition of housing assets in Germany, in Berlin and Dresden.
2014	Creation of FDM Management, a subsidiary specialising in the acquisition of hotel assets.
2015	Successful capital increase of €255 million. S&P upgrades Covivio's rating to BBB with a stable outlook.
2016	Covivio increases its equity stake in subsidiary Covivio Hotels to 49.9% and its stake in subsidiary Beni Stabili to 52.2%. First Green Bond in the amount of €500 million with a ten-year maturity and interest rate of 1.875%. Acquisition of 18 Hotel Operating properties in Germany, France and Belgium for €936 million, via FDM Management.
2017	Launch of Covivio's new flex-office and co-working offer in three buildings in Paris and Marseille. Pursuit of the strategy in Italy with the splitting of 40% of the Telecom Italia portfolio with Crédit Agricole Assurances and EDF Invest at the end of the first half of 2017. Launch of the German Residential development pipeline, representing €488 million in construction or extension projects, largely in Berlin. Covivio increases its investment in subsidiary Foncière Développement Logements, wholly owned as of 31 December. The company was delisted from the exchange.
2018	Foncière des Régions changes identity and becomes Covivio, thus combining all of its European teams under a common banner. Completion of the cross-border merger of Beni Stabili by Covivio, a key step in simplifying the Group. Appointment of Dominique Ozanne as Deputy CEO of Covivio and Laurie Goudallier as Chief Digital Officer. Pursuit of the strategy in Italy with the sharing of 9% of the Telecom Italia portfolio with Crédit Agricole Assurances and EDF Invest in early 2018, after sharing 40% of the Telecom Italia portfolio in 2017. Improved exposure to the hotel business with the merger absorption of FDM Management by Covivio Hotels. Covivio obtained a BBB positive outlook rating from S&P.
2019	Covivio expresses its Purpose (Raison d'être): Build sustainable relationships and well-being. Appointment of Daniel Frey and Marcus Bartenstein in the management of Covivio in Germany. Delivery by Covivio of 45,700 m ² of offices and 680 hotel rooms in France and Germany. Launch of around 170,000 m ² of new projects essentially in Paris, Milan and Berlin. Financial notation: obtention by Covivio of the BBB+ rating, stable perspective, before S&P, due to the improvement of the operational and financial profile. Non-financial rating: Covivio received the maximum score (A1+) for its Corporate Rating from Vigeo-Eiris and is ranked 1 ^st in its sector. Covivio successfully places a second Green Bond for €500 million with a twelve-year maturity and interest rate of 1.125%.
2020	Impact of the Coronavirus on the Group's activities: good performance in Offices and Residential, hotel activity affected by the crisis. Contribution to the national solidarity effort: mobilisation of Covivio to provide assistance to medical authorities, healthcare workers and small and medium-sized businesses weakened by the crisis. Acquisition of a portfolio of ten office assets in major German cities, through the acquisition of Godewind AG. Acquisition of 8 hotels leased to NH Hotels in the city centres of major European tourist destinations. Success of the disposal plan with €0.9 billion of new agreements signed in 2020. Opening of the 1 ^st Wellio flexible office site in Milan. Non-financial ratings: Covivio ranks among the world leaders with Vigeo Eiris, Sustainalytics, GRESB, MSCI, ISS-ESG. Covivio has successfully placed €500 million in ten-year bonds with a coupon of 1.625%.
2021	Record marketing of 180,700 m ² of offices, mainly in France and Italy. Signing of €901 million in disposal agreements with an average margin of 4% on appraisal values. Delivery of 7 office assets pre-let at 96%. Significant recovery in the Hotels activity. Germany becomes Covivio's leading exposure in terms of portfolio values. Reduction of Loan to Value at 39%, two points less than in 2020. New carbon trajectory aimed at carbon neutrality for scopes 1 and 2 and alignment with the well below 2 °C trajectory for scope 3 including construction, i.e. a 40% reduction in emissions by 2030 (vs 2010), validated by the SBT initiative. For its first year of operation, the Covivio Foundation supported 12 associations and projects helping the populations most exposed to the impacts of the health crisis. Appointment of Tugdual Millet as Chief Executive Officer of Covivio Hotels and appointment of Paul Arkwright as Group Chief Financial Officer.
2022	Good resilience of asset values, stable over the year in a real estate environment heavily impacted by the sharp rise in interest rates. Good operational performance, with the marketing of 134,400 m ² of offices in France, Italy and Germany. Renewal of 138,000 m ² of leases with an average maturity extension of 5 years for an average rent increase of +2%. Delivery of five office assets in France and Italy, 79% pre-let. Strengthening of the quality of the balance sheet with the signature of €485 million in disposal agreements (+2.3% average margin on appraised values) allowing net debt to be reduced by €220 million, thus maintaining the leverage ratio (LTV) at 39.5%. New progress on the ESG strategy with 93% of the portfolio benefiting from environmental certification, i.e. 2 points more than in 2021. Appointment of Jean-Luc Biamonti as Chairman of the Board of Directors following the resignation of Jean Laurent on 21 July 2022 for health reasons.
2023	Strengthening of balance sheet quality, including €720 million in disposals over the year, a reduction in net debt of around €700 million and a doubling of the Group's liquidity, which now stands at €2.4 billion. This made it possible to control the debt-to-equity ratio (LTV) at 40.8% despite a real estate environment impacted by the rise in interest rates, which had the effect of depressing like-for-like values by -10.2%. Strong operational performances, with the marketing of 80,000 m ² of offices in France, Italy and Germany and renewal of 51,000 m ² of leases. Delivery of five office assets in France and Germany, 86% pre-let. Exclusive negotiations with AccorInvest to consolidate the ownership of the operating properties and goodwill. Further progress on the ESG strategy with 95.3% of the portfolio benefiting from environmental certification, a 2 point increase on 2022. Increase in the proportion of debt linked to ESG objectives to 57% from 38% at end-2022

6.1.2 Group organisation chart

6.1.2.1 Simplified legal organisation chart of the Group at 31 December 2023

6.1.2.2 Simplified portfolio of the Group at 31 December 2023

6.2 General information about the issuer and its share capital

6.2.1 General information concerning the issuer

6.2.1.1 Company name (Article 2 of the Articles of Association)

Covivio.

6.2.1.2 Legal form (Article 1 of the Articles of Association)

Covivio was transformed into a société anonyme à Conseil d'Administration (French limited company with a Board of Directors) on 31 January 2011.

6.2.1.3 Registered office (Article 4 of the Articles of Association) and the company's administrative offices

Covivio's registered office is 18, avenue François Mitterrand - 57000 Metz (telephone: +33 (0)3 87 39 55 00).

Its administrative offices are located at 10, rue de Madrid - 75008 Paris (telephone: +33 (0)1 58 97 50 00).

6.2.1.4 Trade and Companies Register

Covivio is registered in the Trade and Companies Register of the Metz Judicial Court under number 364 800 060.

Its APE Code is 6820 B.

The SIRET number of the company is 364 800 060 00287.

6.2.1.5 Branch office

Covivio has a branch in Italy with its registered office in Milan (20123), via Carlo Ottavio Cornaggia 10.

6.2.1.6 Market on which the shares and bonds are listed

The Covivio share is listed in Compartment A of Euronext Paris (FR0000064578 - COV), admitted to the SRD and is included in the composition of the MSCI, SBF120, Euronext IEIF "SIIC France", and CAC Mid100 indexes, in "EPRA" and "GPR 250′′, the reference indexes of the European real estate companies, as well as in ESG FTSE4 Good, CAC SBT 1.5°C, DJSI World and Europe, Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20), Euronext® CDP Environment France EW, Stoxx ESG, Ethibel and Gaïa.

The Covivio bonds issued on 20 May 2016 (Green Bonds), for an amount of €500 million, maturing on 20 May 2026, carry a fixed coupon of 1.875% and are listed on the Euronext regulated market in Paris under ISIN code FR0013170834.

The Covivio bonds issued on 21 June 2017, for an amount of €500 million, maturing on 21 June 2027, carry a fixed coupon of 1.5% and are listed on the Euronext regulated market in Paris under ISIN code FR0013262698. These obligations have been reclassified as Green Bonds in 2022. The nominal amount was increased to €595 million at the end of the issue (TAP) on 23 February 2018 of new bonds equivalent to, and forming a single line with the bonds issued in 2017.

The Covivio bonds issued on 17 September 2019 (Green Bonds), for a nominal amount of €500 million, maturing on 17 September 2031, carry a fixed coupon of 1.125% and are listed on the Euronext regulated market in Paris under ISIN code FR0013447232. The nominal amount was increased to €599 million at the end of the issue (TAP) on 13 June 2023 of new bonds equivalent to, and forming a single line with the bonds issued in 2019.

The Covivio bonds issued on 23 June 2020, for an amount of €500 million, maturing on 23 June 2030, carry a fixed coupon of 1.625% and are listed on the Euronext regulated market in Paris under ISIN code FR0013519279. These obligations have been reclassified as Green Bonds in 2022. The nominal amount was increased to €599 million at the end of the issue (TAP) on 28 July 2023 of new bonds equivalent to, and forming a single line with the bonds issued in 2020.

Covivio bonds issued on 20 January 2021 (Green private placement as part of the EMTN [Euro medium term note] programme) for a nominal amount of €100 million, maturing on 20 January 2033, offer a fixed coupon of 0.875% and listed on the regulated market of Euronext in Paris under ISIN code FR0014001LV5.

The Covivio bonds issued on 5 December 2023 (Green Bonds), for a nominal amount of €500 million, maturing on 5 June 2032, carry a fixed coupon of 4.625% and are listed on the Euronext regulated market in Paris under ISIN code FR001400MDV4.

In application of the law at the conclusion of the merger absorption of its subsidiary Beni Stabili and in application of the provisions of Article L. 228-101 of the French Commercial Code, Covivio now assumes all obligations related to the following securities previously issued by Beni Stabili:

―	the bonds issued on 17 October 2017 in the nominal amount of €300 million, maturing on 17 October 2024, carry a fixed coupon of 1.625% and are listed on the Luxembourg stock exchange under ISIN code XS1698714000. These obligations have been reclassified as Green Bonds in 2022;
―	the bonds issued on 20 February 2018 in the nominal amount of €300 million, maturing on 20 February 2028, carry a fixed coupon of 2.375% and are listed on the Luxembourg stock exchange under ISIN code XS1772457633. These obligations have been reclassified as Green Bonds in 2022.

6.2.1.7 LEI (Legal Entity Identifier)

The LEI of Covivio is 969500P8M3W2XX376054.

6.2.1.8 Nationality

The company is governed by French law.

6.2.1.9 Term of the company (Article 5 of the Articles of Association)

The company was created on 2 December 1963 for a period of 99 years.

