CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated real estate investment manager and co-investor based in Luxembourg, has completed another successful year. Compared to the previous year, Aggregate Revenues and Gains increased by c. 27 % to now Euro 59.7 million (2015: Euro 47.1 million) while the Net Profit as reported is up by c. 54 % to Euro 15.6 million (2015: Euro 10.1 million), translating into an increase in Earnings per Share of c. 31 % to Euro 1.47 / Share. Adjusted Net Profit (net of certain one-off items) came in at Euro 19.4 million (2015: Euro 16.6 million). All key financials thus exceeded the previous year’s results considerably, and are slightly above the latest forecast that was raised in December 2016.
Sascha Wilhelm, Chief Executive Officer of CORESTATE: “We have once again demonstrated that the CORESTATE business model works successfully and profitably. We are confident that we will be able to continue our sustainable growth momentum in the next few years, thanks to our continually growing client base. An increasing number of investors – among them large institutional investors such as Bayerische Versorgungskammer – trust in our capabilities as an investment manager and benefit from the very high returns generated with our investment products. In the coming months and years, we will continue to increase our assets under management through longer-term investment products and larger transaction volumes. Naturally, our shareholders will participate to an appropriate extent in our company’s success via our attractive distribution policy. At the Annual Annual General Meeting, we will propose a distribution of 70 % of the Adjusted Net Profit.”
Total transaction volume increased by c. 7 % to Euro 920 million, and the volume of newly launched investment products rose by c. 45 % to Euro 735 million driven by strong demand for the company’s highstreet retail and microliving investment products both from institutional as well as semi-institutional/private clients. As a result, Assets under Management increased by c. 35 % to Euro 2.8 billion by year-end 2016. Following the completion of the acquisition of Hannover Leasing Group, this figure is projected to increase to c. Euro 16 billion, and CORESTATE’s revenue structure will be further strengthened by the substantial increase in recurring revenues from long-term management contracts.
For 2017, CORESTATE expects another significant increase in Aggregate Revenues and Gains to Euro 75 to 80 million (2016: Euro 59.7 million) and in Net Profit to Euro 30 to 32 million (2016: 15.6 million). This forecast does not include the effects of the acquisition of 94.9 % of the Hannover Leasing Group, which is expected to be completed in the first half of this business year. Completion of the transaction is still subject to the conclusion of the owner control procedure of the German Federal Financial Supervisory Authority, BaFin.
“With the successful capital increase, the initial public offering and the acquisition of the Hannover Leasing Group, we have reached important milestones in 2016 and charted the course for the company’s successful future development. We plan to, and will, establish CORESTATE as a leading real estate investment manager in Europe in the business year 2017 and beyond,” emphasizes Sascha Wilhelm, Chief Executive Officer of CORESTATE.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
Forward-looking statements
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