CORESTATE further accelerated its profitable growth in the first half of 2017. All numbers reflect the organic growth of CORESTATE since the half-year numbers do not yet capture the effects of the acquisitions of Hannover Leasing and Helvetic Financial Services AG (HFS).
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor with headquarters in Luxembourg, further accelerated its profitable growth in the first half of 2017. All numbers reflect the organic growth of CORESTATE since the half-year numbers do not yet capture the effects of the acquisitions of Hannover Leasing and Helvetic Financial Services AG (HFS). Aggregate Revenues and Gains amounted to Euro 48.6 million, up 116% compared to the first half of 2016. Net Profit adjusted by one-off effects in connection with corporate actions and M&A transactions increased more than four-fold to Euro 22.8 million (first half of 2016: Euro 5.1 million).
Given the positive development over the first six months and the strong outlook, the company confirmed the guidance for the ongoing financial year it had last raised in July 2017. Aggregate Revenues and Gains will amount to between Euro 170 and 180 million, net profit before one-off effects is anticipated at between Euro 85 and 90 million, which corresponds to EBITDA before one-off effects of between Euro 115 and 120 million.
The integration of HFS and the ongoing restructuring of Hannover Leasing are on schedule. Over the first six months of this year, CORESTATE significantly increased its cooperation with pre-eminent institutional investors. Overall, CORESTATE completed real estate transactions totalling Euro 1.4 billion over the first half of 2017.
With Euro 356 million the equity raised from private and institutional investors are also substantially higher year on year in the first half of 2017. Assets under management at mid-year 2017 were up 26% compared to the end of 2016. Together with the assets of Hannover Leasing and HFS, assets under management as of the end of July 2017 amounted to about Euro 20 billion.
CORESTATE’s positive development is also reflected in the capital market: the price of the CORESTATE share more than doubled over the first six months, significantly outperforming the real estate sub-sectors of the relevant SDAX and DAX benchmarks. In addition, CORESTATE placed close to one million new shares with domestic and international institutional investors in February 2017 in the context of a capital increase that was several times oversubscribed. Together with the new shares issued at the beginning of July during another – this time non-cash – capital increase in the context of the HFS acquisition, CORESTATE’s market capitalisation amounted to significantly in excess of Euro one billion (based on the closing price on 31 July 2017). As a result, CORESTATE is now one of the biggest listed real estate investment managers in the German-speaking region.
“Our organic growth and the acquisitions enable us to exploit additional earnings potential. We expect our investment volume to increase further particularly on the back of new investment product launches. CORESTATE will also participate in the increasing consolidation activities in the market via selective inorganic growth,” explains Sascha Wilhelm, CEO of CORESTATE Group. “Overall, CORESTATE’s earnings base will continue to broaden and stabilise. Particularly the contribution of recurring revenues to total income will continue to improve significantly. We will bring additional highly qualified colleagues into the team to accommodate this growth and future consolidations.”
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.
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