6.2.1.10 Corporate purpose (Article 3 of the Articles of Association)

Covivio's purpose, both in France and abroad, on its own behalf or in partnership with third parties:

―

primarily:

―	the acquisition of any land, real estate rights or assets, through purchase, exchange, contribution in kind or else including through construction leases, emphyteutic leases, authorisations for temporary occupancy of public property and finance leases, as well as all assets and rights that may be accessory or attached to the said real estate properties,
―	the construction of assets, and any transactions directly or indirectly related to the construction of such assets,
―	the operation and creation of value of such real estate assets through rental,
―	directly or indirectly, the holding of equity investments in entities stipulated in Article 8 and paragraphs 1, 2 and 3 of Article 206 of the French General Tax Code and, in general, the acquisition of shareholdings through contribution, subscription, purchase or exchange of shares or voting rights or else in companies whose primary purpose is the operation of rental real estate portfolio, and the promotion, management and assistance of such entities and companies;

―

secondarily and directly or indirectly:

―	the leasing of all real estate properties,
―	the acquisition, including through concession, of temporary authorisation to occupy public property and the operation of parking facilities,
―	the management, administration, negotiation and sale of real estate rights and assets for the account of third parties and of direct and indirect subsidiaries, allocated to the exploitation of industrial and commercial companies in the rental subsector of the tertiary sector (offices, businesses and logistic) and secondarily in the housing sector,
―	the provision and marketing of new collaborative and intelligent workspaces, or more generally workspaces, open and/or closed office spaces, lounges, meeting rooms or conference rooms, furnished or equipped business centres, archiving premises and car parks,
―	the acquisition, holding, disposal and business management in the tourism, leisure and accommodation sector in the broad sense,
―	the promotion, management and assistance of all direct and indirect subsidiaries;

―

in exceptional circumstances, the transfer, through disposal, contribution, exchange or merger, of the assets of the company;

―

and more generally:

―	the participation as borrower and lender in any intra-group loan or cash transactions and the possibility of granting for this purpose any personal guarantees or security interests in real or personal property, whether mortgages or other borrowings,
―	and all civil, financial, commercial, industrial, personal and real property transactions deemed useful for the development of any one of the aforementioned purposes of the company.

6.2.1.11 Tax regime

The company opted with effect from 1 January 2003 for the tax regime of listed real estate investment companies (SIIC) provided for in Article 208 C of the French General Tax Code. As such, it benefits from an exemption from rental income, real estate capital gains and dividends from SIIC subsidiaries, provided that it distributes to shareholders at least 95% of the rental income, 70% of the capital gains and 100% of dividends.

6.2.1.12 Website

Information about the company is available on its website: www.covivio.eu. The information on the website is not part of the Universal Registration Document unless some of the information is expressly incorporated by reference.

6.2.1.13 Documents available to the public

The shareholders have several media and tools to keep informed about the company and the shares: the website www.covivio.eu, the financial publications in the press, the letter to the shareholders, a dedicated e-mail address (actionnaires@covivio.fr), a dedicated toll-free line (+33 (0) 805 400 865) and the annual report.

This Universal Registration Document, published in French and English, is available free of charge upon request at the company's Administrative Offices, through the Investor Relations department and on the website of the French Financial Markets Authority (Autorité des Marchés Financiers - AMF) (www.amf-france.org).

During the period of validity of this Universal Registration Document, the company's Articles of Association, corporate documents and all reports, evaluations or declarations drawn up by an expert at the request of the company, part of which is included or referred to in the Universal Registration Document are available if applicable on its website and at the company's registered office.

6.2.1.14 Fiscal year (Article 24 of the Articles of Association)

Each fiscal year lasts for 12 months, beginning on 1 January and ending on 31 December of each calendar year.

6.2.1.15 Statutory distribution of profits (Article 25 of the Articles of Association)

―	At least five per cent (5%) of the profits for the year less any prior losses, must be withdrawn and allocated to the legal reserve fund. This deduction ceases to be required when the reserve amounts to one tenth (1/10) of the share capital.

Distributable earnings consist of the profit for the year, minus prior year losses and sums to be allocated in the reserve as required by law and the Articles of Association, plus any retained earnings.

The General Meeting may take from this profit any sums it deems appropriate to be allocated to optional, ordinary or extraordinary reserves, or to be carried forward.

Any balance left over is distributed by the General Meeting among the shareholders in proportion with the number of shares they hold.

In addition, the General Meeting may decide to distribute sums taken from the reserves at its disposal, expressly indicating the reserve items from which the sums are to be withdrawn. However, dividends are taken primarily from the profit for the year.

Except in case of a reduction in capital, no distribution may be made to shareholders when the shareholders' equity is, or would become following such a distribution, less than the amount of the capital plus the reserves that may not be distributed by law or the Articles of Association. The revaluation reserve may not be distributed. It may be capitalised in whole or in part.

After approval of the financial statements by the Ordinary General Meeting, any losses are carried forward and are offset against earnings of subsequent years until extinction.

The Board of Directors may decide to distribute advanced dividend payments prior to the approval of the financial statements for the fiscal year, under the conditions provided for by law.

―

The terms for payment of dividends approved by the General Meeting are decided by the General Meeting or by the Board of Directors. However, the payment of dividends must take place within a maximum period of nine (9) months after the end of the fiscal year. An extension of this time period may be granted by court decision.

The General Meeting may offer shareholders an option between payment in cash or payment in new shares of company shares for all or a portion of the dividend or advanced dividend payments distributed, under the conditions established by law.

The Ordinary General Meeting may approve the distribution of profits or reserves through the distribution of negotiable securities owned by the company; shareholders will be responsible for grouping themselves, if necessary, to obtain a whole number of securities thus distributed.

―	Any Concerned Shareholder whose own situation or that of its partners renders:

(i) the company liable for the withholding (the "Withholding Tax") mentioned in Article 208 C II ter of the French General Tax Code; or

(ii) the SOCIMI companies, whose capital is directly or indirectly held by the company, liable for Spanish withholding (the "Spanish Withholding Tax") mentioned in Article 9.3 of law 11/2009.

A "Shareholder subject to Withholding" will be required to compensate the company for the Withholding Tax and/or the Spanish Withholding Tax due following a distribution, by the company or the SOCIMIs, whose capital is directly or indirectly held by the company, of dividends, reserves, premiums or "income deemed distributed" pursuant to the French General Tax Code or the Spanish law 27/2014 of 27 November 2014 on corporate income tax, respectively, under the conditions of Article 9.3 below.

Any Concerned Shareholder is assumed to be a Shareholder subject to Withholding. If they declare that they are not a Shareholder subject to Withholding, they must provide to the company at its request:

(i) for the needs of the Withholding Tax, no later than five (5) business days prior to the payment of the distributions, a satisfactory legal opinion without reservations, issued by an international law firm with recognised expertise in French tax law or of the country of residence of the Concerned Shareholder, certifying that they are not a Shareholder subject to Withholding, that they are the effective beneficiary of the dividends and that the distributions paid to them do not make the company liable for the Withholding Tax;

(ii) for the needs of the Spanish Withholding Tax, no later than five (5) business days prior to the payment of the distributions by the SOCIMIs whose capital is held directly or indirectly by the company, a certificate of tax residency issued by the competent authority of the country where the Concerned Shareholder declares themselves to be tax resident and, no later than five (5) business days prior to the payment of the distributions, a satisfactory legal opinion without reservations certifying that they are not a Shareholder subject to Withholding in Spain and that the distributions paid to them by the SOCIMIs, whose capital is directly or indirectly held by the company, are not subject to the Spanish Withholding Tax, due to their investment in the company.

In the event in which (a) the company holds, directly or indirectly, a percentage of the rights to dividends at least equal to that mentioned in Article 208 C II ter of the French General Tax Code or greater in one or more listed real estate investment companies mentioned in Article 208 C of the French General Tax Code (a "Daughter SIIC"); or (b) the company holds, directly or indirectly, a percentage of the share capital or rights to dividends at least equal to that mentioned in Article 9.3 of the Spanish law 11/2009 in one or more SOCIMI companies and, in which the Daughter SIIC or the said SOCIMI, due to the situation of the Shareholder subject to Withholding, would have paid the Withholding Tax or the Spanish Withholding Tax, the Shareholder subject to Withholding must, as the case may be, compensate the company, either for the amount paid as compensation by the company to the Daughter SIIC or to the concerned SOCIMI for payment of the Withholding Tax by the Daughter SIIC or the Spanish Withholding Tax by the SOCIMI, or when the company does not compensate the Daughter SIIC or the SOCIMI in an amount equal to the Withholding Tax paid by the Daughter SIIC or equal to the Spanish Withholding Tax paid by the SOCIMI concerned, such that the other shareholders of the company do not economically support any portion of the Withholding Tax or of the Spanish Withholding Tax paid respectively by any one of the SIIC or SOCIMI in the chain of investments owing to the Shareholder subject to Withholding (the "Additional Compensation"). The amount of the Additional Compensation will be paid by each of the Shareholders subject to Withholding proportionately to their respective dividend rights divided by the total dividend rights of the Shareholders subject to Withholding.

The company will be entitled to offset its claim against any Shareholder subject to Withholding, on the one hand, and the sums to be paid by the company for its benefit, on the other hand. Thus, the sums distributed by the company that must, for each share held by said Shareholder subject to Withholding, be paid in its favour pursuant to the aforementioned distribution decision or a share buyback, will be reduced by the amount of the Levy or Spanish Levy owed by the company or SOCIMIs in respect of the distribution of these sums and/or the Additional Compensation.

The amount of any compensation owed by a Shareholder subject to Withholding will be calculated in such a manner that, after payment thereof and taking into account any specific tax regime that may be applicable to it, the company will be placed in the same situation as if the Withholding Tax or the Spanish Withholding Tax had not become due. In particular, the compensation must include any tax due by the company for the compensation.

The company and the Concerned Shareholders will cooperate in good faith to ensure that all reasonable measures are taken to limit the amount of the Withholding Tax or Spanish Withholding Tax due or to become due and the compensation arising or that could arise from it.

―

In the event that (i) following a distribution of dividends, reserves or premiums, or of "products deemed distributed" in the meaning of the French General Tax Code by the company or by a Daughter SIIC exempt from corporate tax in application of Article 208 C II of the French General Tax Code or following a distribution by a SOCIMI, whose capital is held directly or indirectly by the company, within the meaning of the Spanish law 27/2014 of 27 November 2014 on corporate taxation, it is discovered that a shareholder was a Shareholder subject to Withholding on the date of the payment of the said sums; and that (ii) the company, the Daughter SIIC and/or the said SOCIMI ought to have paid the Withholding Tax or the Spanish Withholding Tax of the amounts thus paid, and the sums had already been subject to the compensation specified in Article 25.3 above, the Shareholder subject to Withholding must pay to the company, as compensation for the damages suffered by this latter, an amount: (a) equal to the Withholding Tax that would have been paid by the company for each share of the company that it held on the day of payment of the concerned distribution of dividends, reserves or premiums, (b) equal to any damages suffered by the company resulting from the payment of the Spanish Withholding Tax by the SOCIMIs, whose capital is directly or indirectly held by the company as this payment is attributable to the Concerned Shareholder, and (c) as the case may be, the amount of the Additional Compensation (the "Compensation").

Where relevant, the company will be entitled to make an offset, in the appropriate amount, between its receivables under the indemnity and any sums that may subsequently become due to this Shareholder subject to Withholding, without prejudice, as appropriate, to the prior allocation to the said sums of the offset as provided for in paragraph 4 of Article 25.3 above. In the event that, after such an offset is made, the company has still not been paid the amounts owed by Shareholder subject to Withholding under the indemnity, the company will be entitled to make a new offset, in the appropriate amount, against any sums that may subsequently be payable to this Shareholder subject to Withholding until the final extinguishment of the said debt.

6.2.1.16 General Meetings (Article 22 of the Articles of Association)

General Meetings are called under the conditions set by the laws and regulations in force.

Meetings are to be held at the registered office or at any other location indicated in the notice of meeting.

Every shareholder has the right to attend General Meetings and to participate in the deliberations, in person or by proxy, upon presentation, under the applicable legal and regulatory conditions, of his or her identity and of the registration of the shares in the books in the name of the shareholder or of an intermediary registered on his or her behalf.

The General Meetings are chaired by the Chairman of the Board of Directors or, failing this, by a Vice-Chairman or, in the absence of the latter, by a Director specially appointed for this purpose by the Board. Failing this, the General Meeting elects the Chairman of the meeting.

