CORESTATE posted a strong first quarter of 2018 following its dynamic performance in 2017. For the first three months, aggregate revenues totalled Euro 61.9m, adjusted EBITDA was Euro 38.8m and adjusted net profit was Euro 34.7m. Assets under management were approximately Euro 22bn at the end of March.
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor based in Luxembourg, posted a strong first quarter of 2018 following its dynamic performance in 2017. For the first three months, aggregate revenues totalled Euro 61.9m, adjusted EBITDA was Euro 38.8m and adjusted net profit was Euro 34.7m. Assets under management were approximately Euro 22bn at the end of March.
The company’s new CEO, Dr. Michael Buetter, comments: “In contrast to the usual seasonality of the real estate sector, we are able to report a very solid first quarter in 2018. The main drivers were our attractive investment offering for clients and a stable transaction pipeline.”
Revenue and cost synergies from last year’s strategic acquisitions helped support the quarter’s results. Moreover, the acquisitions broadened our product portfolio, enabling us to take advantage of a wider range of transaction opportunities and tap into a larger Group of investors.
Looking beyond operating earnings, significant progress was also made on the capital market side. In mid-March 2018, CORESTATE was admitted to the SDAX index, supported by the strong share price appreciation in 2017 and the significant increase in the free float to over 63%. In March, the CORESTATE Group also made significant progress on the liabilities side by issuing a Euro 300m senior bond. “Our successful debut bond issue has significantly increased the average maturity of our financing and further reduced the Group’s average cost of debt,” reports CORESTATE’s CFO, Lars Schnidrig. “The bond issue and admission to the SDAX mean that we now have very broad access to the capital markets, giving us additional flexibility for our ambitious organic and inorganic growth plans.”
Dr. Buetter adds: “On the operational side, we enjoy a solid and diversified position thanks to our multi-faceted product portfolio, a selective international expansion strategy and our warehousing activities. Moreover, beyond our core business, we continue to see opportunities for strategic acquisitions, and this could enhance our mid- and longer-term growth profile.
In view of the good first quarter, the company is confirming its financial outlook for the full year 2018: We anticipate aggregate revenues of Euro 230-240m, adjusted EBITDA of Euro 155-165m and adjusted net profit of Euro 120-130m.
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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