CORESTATE continues on its course of dynamic and profitable growth. After nine months, its aggregate revenues amounted to Euro 83.4 million, more than 111% higher than for the prior-year period (Euro 39.6 million). The adjusted net profit for the year grew by 121% to Euro 26.9 million (prior-year period: Euro 12.1 million).
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor headquartered in Luxembourg, continues on its course of dynamic and profitable growth. After nine months, its aggregate revenues amounted to Euro 83.4 million, more than 111% higher than for the prior-year period (Euro 39.6 million). The adjusted net profit for the year grew by 121% to Euro 26.9 million (prior-year period: Euro 12.1 million). Including the CPF1, that has been collected in the reporting period and was recognized as revenues in the income statement end of October, the aggregate revenues amounted to Euro 123.7 million and adjusted net profit for the year to Euro 62.3 million. This corresponds to 71% of the guidance 2017.
The past few months have confirmed expectations with regard to both the positive development of the Group’s core business and the growth stimulated by the newly acquired companies Helvetic Financial Services AG (HFS) and ATOS Group (ATOS), which has led the Management Board to affirm its forecast for the entire current fiscal year. Aggregate revenues will lie between at least Euro 170 million and Euro 180 million, and net income before one-off items between at least Euro 85 million and Euro 90 million. Assets under management (AuM) will total Euro 22 billion by year end 2017.
For 2018, CORESTATE is predicted to continue this positive development. Due to cost synergies within the Group, the Management Board has raised its forecast for the 2018 financial year. The company expects adjusted net profit of Euro 120 million, an adjusted EBITDA of Euro 155 million and total revenues of more than Euro 230 million. A high proportion of the Group’s earnings, around 85%, are recurring.
Through integration and restructuring measures, the profitability of Hannover Leasing (HL) has increased from a Euro 17.8 million loss to a Euro 4.6 million profit in the third quarter of 2017. This successful turnaround has been primarily due to cost reduction and focusing on new business, and has resulted in the highest quarterly earnings for HL in almost ten years. Integration of the newly acquired asset managers HFS and ATOS has begun and will be reflected in the 2018 results. Sascha Wilhelm, CEO of CORESTATE: “For us, Hannover Leasing is the litmus test for successful restructuring and integration. We treat these areas with the same professionalism with which we manage the portfolios of our investors.”
Through this, CORESTATE has further strengthened its position in the capital market. The CORESTATE share has been listed in the Prime Standard of the German Stock Exchange since 2 November 2017. On 6 November, Standard and Poor’s published its first long-term corporate rating for CORESTATE. This makes CORESTATE the only property investment manager in Germany with a corporate rating from a leading international rating agency. It was awarded a BB+ rating with a stable outlook for long-term creditworthiness. “This rating gives us unique access to financing opportunities and therefore optimises our capital expenditure. It means that we can intensify our warehousing activities and further accelerate our growth”, says Lars Schnidrig, CFO of CORESTATE. “The Prime Standard listing has a positive effect on the visibility and marketability of the shares. It also reflects our efforts to meet the high transparency requirements of the capital market.”
The Group’s target of distributing 50% of the annual net profit in the form of dividends for the 2017 financial year has been confirmed.
The CORESTATE Capital Group S.A.’s interim report (as of 30 September 2017) published today is available at ir.corestate-capital.com.
1CPF: Coupon Participation Fee of Helvetic Financial Services AG
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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