The two (2) shareholders attending the General Meeting with the highest number of votes are elected scrutineers if they so accept.

The Executive Board (bureau) will appoint the Secretary, who may be chosen from outside the shareholders.

At each General Meeting, an attendance sheet must be compiled under the conditions provided by law.

Copies or excerpts of the minutes of the General Meetings will be validly certified by the Chairman of the Board of Directors, a member of the Board or the Secretary of the General Meeting.

Ordinary and Extraordinary General Meetings, deliberating under the quorum and majority conditions set forth in the respective provisions governing them, will exercise the powers attributed to them by law.

Shareholders may vote by post, appoint a proxy or send their proxy form by any means permitted under the laws and regulations in force. In particular, shareholders may send the company proxy or postal voting forms by fax or e-mail before the General Meeting, under the conditions set by law. The proxy and postal vote forms may be signed electronically if the electronic signature satisfies the requirements defined in the first sentence of paragraph 2 of Article 1316-4 of the French Civil Code.

On the decision of the Board of Directors, the shareholders may take part in the General Meeting by videoconference or vote by any remote means of communication and teletransmission, including the internet, under the conditions set forth in the regulations applicable at the time the communication method is used. This decision must be included in the meeting notice published in the Bulletin des Annonces Légales Obligatoires (BALO).

Shareholders will be considered as being present for quorum and majority calculations if they participate in the General Meeting by videoconference or by any remote means of communication and teletransmission, including the internet, which enables shareholders to be identified under the conditions provided for by laws and regulations.

6.2.1.17 Statutory threshold crossing (Article 8 of the Articles of Association)

―

In addition to the legal obligation to notify the company of the holding of certain fractions of the equity and to make any resultant declarations of intent, any physical person or legal entity, acting alone or in concert, who has come to hold or stops holding, directly or indirectly, at least one per cent (1%) of the company's capital or voting rights, or any multiple of this percentage, must notify the company, by registered post with proof of receipt request to the registered office within the period provided for in Article R. 233-1 of the French Commercial Code, also indicating the number of securities ultimately giving access to the share capital it holds, the number of related voting rights as well as all the information referred to in Article L. 233-7 I of the French Commercial Code. Mutual fund management firms must carry out such reporting for the entirety of the shares of the company held by the funds that they manage.

This reporting obligation applies to all cases of exceeded thresholds mentioned above, including beyond the statutory and regulatory thresholds. Unless a declaration has been made under the conditions outlined above, shares above the fraction which should have been declared will have no voting rights attached for any General Meeting held within two (2) years after the date of regularisation of the declaration, at the request, recorded in the minutes of the General Meeting, of one or several shareholders together holding at least one per cent (1%) of the share capital.

(i) Any shareholder other than a physical person that holds, directly or by intermediary of entities that they control in the meaning of Article L. 233-3 of the French Commercial Code, a percentage of rights to dividends of the company at least equal to that mentioned in Article 208 C II ter of the French General Tax Code; and

(ii) Any shareholder who indirectly holds, by intermediary of the company, a percentage of the share capital or rights to dividends of real estate investment sociétés anonymes (public limited companies) listed on the stock exchange in Spain ("SOCIMIs") at least equal to that mentioned in Article 9.3 of Spanish law 11/2009 of 26 October 2009 ("law 11/2009")

(collectively, a "Concerned Shareholder") shall be required to register the entirety of registered shares in the company which they own and ensure that the entities that they control within the meaning of Article L. 233-3 of the French Commercial Code register all registered shares in the company of which they hold ownership.

Any Concerned Shareholder that has not met these obligations by the second working day prior to a General Meeting will have the voting rights it holds, either directly or via entities it controls pursuant to Article L. 233-3 of the French Commercial Code, capped at the number of shares that it holds, at the relevant General Meeting, in registered form at this date. The Concerned Shareholder referred to above will regain all of the voting rights attached to the shares they hold, directly or by intermediary of entities it controls pursuant to Article L. 233-3 of the French Commercial Code, at the next following General Meeting, provided that they make their situation compliant by registering all the shares they hold, directly or via entities they control pursuant to Article L. 233-3 of the French Commercial Code, in registered form, by the second working day prior to that General Meeting.

―

In order to determine the thresholds for capital and voting rights whose crossing is to be declared under the present Article 8, the assimilation cases and calculation methods stipulated in Articles L. 233-7 and L. 233-9 of the French Commercial Code and the provisions of Articles 223-11 et seq. of the General Regulations of the French Financial Markets Authority are applied.

6.2.2 General information concerning the share capital

6.2.2.1 Form of shares - Identification of holders (Article 7 of the Articles of Association)

―	Shares will be registered or bearer shares, at the shareholder's choice.
―	Shares will be registered in the account of their owner under the conditions and the terms provided for by the legal provisions in force.
―	The company, or a third party designated by it, may use the provisions outlined in Articles L. 228-2 et seq. of the French Commercial Code at any time to identify (i) holders of securities conferring immediately or in the future voting rights in its own General Meetings (of shareholders) and (ii) holders of bonds or commercial paper issued by the company.

6.2.2.2 Transfer of shares (Article 9 of the Articles of Association)

The shares are freely negotiable.

6.2.2.3 Duties and obligations attached to shares (Article 10 of the Articles of Association)

Each share gives the right to ownership of the corporate assets and a share of the profits and the proceeds of liquidation in proportion to the number of existing shares.

Shareholders are only responsible for company debts up to the limit of their contribution, i.e. the par value of their shares.

Each shareholder will have the same number of votes as the number of shares owned or represented. No double voting rights are granted pursuant to Article L. 22-10-46 of the French Commercial Code.

Ownership of one share legally implies compliance with the Articles of Association and decisions of the General Meetings.

Whenever it is necessary to hold several shares to exercise any right, in the event of exchange, reverse split or share allotments, or in the event of a capital increase or reduction, merger or other corporate transactions, the owners of only one share or a number of shares less than the number required may exercise these rights only if they personally ensure the grouping or purchase or sale of the necessary number of shares or allotment rights.

Shares are indivisible with respect to the company, which recognises only one owner for each share. Joint owners are required to be represented in relation to the company by one person only. The voting right attached to a share belongs to the beneficial owner for Ordinary General Meetings and to the bare owner for Extraordinary General Meetings.

6.2.2.4 Conditions for modification of the share capital

The company's Articles of Association do not provide any rules in order to change the share capital. These decisions are subject to the legal and regulatory provisions that allow the Extraordinary General Meeting to delegate to the Board of Directors, which may sub-delegate, the powers or authority necessary to modify the company's share capital and the number of shares, particularly in the event of a capital increase or reduction.

You will be asked in an Extraordinary General Meeting to delegate certain financial authority to the Board of Directors in terms of capital increases and decreases by the cancellation of shares acquired in share buyback programmes. The financial delegations are presented in the report of the Board of Directors in the text of the draft resolutions in Section 5.2.2.1.

6.3 Shareholders

Covivio includes among its important shareholders the Delfin, Crédit Agricole Assurances, Covéa and Assurances du Crédit Mutuel groups.

6.3.1 Information on the share capital

As at 1 January 2023, Covivio's fully subscribed share capital was €284,358,288 divided into 94,786,096 fully paid-up shares, each with a par value of €3 and all of the same class.

At the end of the fiscal year, and taking into account the capital increase completed on 1 June 2023, Covivio's share capital was €303,019,167 divided into 101,006,389 fully paid-up shares, each with a par value of €3 and all of the same class.

6.3.2 Securities giving access to the share capital

With the exception of the free shares presented below, there are no other securities giving access to the company's share capital.

Free shares

The number of shares that may be issued under free share grants implemented by the company stood at 596,894 at the end of the fiscal year.

In accordance with the decisions of the Chief Executive Officer taken by delegation of the Board of Directors, and subject to the meeting of the presence condition and any performance conditions to which certain beneficiaries are subject, the definitive allocation of these shares will be made from treasury shares held by the company.

Information on the allocation of free shares is provided in Section 6.3.9.2 below of this chapter.

6.3.3 Share capital structure and voting rights

In accordance with the provisions of Article 10 of the Articles of Association amended by the General Meeting of 17 April 2015, each shareholder will continue to have the same number of votes as he or she has shares. No double voting rights are granted pursuant to Article L. 22-10-46 of the French Commercial Code. Nevertheless, the number of voting rights exercisable in a General Meeting is adjusted to take account of treasury shares, which do not bear voting rights.

To the best of the company's knowledge, the distribution of the share capital and voting rights over the last three fiscal years among the shareholders or groups of shareholders who own or are likely to own, taking into account the shares and voting rights subject to the same treatment under Article L. 233-9 of the French Commercial Code, 5% or more of the share capital or voting rights, is as follows:

	31/12/2023				31/12/2022
	Number of shares	% of the share capital	% of theoretical voting rights ⁽¹⁾	% of voting rights exercisable in GM ⁽²⁾	Number of shares	% of the share capital
Public	41,325,372	40.92	40.92	41.27	38,897,127	41.04
Delfin Group ⁽³⁾	27,918,616	27.64	27.64	27.87	25,765,290	27.18
Groupe Crédit Agricole Assurances	8,343,810	8.26	8.26	8.33	7,750,975	8.18
Assurances du Crédit Mutuel	8,165,592	8.08	8.08	8.15	8,114,538	8.56
Covéa Group	7,365,314	7.29	7.29	7.35	6,797,240	7.17
BlackRock Inc.	7,043,176	6.97	6.97	7.03	6,499,857	6.86
Treasury share	844,509	0.84	0.84	/	961,069	1.01
Total	101,006,389	100%	100%	100%	94,786,096	100%

	31/12/2022		31/12/2021
	% of theoretical voting rights ⁽¹⁾	% of voting rights exercisable in GM ⁽²⁾	Number of shares	% of the share capital	% of theoretical voting rights ⁽¹⁾	% of voting rights exercisable in GM ⁽²⁾
Public	41.04	41.46	39,197,424	41.42	41.42	41.57
Delfin Group ⁽³⁾	27.18	27.46	25,765,290	27.22	27.22	27.32
Groupe Crédit Agricole Assurances	8.18	8.26	7,750,975	8.19	8.19	8.22
Assurances du Crédit Mutuel	8.56	8.65	8,114,538	8.57	8.57	8.61
Covéa Group	7.17	7.24	6,797,240	7.18	7.18	7.21
BlackRock Inc.	6.86	6.93	6,662,926	7.04	7.04	7.07
Treasury share	1.01	/	360,298	0.38	0.38	/
Total	100%	100%	94,648,691	100%	100%	100%

⁽¹⁾ These percentages are calculated on the basis of all shares with voting rights attached, including shares temporarily without voting rights.

⁽²⁾ These percentages are calculated by excluding shares held by the company that do not have voting rights.

⁽³⁾ Delfin S.à.r.l. is a holding company that belongs to the Del Vecchio family. Delfin S.à.r.l. is primarily involved in financial business and equity investments and controls Aterno and DFR Investment, Covivio shareholders.

To the company's knowledge:

―	there has been no significant change in the share capital structure and voting rights since the end of the fiscal year;
―	there are no other shareholders owning, directly or indirectly, alone or in concert, more than 5% of the capital or voting rights;
―	there are no shareholder agreements involving at least 0.5% of the capital or voting rights in the company, nor any concerted actions.

The company is neither directly nor indirectly controlled pursuant to Article L. 233-3 of the French Commercial Code.

As at 31 December 2023, Covivio directly held, outside the terms of the liquidity agreement (103,501), 741,008 treasury shares. A description of the share buyback programmes implemented during the fiscal year is provided in Section 6.3.8.

