CORESTATE has successfully concluded its first financial year after significant acquisitions: All operative and financial targets for 2017 were reached or exceeded. Aggregated revenues – including income from real estate investments – more than tripled to Euro 195m, adjusted earnings before interests, taxes and amortisation (EBIDTA) increased to Euro 123m and adjusted net profit to Euro 93m.
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor based in Luxembourg, has successfully concluded its first financial year after significant acquisitions: All operative and financial targets for 2017 were reached or exceeded. Aggregated revenues – including income from real estate investments – more than tripled to Euro 195m, adjusted earnings before interests, taxes and amortisation (EBIDTA) increased to Euro 123m and adjusted net profit to Euro 93m. The positive development is also reflected by the increase of the time weighted average earnings per share by around +120% to Euro 3.28 per share. The unadjusted EBITDA of the financial year, which includes one-off burdens, mainly from transactions, amounts to Euro 105m, the unadjusted net profit to Euro 56m.
Lars Schnidrig, Chief Financial Officer of CORESTATE: “The good financial result is a testimony to our ability to implement as well as the trust our clients and investors have in CORESTATE’s sustainable business model. In view of our high portion of recurring fee income of around 85% it gives at the same time scope for a positive dividend development. For the financial year 2017, we are thus planning to pay out an overall dividend of around Euro 42m, which corresponds to Euro 2.00 per share.”
The integration of our strategic acquisitions made far quicker progress than planned. Since their consolidation, HFS and ATOS are both delivering high contributions to the results and are generating already initial substantial synergies. At the same time, Hannover Leasing significantly advanced its business. After the impressive profit increase in the third quarter of 2017, Hannover Leasing’s earnings power was strengthened and expanded in the fourth quarter as well, with a profit of Euro 5m (H2 2017 Euro 10m).
“Following the successful and quick integration of our strategic acquisitions, we can tackle selective acquisitions of further asset managers with complementary asset classes in 2018. Reasonable pricing as well as a unique cachet are the most important factors here,” said Thomas Landschreiber, Chief Investment Officer at CORESTATE. “With our multi-boutique platform, we are already realising promising initial synergies in fund investments for our clients and are expecting to expand these significantly in the coming quarters.”
Against this backdrop, CORESTATE is substantiating and raising its forecast for the financial year 2018. It expects aggregated revenues – including income from real estate investments – of between Euro 230m and Euro 240m, adjusted EBITDA of between Euro 155m and 165m and adjusted net profit of between Euro 120m and 130m, this corresponds roughly to an increase of one third compared to the previous year. The forecast is based on the current portfolio and excludes possible further acquisitions.
The aggregated financial results in hand include the pro-rata consolidation of Helvetic Financial Services AG (since 7/2017), Hannover Leasing (since 7/2017) and ATOS (since 11/2017). They are preliminary, unaudited and may include rounding differences.
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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