There is no cross-shareholding. Covivio has no direct or indirect capital interest in any company which, in turn, has a controlling interest in Covivio.

Using the services of Euroclear, the company has identified the holders of shares that entitles to voting rights, either immediately or in the future, in its own General Meetings. The findings identified some 17,300 individuals and 1,755 financial institutions as shareholders of the company.

Subsequent to the end of the financial year, on 21 February 2024, the company signed a agreement under which General made a contribution in kind of 8.31% of Covivio Hotels equity in exchange for Covivio shares at an exchange ratio of 31 Covivio shares for 100 Covivio Hotels shares.

6.3.4 Threshold crossing disclosures

During the 2023 fiscal year, the company was informed of the following legal and/or statutory threshold crossings:

Shareholder	Date of threshold crossing	Upward threshold crossing		Downward threshold crossing		Shares
Legal	Statutory	Legal	Statutory
BlackRock Inc.	14 February 2023	/	7%	/	/	6,737,431
BlackRock Inc.	22 February 2023	/	/	/	7%	6,547,630
Amundi	3 March 2023	/	1%	/	/	1,781,756
BlackRock Inc.	7 March 2023	/	77%	/	/	6,639,126
BlackRock Inc.	8 March 2023	/	/	/	7%	6,632,296
BlackRock Inc.	14 March 2023	/	7%	/	/	6,665,272
BlackRock Inc.	15 March 2023	/	/	/	7%	6,615,380
BlackRock Inc.	17 March 2023	/	7%	/	/	6,988,944
Zürcher Kantonalbank ⁽¹⁾	20 April 2023	/	1%	/	/	991,160
Bank of Montreal	20 April 2023	/	1%	/	/	1,273,507
Zürcher Kantonalbank ⁽¹⁾	21 April 2023	/	/	/	1%	705,828
BNP Paribas Asset Management Holding ⁽²⁾	31 May 2023	/	/	/	1%	809,578
Cohen & Steers Inc.	30 June 2023	/	/	/	1%	940,732
DFR Investment S.à.r.l	1 June 2023	/	12%	/	/	12,183,224
BlackRock Inc.	5 July 2023	/	/	/	7%	6,994,274
Zürcher Kantonalbank ⁽¹⁾	6 July 2023	/	1%	/	/	1,044,634
Zürcher Kantonalbank ⁽¹⁾	4 August 2023	/	/	/	1%	937,431
Zürcher Kantonalbank ⁽¹⁾	28 August 2023	/	1%	/	/	1,016,456
Zürcher Kantonalbank ⁽¹⁾	15 September 2023	/	/	/	1%	948,509
Zürcher Kantonalbank ⁽¹⁾	30 October 2023	/	1%	/	/	1,010,434
Zürcher Kantonalbank ⁽¹⁾	15 November 2023	/	/	/	1%	973,310
Amundi	29 November 2023	/	/	/	1%	1,003,866
BNP Paribas Asset Management Holding ⁽²⁾	30 November 2023	/	1%	/	/	1,089,612

Shareholder	Voting rights	% of the share capital	% of the voting rights
Legal
BlackRock Inc.	6,737,431	7.11	7.11
BlackRock Inc.	6,547,630	6.91	6.91
Amundi	1,781,756	1.87	1.87
BlackRock Inc.	6,639,126	7.00	7.00
BlackRock Inc.	6,632,296	6.99	6.99
BlackRock Inc.	6,665,272	7.03	7.03
BlackRock Inc.	6,615,380	6.98	6.98
BlackRock Inc.	6,988,944	7.37	7.37
Zürcher Kantonalbank ⁽¹⁾	991,160	1.046	1.046
Bank of Montreal	1,273,507	1.343	1.343
Zürcher Kantonalbank ⁽¹⁾	705,828	0.745	0.752
BNP Paribas Asset Management Holding ⁽²⁾	809,392	0.8541	0.8539
Cohen & Steers Inc.	548,493	0.93	0.54
DFR Investment S.à.r.l	12,183,224	12.06	12.06
BlackRock Inc.	6,994,274	6.92	6.92
Zürcher Kantonalbank ⁽¹⁾	1,044,634	1.034	1.044
Zürcher Kantonalbank ⁽¹⁾	937,431	0.928	0.937
Zürcher Kantonalbank ⁽¹⁾	1,016,456	1.006	1.016
Zürcher Kantonalbank ⁽¹⁾	948,509	0.939	0.948
Zürcher Kantonalbank ⁽¹⁾	1,010,434	1.000	1.010
Zürcher Kantonalbank ⁽¹⁾	973,310	0.964	0.973
Amundi	1,003,866	0.99	0.99
BNP Paribas Asset Management Holding ⁽²⁾	1,089,453	1.0788	1.0786

⁽¹⁾ Single declaration on behalf of Zürcher Kantonalbank, Swisscanto Fondsleitung AG and Swisscanto Asset Management International SA.

⁽²⁾ Single declaration on behalf of the entities it controls within the meaning of Article 233-3 of the French Commercial Code and whose UCITS or mandates delegate to them the exercise of voting rights, with the exception of BNPP AM Argentina, TEB Asset Management and BNPP AM India.

After the end of the fiscal year, the company was informed of the following legal and/or statutory threshold crossings:

		Upward threshold crossing		Downward threshold crossing
Shareholder	Date of threshold crossing	Legal	Articles of Association	Legal	Articles of Association	Shares
Amundi	30 January 2024	/	1%	/	/	1,024,611
Amundi	5 February 2024	/	/	/	1%	975,946

Shareholder	Voting rights	% of the share capital	% of the voting rights
Amundi	1,024,611	1.01	1.01
Amundi	975,946	0.96	0.96

6.3.5 Declarations of intent

No declaration of intent was made during the 2023 fiscal year.

6.3.6 Change in the capital over the last five fiscal years

The company's share capital has evolved as follows over the last five fiscal years:

	31 December 2019	31 December 2020	31 December 2021	31 December 2022	31 December 2023
Share capital	€261,659,718	€283,632,696	€283,946,073	€284,358,288	€303,019,167
Number of shares	87,219,906	94,544,232	94,648,691	94,786,096	101,006,389

The changes in the company's share capital arise from the transactions described below:

Date	By type	Number of shares issued	Share premium amount (in €)	Number of shares	Capital amount (in €)
7 February 2019	Capital increase resulting from the exercise of the right to allocate shares under ORNANE 2013	3,637	310,349.57	82,906,535	248,719,605
19 February 2019	Final allocation of free shares	8,500	/	82,915,035	248,745,105
27 February 2019	Final allocation of free shares	31,491	/	82,946,526	248,839,578
	Capital increase resulting from the exercise of the right to allocate shares under ORNANE 2013	381	32,629.33	82,946,907	248,840,721
29 March 2019	Capital increase resulting from the exercise of the right to allocate shares under ORNANE 2013	294,035	25,947,858.94	83,240,942	249,722,826
29 April 2019	Final allocation of free shares	15,000	/	83,255,942	249,767,826
3 June 2019	Payment of the dividend in shares	3,885,719	304,212,940.51	87,141,661	261,424,983
22 November 2019	Final allocation of free shares	27,900	/	87,169,561	261,508,683
25 November 2019	Final allocation of free shares	50,345	/	87,219,906	261,659,718
17 February 2020	Final allocation of free shares	37,923	/	87,257,829	261,773,487
24 April 2020	Final allocation of free shares	45,000	/	87,302,829	261,908,487
20 May 2020	Payment of the dividend in shares	7,185,223	321,897,990.40	94,488,052	283,464,156
20 November 2020	Final allocation of free shares	56,180	/	94,544,232	283,632,696
12 February 2021	Final allocation of free shares	10,523	/	94,554,755	283,664,265
17 February 2021	Final allocation of free shares	24,726	/	94,579,481	283,738,443
19 November 2021	Final allocation of free shares	69,210	/	94,648,691	283,946,073
11 February 2022	Final allocation of free shares	51,052	/	94,699,743	284,099,229
18 February 2022	Final allocation of free shares	25,123	/	94,724,866	284,174,598
18 November 2022	Final allocation of free shares	60,830	/	94,785,696	284,357,088
9 December 2022	Final allocation of free shares	400	/	94,786,096	284,358,288
1 June 2023	Payment of the dividend in shares	6,220,293	260,443,667.91	101,006,389	303,019,167

6.3.7 Employee shareholding

In accordance with the provisions of Article L. 225-102 of the French Commercial Code, you will find hereafter a report on employee shareholding in the company's share capital as at the last day of the 2023 fiscal year, representing 667,901 Covivio shares, i.e. 0.66% of the capital.

6.3.8 Information about the share buyback programme

In 2023, Covivio acquired and sold its own shares as part of its share buyback programmes under the authorisation granted by the General Meeting of 21 April 2022, then that granted by the General Meeting of 20 April 2023.

This share buyback programme, which cannot be implemented during a public offer period, has the following characteristics and terms:

―

the maximum purchase price is €135 per share (excluding acquisition expenses);

―

the maximum amount of funds allocated to the buyback programme would be €500 million;

―

the purchase, sale, exchange or transfer transactions may be executed by any means, whether on the market or over the counter, including block purchases or sales, or by using financial instruments, with the following primary aims:

―	the implementation of a liquidity agreement with an investment service provider under the conditions and according to the methods set by the regulations in place and recognised market practices,
―	grants to employees and corporate officers of the company and/or companies in its group,
―	the delivery of shares upon the exercise of rights attached to securities giving entitlement to the allocation of shares,
―	the holding and delivery of shares as payment or in exchange under potential external growth transactions, mergers, spin-offs or contributions,
―	the cancellation of shares,
―	the use of shares in any other practice that may come to be recognised by law or by the French Financial Markets Authority (Autorité des Marchés Financiers) or any other purpose that would provide a basis for the presumption of legitimacy.

The last authorisation brought an end to the previous share buyback programme, which amounted to 947,184 treasury shares held by the company at 20 April 2023, of which:

―	99,722 shares resulting from the liquidity agreement entered into with Exane ⁽¹⁾ , and updated on 1 July 2021 following AMF decision No. 2021-01 of 22 June 2021 renewing the introduction of liquidity agreements on equity securities in line with accepted market practice;
―	847,462 shares allocated to the employee shareholding plan coverage within (i) the allocation of free shares to the company for the benefit of employees and/or corporate officers of Covivio and/or companies in its group (ii) the investment of the profit sharing and incentive (increased by the subsequent contribution of the company) in shares of the company by the employees of the Covivio ESU.

The new share buyback programme was implemented by a decision of the Board of Directors on 19 April 2023, subject to the condition precedent of approval by the Combined General Meeting of 20 April 2023 in the 21 ^st resolution relating to the programme, it being specified that the Chief Executive Officer enacted, by decisions on 20 April 2023, the lifting of the condition precedent and confirmed, as necessary, the implementation of the company's share buyback programme according to the terms and conditions set by the Board of Directors.

The conditions for implementing this share buyback programme were set out in a document describing the share buyback programme posted on the company's website on 20 April 2023.

Changes in treasury shares presented by type of objectives pursued by the company were as follows during the 2023 fiscal year:

		Movements over the period
(In number of shares)	Position at 31/12/2022	Acquisition	Sale	Transfer	Reallocation	Cancellation
Liquidity agreement	78,442	597,243	572,184	-	-	-
Employee shareholding plan coverage	882,627	-	-	141,619 ^*	-	-
SHARES HELD BY THE COMPANY	961,069

(In number of shares)	Position at 31/12/2023	Fraction of the share capital at 31/12/2023	Nominal value at 31/12/2023 (in €)
Liquidity agreement	103,501	0.10%	310,503
Employee shareholding plan coverage	741,008	0.74%	2,223,024
SHARES HELD BY THE COMPANY	844,509	0.84%	2,533,527

^* Transfer following:
- the vesting of free shares to employees and corporate officers of Covivio and/or of companies belonging to its group;
- the allocation of shares to employees of the Covivio ESU as part of the 2022 incentive investment, plus the matching contribution, in shares.

Transactions carried out during the 2023 fiscal year are as follows:

	Acquisition		Sale
Share buyback programme	Number of shares	Average price per share (in €)	Number of shares	Average price per share (in €)
General Meeting of 21 April 2022	190,899	58.57	169,619	58.82
General Meeting of 20 April 2023	406,344	44.32	402,565	46.99
TOTAL	597,243	48.87	572,184	50.50

As at 31 December 2023, Covivio held 844,509 treasury shares representing 0.84% of the capital, valued at €76,369,076, or €90.43 per share, representing a par value of €2,533,527.

The company did not use derivatives in its share buyback programmes in the 2023 fiscal year.

The transaction costs during the 2023 fiscal year amounted to €34,616 excl. tax.

As the authorisation that was granted by the General Meeting on 20 April 2023 was for a period of 18 months, a new share buyback programme will be submitted to the General Meeting on 17 April 2024.

⁽¹⁾ The liquidity contract was transferred from 23 October 2023 to BNP Paribas Financial Markets (formerly BNP Paribas Arbitrage).

6.3.9 Share subscription and share purchase options and allocation of free shares

6.3.9.1 Share subscription and share purchase options

Since 2008, the company has not implemented a share subscription or share purchase options plan.

Since the last plan in force (plan No. 1403008 of 4 May 2007) expired on 11 October 2014, there is no longer any share subscription option exercisable within the Covivio group.

6.3.9.2 Allocation of free shares

The allocation of free shares within the Covivio group is to motivate and foster loyalty with employees who contribute to the company's growth by sharing the company earnings with them.

During the 2023 fiscal year, the Board of Directors, at the proposal of the Appointments and Remunerations Committee and pursuant to the delegations of powers granted by the General Meeting of 21 April 2022, awarded 166,087 free shares as detailed below, representing 0.16% of the capital as at 31 December 2023:

			Unit value, as estimated by an independent actuary			Vesting period
Date of the free share plans	Number of free shares allocated	Beneficiaries of the free shares	France	Italy	Germany	France
21 February 2023	62,372	Corporate officers and managers of the Covivio group	€24.34 ⁽¹⁾	€41.15 ⁽²⁾		3 years
			€41.15 ⁽²⁾
23 November 2023	9,090	Employees of the Covivio group (group plan)	€23.76 ⁽²⁾	N/A		3 years
	94,625	Employees of the Covivio group (discretionary plan)	€23.76 ⁽²⁾			3 years

	Vesting period		Retention period
Date of the free share plans	Italy	Germany	France	Italy	Germany
21 February 2023	3 years		/
23 November 2023	N/A		/	N/A
	3 years		/

⁽¹⁾ Allocations subject to performance requirements.

⁽²⁾ Allocations not subject to performance requirements.

The beneficiaries are not subject to any holding obligation, except for Covivio's executive corporate officers, who are required to hold 50% of the performance shares throughout their term of office, until they hold the equivalent in shares equal to two years of fixed remuneration. Above this threshold, they are free to dispose of shares.

The 2023 free share allocations granted to the company's executive corporate officers are presented in Section 5.3.4.2.1 of the Board of Directors' report on corporate governance.

The criteria for allocating free shares to staff members of the Covivio group are linked to conditions of continued presence and, particularly for discretionary plans, performance and potential for growth, to build loyalty and allow them to share in the company's stock market performance.

After the end of the fiscal year, on 15 February 2024, the Board of Directors allocated 80,643 free shares.

During the 2023 fiscal year, 101,145 free shares were granted to the beneficiaries indicated below:

		Number of allocated free shares delivered in 2023
Delivery date of the free shares	Date of the free share plan	French/Spanish beneficiaries	Italian beneficiaries	German beneficiaries	Number of beneficiaries
13 February 2023	13 February 2020	27,100	2,500	5,565	273
18 December 2023	16 December 2020	42,360	6,600	17,020	467

After the end of the fiscal year, 69,130 free shares were delivered to the beneficiaries indicated below:

		Number of allocated free shares delivered in 2024
Delivery date of the free shares	Date of the free share plan	French beneficiaries	Italian beneficiaries	German beneficiaries	Number of beneficiaries
13 February 2024	13 February 2020	7,426	4,665	10,447	13
19 February 2024	17 February 2021	41,342	2,750	2,500	4

The free shares allocated over the last five years are presented in Section 5.3.4.2.1.2. of the Board of Directors' report on corporate governance.

6.3.9.3 Details of adjustments made to share subscription options and free shares

No adjustments were made in 2023.

6.4 Stock market ‒ dividend

6.4.1 Data Sheet

CAPITALISATION	Share sheet - Euronext Paris
at 31/12/2023	• ISIN code: FR0000064578
€4,917 M	• Ticker Code: COV
	• Stock market: Euronext Paris
	• Market: Local securities - Compartment A (Large Cap) - SRD
	• Business sector: Real Estate Investment Trusts
	• SRD: eligible
	• Index: SIIC FRANCE, SBF 120, CAC MID100, EPRA Europe, MSCI, Euronext IEIF, GPR 250, FTSE4 Good, CAC SBT 1.5°C, DJSI World, Euronext Vigeo, Euronext® CDP Environment France EW
	• Standard & Poor's rating: BBB+, stable outlook
NUMBER OF LISTED SHARES
at 31/12/2023
101,006,389

6.4.2 Market price at 31 December 2023

The closing Covivio share price for the 2023 fiscal year was €48.68, bringing market capitalisation to €4.9 billion. In 2023, the Covivio share fell by -12.2%, and by -5.6% with the dividend reinvested.

Change in Covivio's share price over the year

6.4.3 Dividends distributed within the last five fiscal years

In the last five fiscal years, the dividends distributed and the corresponding tax rebate were as follows:

Fiscal year	Type of dividend	Dividend paid per share	Amount of dividend eligible for the 40% rebate ⁽²⁾	Amount of dividend not eligible for the 40% rebate
2018	Current	€4.60	€0.1479	€4.4521
2019	Current	€4.80	€0.7506	€4.0494
2020	Current	€3.60	€0.6681	€2.9319
2021	Current	€3.75	€0.9761	€2.7739
2022	Current	€3.75	€1.2939	€2.4561
2023 ⁽¹⁾	Current	€3.30	€1.0121	€2.2879

⁽¹⁾ In case of an overall option for a progressive rate of income tax (taxation specific to French tax residents).

⁽²⁾ Dividend proposed to the Combined General Meeting of 17 April 2024, with an option to receive payment in shares.

6.4.4 Dividend distribution policy

Covivio will propose to the General Meeting of 17 April 2024 the payment of a dividend of €3.30 per share for the 2023 financial year, with an option to receive payment in shares, equivalent to a payout ratio of 74% (dividend/EPRA Earnings).

The company's distribution policy has, of course, taken into account the provisions of the tax regulations for listed real estate investment companies mentioned in Section 6.2.1.11.

6.4.5 Appropriation of earnings for the fiscal year

The Board of Directors will put the following proposals to the General Meeting of Shareholders of 17 April 2024:

―	to allocate the loss for the fiscal year ended 31 December 2023 in the amount of €8,417,361.56:

(i) to the "Retained earnings" account, which will thus be reduced from €3,551,940 to €0,

(ii) to the "Distributable revaluation adjustment" account in the amount of €4,865,421.56, which will be reduced from €12,825,588.19 to €7,960,166.63;

―	to also proceed with the distribution of a sum of €333,321,083.70 deducted from:

(i) the account "Distributable revaluation reserve", in the amount of €7,960,166.63,

(ii) the account "Merger premium" in the amount of €325,360,917.07.

Thus, each share will receive a dividend of €3.30.

The dividend will be paid on 27 May 2024.

On the basis of the total number of shares comprising the share capital as of 15 February 2024, i.e. 101,006,389 shares, and subject to the possible application of the provisions of Article 25.3 of the company's Articles of Association to shareholders regarding Withholding Tax, it is proposed to a total dividend of €333,321,083.70 will thus be allocated. This dividend only gives entitlement to the 40% rebate in the event of an annual, express, overall and irrevocable option for the progressive income tax scale pursuant to Article 200 A 2 of the French General Tax Code, and only for the portion of this dividend deducted, where relevant, from earnings subject to corporation tax. In compliance with Article 158-3-3° b bis of the French General Tax Code, this rebate does not apply to earnings exempt from corporate income tax under the SIIC plan in application of Article 208 C of the French General Tax Code.

The corporate income tax-exempt dividend in application of Article 208 C of the French General Tax Code not eligible for the 40% rebate totals €231,094,740.

The dividend withheld on the profits subject to corporate income tax totals €102,226,343.70.

The dividend drawn against the company's profits exempt from corporate income tax pursuant to Article 208-3° quater of the French General Tax Code totals €0.

The Board will also propose to the General Meeting:

―	to resolve that, pursuant to the provisions of Article L. 225-210 of the French Commercial Code, the amount the shareholders may have waived, as well as the amount corresponding to treasury shares on the dividend payment date, which are not entitled to dividends, will be allocated to the "Retained earnings" account;
―	to grant all powers to the Board of Directors, with a right of subdelegation under the conditions stipulated by the legal and regulatory provisions, for the purposes of determining, considering the number of shares held by the company at the record date (included), the overall amount of the dividend and, consequently, the amount that will be allocated to the "Retained earnings" account.

6.5 Administration and management

6.5.1 Board of Directors

At the General Meeting of 31 January 2011, Covivio adopted the form of a société anonyme (public limited company) with a Board of Directors, separating the duties of Chairman and Chief Executive Officer. This structure establishes a clear distinction between the strategy, decision-making and control functions, which are the responsibility of the Board of Directors, and the operational and executive functions, which are the responsibility of General Management.

6.5.1.1 Appointments - Composition - Term of office - Dismissal (Articles 12 and 13 of the Articles of Association)

―	The company is administered by a Board of Directors comprising at least three members and no more than eighteen members, subject to statutory exemptions. The Board members are appointed by the Ordinary General Meeting.

A legal entity may be appointed as a Director, but it must, pursuant to applicable legal provisions, appoint a natural person to serve as its permanent representative to the Board of Directors. The permanent representatives are subject to the same conditions and obligations and have the same responsibilities as if they were Directors.

―

The term of office of Directors is four years. However, as an exception, the General Meeting may, upon suggestion of the Board of Directors, appoint or reappoint some Directors for a term of office of two or three years to allow for a staggered renewal of the Board of Directors. The term of a Director expires at the end of the Ordinary General Meeting called to approve the financial statements for the previous year, held in the year in which the term of the said Director expires.

The number of members of the Board of Directors over the age of 75 may not be greater than one third of the members in office. When this number is exceeded, and if a member of the Board of Directors aged 75 or over does not resign voluntarily within three months from the date the statutory limit was exceeded, the oldest member will be automatically considered to have resigned.

Directors may be reappointed indefinitely, subject to the aforementioned provisions governing the age limit.

Directors may be dismissed at any time by the General Meeting, without indemnity or prior notice.

In the event of vacancy resulting from the death or resignation from one or several Directors, the Board of Directors may make provisional appointments subject to ratification by the next Ordinary General Meeting, in accordance with the time frames and conditions provided for by law. Decisions taken and actions carried out remain valid even if the appointment is not ratified.

In the event of vacancy resulting from the death, resignation or dismissal of a Director, the Director appointed by the General Meeting or the Board of Directors as a replacement to that Director will hold that position only up to the remaining office of his or her predecessor.

If the number of Directors falls to less than three, the remaining Directors (or the Statutory Auditors, or an officer designated, at the request of any interested party, by the President of the Commercial Court) must immediately call an Ordinary General Meeting to appoint one or more new Directors in order to bring the Board up to the minimum legal number.

6.5.1.2 Office of the Board of Directors (Article 14 of the Articles of Association)

The Board of Directors appoints a Chairman, who must be a natural person, from among its members and one or more Vice-Chairmen if needed. It defines the terms of office, which may not exceed the appointee's term as a Board member, and which the Board may terminate at any time. The Chairman and Vice-Chairmen may be reappointed.

The age limit for the Chairman of the Board of Directors is 80. When the Chairman of the Board reaches this age limit during his or her term of office, he or she will be automatically deemed to have resigned.

If the Chairman is temporarily incapacitated or dies, the oldest Vice-Chairman is delegated to serve as Chairman. In a case of temporary incapacity, this delegation is given for a limited period and may be renewed. If the Chairman dies, this delegation is valid until the appointment of a new Chairman.

Meetings of the Board of Directors are chaired by the Chairman. If the Chairman is absent, the meeting is chaired by one of the Vice-Chairmen present, appointed for each meeting by the Board of Directors. In the absence of the Chairman and Vice-Chairmen, the Board of Directors must designate, for each meeting, one of the Directors present to chair the meeting.

The Board of Directors also appoints a Secretary, who does not have to be a member. It defines the term and scope of the Secretary's duties, which it may terminate at any time.

6.5.1.3 Notice of meetings and deliberations of the Board of Directors (Article 15 of the Articles of Association)

The Board of Directors meets as often as required by the interests of the company and whenever the Chairman deems appropriate, upon notice from the Chairman.

Directors representing at least one third (1/3) of the members of the Board of Directors may ask the Chairman to call a Board meeting at any time for a specific purpose.

If the roles of the Chief Executive Officer and the Chairman are separate, the Chief Executive Officer may ask the Chairman to call a Board of Directors meeting at any time for a specific purpose.

The Chairman is bound by the requests made to him or her in line with the aforementioned provisions, and must defer to them without delay.

Notices of meetings are conveyed by any written method at least five (5) days in advance. This five-day period may be reduced if one third (1/3) of the Directors agree to a shorter notification period. Meetings are held at the company's registered office or any other location indicated in the notice of meeting.

The Board of Directors validly deliberates only if at least half (1/2) of its members are present.

A Director may give a written proxy to another Director to represent him or her at a meeting of the Board of Directors in accordance with legal and regulatory provisions.

Decisions are adopted by a majority of the members present or represented. In the event of a tied vote, the meeting's Chairman does not have the casting vote.

In compliance with the applicable laws and regulations, the meetings of the Board of Directors may be held via videoconference or telecommunication or any other method allowed under the law and the regulations under the conditions defined by the Internal regulations adopted by the Board of Directors.

The deliberations of the Board of Directors are recorded in meeting minutes prepared in accordance with the law.

6.5.1.4 Powers of the Board of Directors (Article 16 of the Articles of Association)

The Board of Directors determines the strategy for the company's business and oversees its implementation. In compliance with the powers expressly reserved for General Meetings and within the limits of the corporate purpose, the Board of Directors handles all matters affecting the operation of the company and governs its business through its deliberations. The Board of Directors may take decisions by consulting the Directors in writing under the conditions provided for in Article L. 225-37 of the French Commercial Code.

In its relations with third parties, the company is also bound by the acts of the Board of Directors that are not within the company's purpose, unless it proves that the third party was aware that the act exceeded such purpose or that the third party should have been aware of this in view of the circumstances.

The Board of Directors carries out the checks and verification that it considers necessary.

Each Director will receive all the information necessary to perform his or her duties and may obtain from the Chairman or Chief Executive Officer all documents necessary to perform his or her mission.

The Board of Directors may confer special assignments for one or more specific purposes to one or more of its members, or to third parties who do not need to be shareholders.

The Board of Directors may also create one or more permanent or temporary specialised Committees charged with studying matters which the Board or the Chairman submit for their opinion, and in particular an Audit Committee, an Appointments and Remunerations Committee and a Strategy and Investment Committee. These Committees, the members and duties of which are defined by the Board, will conduct their activities under the responsibility of the Board.

6.5.1.5 Remuneration of the Directors (Article 17 of the Articles of Association)

The members of the Board of Directors may receive remuneration for their activities, the total amount of which is determined by the General Meeting and distributed freely by the Board of Directors.

The Board of Directors may allocate exceptional remuneration to Directors performing special assignments or mandates.

6.5.1.6 Powers of the Chairman of the Board of Directors (Article 18 of the Articles of Association)

The Chairman of the Board of Directors organises and directs the work of the Board and reports to the General Meeting.

He or she oversees the various corporate bodies of the company to ensure they are working smoothly and, in particular, that the Directors are in a position to fulfil their required duties.

The Board of Directors determines the amount, methods of calculation and payment of the Chairman's compensation, if any.

The Chairman of the Board of Directors may also assume the General Management of the company, in accordance with Article 19 of the Articles of Association.

6.5.1.7 Non-voting members (Article 20 of the Articles of Association)

The Board of Directors may appoint one or more non-voting members (natural persons or legal entities). It defines their term of office and any compensation if they are assigned a particular mission.

The non-voting members of the Board of Directors attend meetings of the Board as observers and may be consulted by the Board. They must be called to every meeting of the Board of Directors, which may task them with specific missions.

The Board of Directors may decide to pay the non-voting members a share of the remuneration allocated by the General Meeting to the Directors in respect of their activity and authorise the reimbursement of expenses incurred by the non-voting members in the interests of the company.

The non-voting members of the Board of Directors are subject to obligations, in particular to the confidentiality obligations stipulated by the Board of Directors in its Internal regulations.

6.5.2 General Management

6.5.2.1 General Management of the company (Article 19.1 of the Articles of Association)

The company's General Management is led, at the choice of the Board of Directors, either by the Chairman of the Board of Directors, or by another physical person appointed by the Board of Directors with the title of Chief Executive Officer.

The choice between these two methods of General Management is made by the Board of Directors, which must inform the shareholders and third parties under the conditions provided by law.

The Board of Directors' decision on the choice of General Management method is made by a majority of the Directors present or represented.

6.5.2.2 Chief Executive Officer (Article 19.1 of the Articles of Association)

When the General Management of the company is led by the Chairman of the Board of Directors, the provisions below on the Chief Executive Officer are then applicable to him or her in addition to the provisions specific to his or her role as Chairman of the Board of Directors.

When the Board of Directors chooses to separate the roles of Chairman and Chief Executive Officer, it will appoint the Chief Executive Officer, define his or her term of office and determine his or her compensation and any limits on his or her powers.

The Chief Executive Officer may be reappointed.

The age limit for holding the position of Chief Executive Officer, separate from the position of Chairman, is 67. Irrespective of the term for which it is granted, the Chief Executive Officer's office expires at the very latest at the end of the Ordinary General Meeting called upon to approve the financial statements for the previous year and held the year during which the Chief Executive Officer turns 67.

The Chief Executive Officer may be dismissed at any time by the Board of Directors. If the dismissal is decided upon without just cause, it may result in damages being paid, except when the Chief Executive Officer is also the Chairman of the Board of Directors.

The Chief Executive Officer is fully empowered to act in any situation on behalf of the company. He or she exercises these powers within the limits of the corporate purpose and subject to the powers granted expressly by law and these Articles of Association to General Meetings and the Board of Directors.

The Chief Executive Officer represents the company in its relationships with third parties. The company is also bound by the acts of the Chief Executive Officer that are not within the limits of its corporate purpose, unless it proves that the third party was aware that the act exceeded such purpose or that the third party should have been aware of this in view of the circumstances. The publication of the Articles of Association is not on its own sufficient basis for such proof.

6.5.2.3 Deputy CEO (Article 19.2 of the Articles of Association)

At the suggestion of the Chief Executive Officer, the Board of Directors may appoint, within its membership or not, one or several natural persons to assist the Chief Executive Officer, bearing the title of Deputy CEO.

The maximum number of Deputy CEOs is set at five.

In agreement with the Chief Executive Officer, the Board of Directors will determine the scope and duration of the powers granted to the Deputy CEOs.

With respect to third parties, the Deputy CEOs have the same powers as the Chief Executive Officer.

The age limit for holding the position of Deputy CEO is 67.

Irrespective of the term for which they have been granted, the functions of Deputy CEO expire at the very latest at the end of the Ordinary General Meeting called upon to approve the financial statements for the previous year and held in the year during which the Deputy Executive Officer turns 67.

The Board of Directors determines the compensation of the Deputy CEO Officers.

If the Chief Executive Officer relinquishes his or her duties or is prevented from carrying them out, the Deputy CEOs will retain their functions and powers unless otherwise decided by the Board of Directors, until such time as a new Chief Executive Officer is appointed.

Deputy CEOs may be dismissed at any time by the Board of Directors, at the suggestion of the Chief Executive Officer. If the dismissal is decided upon without just cause, it may result in damages being paid.

6.6 Information about the company and its investments

As regards the main subsidiaries and equity investments, their main activity is presented in Section 1.3 of the Universal Registration Document.

6.6.1 Group organisation

Covivio is an investor in the office real estate sector in France, Italy and Germany, with investments in commercial and residential real estate companies:

―	equity investments in commercial real estate through the company Covivio Hotels (SIIC), owner of Hotel Operating properties in France, Germany, Italy, Luxembourg, the United Kingdom, the Netherlands, Belgium, Portugal, Spain, Ireland, Poland, the Czech Republic and Hungary;
―	a holding in residential real estate in Germany through Covivio Immobilien SE (an unlisted European company).

The Group consolidated by Covivio was thus constituted on 31 December 2023 of 443 separate companies, of which 106 were in the Offices sector, 183 companies in Hotels in Europe, 141 companies in the Residential sector, 12 services companies and one in car parking facilities.

Covivio has teams in charge of managing its development and its assets throughout the territory. Each main group company relies upon a dedicated asset management team.

This services provider activity developed within the Covivio group concentrates on enhancing portfolio value through:

―	Asset Management services: this function is focused on the real estate strategy to adopt regarding the assets held (disposal, renovations, financial management, etc.). Asset by asset, it consists of value creation to meet the expectations of the Group's companies by optimising the "profitability/risk" ratio;
―	Asset Development services: this function consists of assisting Group companies in activities to enhance the value of assets in the portfolio through real estate development. This function requires extensive expertise in real estate development;
―	Property Management services: management of all aspects of the life cycle of real estate assets (payments, ongoing and preventive maintenance, service management, etc.). Property Management requires extensive expertise in lease management, expense management, technical management, client relations management, etc.

For development operations involving large projects, Covivio has a dedicated team in its subsidiary Covivio Développement.

Property Management of Covivio and Covivio Hotels is provided by Covivio Property, a subsidiary of Covivio, which is a shared platform bringing together central services and personnel from the regional offices. Rental property management of the residual accommodation of Foncière Développement Logements was outsourced to Quadral Property until Foncière Développement Logements was merged with Covivio on 30 September 2022.

The service agreements are straightforward and non-exclusive contracts.

The specialisation by type of assets of the different companies of the Covivio group as well as the procedures put in place prevent the exposure of the companies concerned to potential conflicts of interest, in terms of investments and/or divestments or asset management.

6.6.2 Equity investments

In compliance with Article L. 233-6 of the French Commercial Code, the equity investments that took place in the fiscal year are presented in the notes to the separate financial statements, Section 4.5.1.3 of the Universal Registration Document.

6.6.3 Results of subsidiaries and investments

The table of earnings of the subsidiaries and investments is shown in the notes to the separate financial statements in Section 4.5.6.6 of the Universal Registration Document.

6.6.4 Company earnings over the past five fiscal years

The table of earnings of the company over the past five fiscal years is shown in the notes to the separate financial statements in Section 4.5.6.9 of the Universal Registration Document.

6.6.5 Information on cross-shareholding

None.

6.6.6 Extraordinary events and litigation

The Group may be involved in court or administrative proceedings and is liable to be subject to a notice of deficiency from the French Tax administration.

To the company's knowledge, to date, except for the main proceedings in progress presented in Sections 4.2.2.9.2 and 4.2.5.12, in Part 4 of the Universal Registration Document, there are no other extraordinary events or litigation likely to materially affect the portfolio, financial position, business or results of Covivio or its subsidiaries.

6.6.7 Ratings

In May 2023, S&P confirmed Covivio's financial rating of BBB+ with a stable outlook.

6.7 Significant agreements

During the last two fiscal years:

―	no material contract was entered into by the issuer or any other member of the Group;
―	no contract has been entered into by any member of the Group containing provisions conferring on any member of the Group a significant obligation or right for the entire group;

other than those entered into in the normal course of business, and with the exception of financial contracts outstanding at 31 December 2023 and presented below.

		ISIN code	Issue date	Initial nominal amount	Maturity	Rate
Covivio	Green bonds	FR0013170834	20 May 2016	€500 M	20 May 2026	1.875%
		FR0013262698	21 June 2017	€500 M	21 June 2027	1.500%
		XS1698714000	17 October 2017	€300 M	17 October 2024	1.625%
		XS1772457633	20 February 2018	€300 M	20 February 2028	2.375%
		FR0013447232	17 September 2019	€500 M	17 September 2031	1.125%
		FR0013519279	23 June 2020	€500 M	23 June 2030	1.625%
		FR001400MDV4	5 December 2023	€500 M	5 June 2032	4.625%
	Green private placement ^*	FR0014001LV5	20 January 2021	€100 M	20 January 2033	0.875%
	EMTN (Euro Medium Term notes) programme	EMTN bond issue programme covering the company and Covivio Hotels, as a second issuer, for a total amount of €6 billion, of which €4 billion allocated to Covivio.
Covivio Hotels	Bond issues	FR0013367422	24 September 2018	€350 M	24 September 2025	1.875%
		FR0014004QI5	27 July 2021	€500 M	27 July 2029	1.000%

	Outstanding at end-2023
Covivio	€500 M
	€595 M
	€300 M
	€300 M
	€599 M
	€599 M
	€500 M
	€100 M
	EMTN bond issue programme covering the company and Covivio Hotels, as a second issuer, for a total amount of €6 billion, of which €4 billion allocated to Covivio.
Covivio Hotels	€350 M
	€599 M

^* Private placement under the EMTN programme.

The main financial agreements are detailed in the notes to the consolidated financial statements presented in Part 4 (Section 4.2.5.11) and Part 1 (Section 1.4) of this Universal Registration Document.

6.8 Person responsible for the Universal Registration Document

6.8.1 Person responsible for the Universal Registration Document

Christophe Kullmann

Chief Executive Officer (CEO)

6.8.2 Certification of the person responsible for the Universal Registration Document including the annual financial report

I hereby certify that the information contained in this Universal Registration Document is, to the best of my knowledge, consistent with the facts and does not contain any omission likely to alter its scope.

I certify, to the best of my knowledge, that the financial statements have been prepared in accordance with the applicable accounting standards and give a fair view of the assets, liabilities, financial position and profit or loss of the company and all of its consolidated companies, and that the information in the management report of the Board of Directors, including the concordance table at the end of the Universal Registration Document section 7.3, fairly reflects the development of the business, the profit or loss and the financial position of the company and all of its consolidated companies, as well as a description of the main risks and uncertainties they face.

Paris, 18 March 2024

Christophe Kullmann, Covivio Chief Executive Officer

6.8.3 Person responsible for the information

Vladimir Minot,

Director of Financial Communication and Investor Relations

Address: 10, rue de Madrid - 75008 Paris

Telephone: +33 (0)1 58 97 51 94

e-mail: vladimir.minot@covivio.fr

Website: www.covivio.eu

6.8.3.1 Provisional timetable for financial reporting

	Date	Negative window period ^*
Publication of revenue of the first quarter of 2024	23 April 2024	8 April 2024 to 23 April 2024 inclusive
Publication of half-year results for 2024	22 July 2024	22 June 2024 to 22 July 2024 inclusive
Publication of revenue of the third quarter of 2024	22 October 2024	7 October 2024 to 22 October 2024 inclusive

^* Corresponds to the period during which persons exercising managerial responsibilities and insiders of Covivio must refrain from any transaction involving the company's shares.

6.8.3.2 Historical financial information

Pursuant to Article 19 of European Commission Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 and in accordance with Annexes 1 and 2 of the delegated Regulation (EU) 2019/980 of the Commission of 14 March 2019, the following information is incorporated by reference in this Universal Registration Document:

―	the consolidated financial statement and the annual statements for the period ended 31 December 2022 and the report by the Statutory Auditors concerning same appear on pages 275 to 387 of the 2022 Universal Registration Document filed with the AMF on 16 March 2023 under No. D.23-0101;
―	the consolidated financial statement and the annual statements for the period ended 31 December 2021 and the report by the Statutory Auditors concerning same appear on pages 253 to 374 of the 2021 Universal Registration Document filed with the AMF on 16 March 2022 under No. D.22-0108.

7 Concordance tables

7.1 Concordance table for the Universal Registration Document

(Corresponding to the items in Annexes 1 and 2 of Regulation (EU) 2019/980 of 14 March 2019).

1. Responsible parties, third-party information, appraiser statements and approval of the competent authority
1.1. Parties responsible for information	6.8.1, 6.8.3	570
1.2. Statements made by the responsible parties	6.8.2	570
1.3. Appraiser declarations and/or reports	1.7.3	16
1.4. Third-party information	N/A
2. Statutory Auditors
2.1. Names and addresses	5.8	545
2.2. Resignations/non-renewals	N/A
2.3. Remuneration	4.2.7.5	347
3. Risk factors
3.1. Risks relating to Covivio's activity and strategy	2.1.1, 2.1.2	82 - 82
3.2. Financial risks	2.1.2, 4.2.2	85, 296
3.3. Legal, fiscal and regulatory risks	2.1.2	85
3.4. Risks related to specific regulations	2.1.2	85
3.5. Environmental risks	2.1.3	98
3.6. Risks related to the costs and availability of appropriate insurance cover	2.1.2	85
4. Information about the issuer
4.1. History and development of the company	6.1.1	548
4.1.1. Name and purpose of the company	6.2.1	551
4.1.2. Place of registration and registration number of the company	6.2.1.4	551
4.1.3. Date of incorporation and term of the company	6.2.1.9	551
4.1.4. Registered office and legal form of the company	6.2.1.2, 6.2.1.3	551
4.1.5. Development of the company's activity	1.1 , 4.2.5	10, 314
4.2. Investments	1.2, 1.2.6, 1.2.7	18, 22
4.2.1. Main investments made during the financial year	1.2.6, 1.2.7	22
4.2.2. Main investments in progress	1.2.6, 1.2.7	22
5. Overview of activities
5.1. Primary activities	1.2	18
5.2. Primary markets	1.3	26
5.3. Key events underpinning the development of activity		2
5.4. Strategy and objectives		2
5.5. Possible dependence (Patents/Licences/Industrial and Commercial Contracts)	N/A
5.6. Competitive position	N/A
5.7. Investments	1.2.6, 1.2.7	22
6. Organisation chart
6.1. Description of the Group	6.1.2	550
6.2. List of major subsidiaries	4.2.3.3 , 4.5.6.6 , 6.1.2	300, 390, 550
7. Review of the financial position and income
7.1. Financial position	1.4, 4.1.1	42, 289
7.2. Operating income	1.4.1.3 , 4.1.2	43, 291
8. Cash and share capital
8.1. Issuer capital	4.1.4, 4.5.3.3	293, 375
8.2. Cash flow sources and amounts	4.1.5	294
8.3. Borrowing conditions and financing structure	1.5 and 4.2.5.11	54, 328
8.4. Restriction on the use of funding	N/A
8.5. Financing sources needed to fulfil commitments relating to investment decisions	1.5; 4.2.5.11	54, 328
9. Regulatory framework	2.1.2	85
10. Information on trends
10.1. Principal trends	1.1, 1.3	10, 26
10.2. Events that could influence trends	4.2.4	312
11. Earnings projections or estimates	N/A
12. Administrative, management and supervisory bodies and General Management
12.1. Information on members of the administrative, management and supervisory bodies	5.3.1, 5.3.2, 5.3.3 6.5	453, 459, 498, 564
12.2. Conflicts of interest of administrative, management and supervisory bodies and General Management	5.3.2.2.4.3	480
13. Remuneration and benefits
13.1. Amounts of remuneration paid and benefits in kind	5.3.4.2 , 5.3.4.3 , 5.3.4.4	516, 530, 533
13.2. Total amount provisioned or recognised for pension payments, retirement schemes and other benefits	4.2.5.12	335
14. Operation of the administrative and management bodies
14.1. Date of expiration of current term of office	5.2.1.1, 5.3.2.1	444, 459
14.2. Information on service contracts linking members of the Group's administrative, management or supervisory bodies to the issuer or any of its subsidiaries	4.2.7.4	347
14.3. Information about the Audit and the Remuneration Committees of the issuer	5.3.3.1 5.3.3.2	500, 502
14.4. Issuer's compliance with the applicable corporate governance system in force	5.3	452
14.5. Trends that could impact the corporate governance of the Group	5.3.2.1.2	463
15. Employees
15.1. Number of employees at period-end covered by the historical financial information	3.7.2	257
15.2. Profit-sharing and stock options	6.3.7, 6.3.9	559, 561
15.3. Agreement providing for employee participation in the capital of the issuer	3.5.1.3.2	205
16. Principal shareholders
16.1. Shareholders owning more than 5% of the share capital or voting rights	6.3.3	556
16.2. Different shareholder voting rights	N/A
16.3. Control of the issuer	6.3.3	556
16.4. Agreement known to the issuer whose implementation could, at a later date, result i n a change of control	N/A
17. Transactions with related parties	4.2.7.4	347
18. Financial information concerning the portfolio and financial position and the issuer's results
18.1. Historical financial information	4.1	289
18.2. Interim and other financial information	N/A
18.3. Audit of annual historical information	4.1	289
18.4. Pro forma financial information	N/A
18.5. Dividend distribution policy	6.4.4	563
18.6. Arbitration and judicial proceedings	4.2.2.9	299
18.7. Significant change in the financial or commercial position	N/A
19. Additional information
19.1. Share capital	6.3	556
19.2. Corporate charter and Articles of Association	6.2	555
20. Significant agreements	6.7	569
21. Documents accessible to the public	6.2.1.13	552

7.2 Table of concordance with the annual financial report

(Used to identify the information comprising the annual financial report as provided under Articles L. 451-1-2 of the French Monetary and Financial Code and 222-3 of the AMF's General Regulations).

Type of information	Relevant parts	Pages
1 - Annual financial statements	4.4, 4.5	360, 363
2 - Consolidated financial statements	4.1, 4.2	289, 295
3 - Management report	Information and management, 7.3 / Concordance table with the management report	577
4 - Statement of individuals assuming responsibility for the document	6.8.2	570
5 - Report of the Statutory Auditors of the annual financial statements (including the observations on corporate governance) and the consolidated financial statements	4.3 4.6	354, 397
6 - Report from the Board of Directors on corporate governance	5.3	452

7.3 Concordance table with the management report

The table of concordance below cross-references information in this Registration Document with information in the company's and the Group's management report, as required by legal and regulatory provisions.

Type of information	Relevant parts	Pages
Presentation of the situation of the company and the Group during the past fiscal year (L. 232-1 II and L. 233-26 of the French Commercial Code); Analysis of changes in the business, results and financial position of the company and the Group and key financial and non-financial performance indicators (L. 225-100-1 I 1 and 2 and L. 233-6 of the French Commercial Code)	1.1 - 1.8	10 - 79
Foreseeable outlook for the company and Group (L. 232-1 II and L. 233-26 of the French Commercial Code)	1.1	10
Significant events occurring between the closing date of the fiscal year and the date of the management report (L. 232-1 II and L. 233-26 of the French Commercial Code)	4.2.9, 4.5.6.8	353, 396
R&D activities (L. 232-1 II and L. 233-26 of the French Commercial Code)	4.5.6.7	396
Existing subsidiaries (L. 232-1 II of the French Commercial Code)	6.2.1.5	551
Consolidated statement of non-financial performance (L. 225-102-1 and R. 225-105 of the French Commercial Code)	2023 Statement of non-financial performance	105
Description of the main risks and uncertainties (L. 225-100-1 I 3 of the French Commercial Code)	Risks and control mechanisms	81
Financial risks linked to climate change and measures taken to reduce them (L. 22-10-35 1 of the French Commercial Code)	2.1.3	98
Main features of internal control and risk management procedures (L. 22-10-35 2 of the French Commercial Code)	2.2	99
Objectives and policy in the areas of hedging and exposure to price risks, credit risks, liquidity risks and cash flow risks (L. 225-100-1 I 4 of the French Commercial Code)	1.5.5, 2.1.2	56, 85
Information relating to the company's shareholding structure (L. 233-13 and L. 247-2 III of the French Commercial Code), statement of employee shareholding at the year-end (L. 225-102 of the French Commercial Code); possible adjustments for securities providing access to the share capital (L. 228-99 and R. 228-90 of the French Commercial Code)	6.3	556
Information on the number of shares purchased and sold during the financial year under a share buyback programme, and characteristics of these transactions (L. 225-211 of the French Commercial Code)	6.3.8	559
Company earnings over the past five financial years (R. 225-102 of the French Commercial Code)	6.6.4	568
Amount of dividends paid in respect of the past three financial years (French General Tax Code, Article 243 bis)	6.4.3	563
Information on terms of payment (L. 441-14 of the French Commercial Code)	1.4.1.7	50
Amount of sumptuary expenses (French General Tax Code, Art. 223 quater)	4.5.4.6	385
Non-deductible overhead expenses to be added back to taxable income (French General Tax Code, Article 223 quinquies)	4.5.4.6	385
Significant equity investments or takeovers of companies based in France and activity of the company's subsidiaries (L. 233-6 of the French Commercial Code).	4.2.5.3, 4.5.6.6	322, 390
Report from the Board of Directors on corporate governance (L. 225-37 of the French Commercial Code)	5.3	452
• Remuneration policy for corporate officers (L. 22-10-8 of the French Commercial Code)	5.3.4.1	509
• Information relating to all compensation of corporate officers for the past financial year (L. 22-10-9 I of the French Commercial Code)	5.3.4.2 5.3.4.3	516, 530
• Allocation and retention of free shares by executive corporate officers (L. 225-197-1 II of the French Commercial Code)	5.3.4.1.2.1.12	513
• List of offices and functions held in all organisations by each of the executive officers during the financial year (L. 225-37-4 1 of the French Commercial Code)	5.3.1.1, 5.3.2.1.3	453, 464
• Agreements between a corporate officer or a major shareholder and a subsidiary according to Article L. 233-3 (Article L. 225-37-4 2 of the French Commercial Code)	5.3.2.2.3.1	478
• Summary of capital increase authorisations still in effect (L. 225-37-4 3 of the French Commercial Code)	5.3.5.2	533
• Methods by which General Management exercises powers and limitations to the powers of the Chief Executive Officer and the Deputy CEOs (L. 225-37-4 4 and L. 22-10-10 3 of the French Commercial Code)	5.3 and 5.3.1.2	452, 456
• Membership and conditions for preparing and organising the work of the Board of Directors (L. 22-10-10 1 of the French Commercial Code)	5.3.2.1, 5.3.2.2	459, 476
• Diversity policy applied to the members of the Board of Directors and balanced representation of women and men within the executive bodies (L. 22-10-10 2 of the French Commercial Code)	5.3.2.2.5, 5.3.1.5	458, 481
• Application of the corporate governance Code for listed companies (L. 22-10-10 4 of the French Commercial Code)	5.3	452
• Special procedures for shareholder participation in the General Meeting (L. 22-10-10 5 of the French Commercial Code)	5.3.5	533
• Description of the evaluation procedure for current agreements and its implementation (L. 22-10-10 6 of the French Commercial Code)	5.3.2.2.3.2	478
• Elements that could be relevant in the event of a public offer (L. 22-10-11 of the French Commercial Code)	5.3.6	535
• Summary of the operations realised by the social mandates and related parties in relation to company securities (L. 621-18-2 of the Monetary and Financial Code and L. 223-26 of the General Regulations of the AMF)	5.3.1.3, 5.3.2.1.4	456, 476

Glossary

Asset value

The portfolio presented includes investment properties, properties under development, as well as operating properties and properties in inventory for each of the entities, stated at their fair value. For the Hotel Operating properties it includes the valuation of the portfolio consolidated under the equity method. For offices in France, the portfolio includes asset valuations of Euromed and New Vélizy, which are consolidated under the equity method.

Cost of development projects

This indicator is calculated including interest costs. It includes the costs of the property and costs of construction.

Debt interest rate

―	Average cost:

Financial cost of bank debt for the period + financial cost of hedges for the period / Average cost of debt outstanding in the year

―	Spot rate: Definition equivalent to average interest rate over a period of time restricted to the last day of the period.

Definition of the acronyms and abbreviations used:

MRC: Major Regional Cities, i.e. Bordeaux, Grenoble, Lille, Lyon, Metz, Aix-Marseille, Montpellier, Nantes, Nice, Rennes, Strasbourg and Toulouse

―	ED: Excluding Duties
―	ID: Including Duties
―	IDF: Paris region (Île-de-France)
―	ILAT: French office rental index
―	CCI: Construction Cost Index
―	CPI: Consumer Price Index
―	RRI: Rental Reference Index
―	PACA: Provence-Alpes-Côte-d'Azur
―	LFL: Like-for-Like
―	GS: Group Share
―	CBD: Central Business District
―	Rtn: Yield
―	Var.: Change
―	MRV: Market Rental Value

EPRA NTA, NRV and NDV per share

EPRA NTA, NRV and NDV per share are calculated pursuant to the EPRA recommendations, based on the shares outstanding as at year-end (excluding treasury shares) and adjusted for the effect of dilution.

Firm residual term of leases

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

Green Assets

"Green" buildings, according to IPD, are those where the building and/or its operating status are certified as HQE, BREEAM, LEED, etc. and/or which have a recognised level of energy performance such as the BBC-effinergie®, HPE, THPE or RT Global certifications.

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.

This change is restated for certain severance pay and income associated with the Italian real estate (IMU) tax.

Given specificities and market practices in Germany, the like-for-like change is computed based on the rent in €/m2 spot N versus N-1 (without vacancy impact) on the basis of accounted rents.

For Hotel Operating properties (owned by FDMM), like-for-like change is calculated on an EBITDA basis.

Like-for-like change in value

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

The like-for-like change presented in portfolio tables is a variation taking into account Capex works done on the existing portfolio. The restated like-for-like change in value of this work is cited in the comments section. The current scope includes all portfolio assets.

Restatement done:

―	deconsolidation of acquisitions and disposals realised over the period
―	restatement of works carried out on assets under development during the N period.

Loan To Value (LTV)

The LTV calculation is detailed in Part 4 "Financial Resources"

The calculation of the EPRA LTV is available in the dedicated EPRA report.

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 rates are calculated using annualised data solely on the strategic activities portfolio.

The "Occupancy rate" indicator includes all portfolio assets except assets under development.

Operating assets

Properties leased or available for rent and actively marketed.

Projects

―	Committed projects: these are projects for which promotion or construction contracts have been signed and/or work has begun and has not yet been completed at the closing date. The delivery date for the relevant asset has already been scheduled. They might pertain to VEFA (pre-construction) projects or to the repositioning of existing assets.
―	Managed projects: These are projects that might be undertaken and that have no scheduled delivery date. In other words, projects for which the decision to launch operations has not been finalised.

Recurring net result

EPRA Earnings is defined as "the recurring result from operating activities". It is the indicator for measuring the company's performance, calculated according to EPRA's Best Practices Recommendations. The EPRA Earnings per share is calculated on the basis of the average number of shares (excluding treasury shares) over the period under review.

―	Calculation:

(+) Net rental income

(+) EBITDA of Hotel Operating properties activities and coworking

(+) Income from other activities

(-) Net operating costs (including costs of structure, costs of development projects, revenues from administration and management)

(-) Depreciation of operating assets

(-) Net change in provisions and other

(-) Cost of the net financial debt

(-) Interest charges linked to finance lease liability

(-) Net change in financial provisions

(+) EPRA Earnings of companies consolidated under the equity method

(-) Corporate taxes

(=) Recurring net income

Rental activity

Rental activity includes mention of the total surface areas and the annualised rental income for renewed leases, vacated premises and new lettings during the period under review.

For renewed leases and new lettings, the figures provided take into account all contracts signed in the period so as to reflect the transactions completed, even if the start of the leases is subsequent to the period.

Lettings relating to assets under development (becoming effective at the delivery of the project) are identified under the heading "Pre-lets".

Rental income

―	Recorded rent corresponds to gross rental income accounted for over the year by taking into account 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. assets leased or available for rent and actively marketed.
―	Annualised "topped-up" rental income corresponds to the gross amount of guaranteed rent for the full year based on existing assets at the period end, excluding any relief.

Restatements

―	deconsolidation of acquisitions and disposals realised on the N and N-1 periods;
―	restatements of assets under works, i.e.:
―	restatement of released assets for work (realised on N and N-1 years),
―	restatement of deliveries of assets under works (realised on N and N-1 years).

Surface area

―	SHON: Gross surface
―	SUB: Gross used surface

Unpaid rent (%)

Unpaid rent corresponds to the net difference between charges, reversals and irrecoverable loss of income divided by rent invoiced. These appear directly in the income statement under net cost of unrecoverable income (except in Italy where unpaid amounts not relating to rents were restated).

Yields/return

―	The portfolio returns are calculated according to the following formula:

Gross annualised rent (not corrected for vacancy) / Value excl. duties for the relevant scope (operating or development)

―	The returns on asset disposals or acquisitions are calculated according to the following formula:

Gross annualised rent (not corrected for vacancy) / Acquisition value including duties or disposal value excluding duties

COVIVIO

covivio.eu

10 rue de Madrid - 75008 Paris

Tel.: +33 (0)1 58 97 50 00

Follow us on Twitter @covivio_

and on social networks