CORESTATE continued its profitable growth in the first nine months of the year. Including the recent acquisition of CRM Students, its assets under management now amount to more than Euro 25 billion. CORESTATE generated aggregate revenues of Euro 224.3 million in the first nine months of 2018, up from Euro 83.4 million a year ago. Adjusted EBITDA from January to September 2018 was Euro 137.0 million, compared to Euro 39.2 million in the same period of the previous year. Adjusted net profit for the first nine months of 2018 amounted to Euro 103.6 million and nearly quadrupled year-on-year (Euro 26.9 million).
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor based in Luxembourg, continued its profitable growth in the first nine months of the year. Including the recent acquisition of CRM Students, its assets under management now amount to more than Euro 25 billion.
CORESTATE generated aggregate revenues of Euro 224.3 million in the first nine months of 2018, up from Euro 83.4 million a year ago. Adjusted EBITDA from January to September 2018 was Euro 137.0 million, compared to Euro 39.2 million in the same period of the previous year. Adjusted net profit for the first nine months of 2018 amounted to Euro 103.6 million and nearly quadrupled year-on-year (Euro 26.9 million).
Dr. Michael Bütter, CEO: “We have once again demonstrated our operational reliability by consistently developing our business model. The broad diversification of our revenue structure guarantees a high degree of stability in sales development. At the same time, enforcing attractive market conditions in individual earnings segments in the third quarter enables us to raise our growth and earnings targets for 2018.”
The Group’s net financial debt was reduced by more than Euro 220 million in the third quarter of 2018 while the leverage ratio (net financial debt to adjusted EBITDA) was reduced to 2.3x. This is within the announced target range of 2.0x-3.0x; average interest costs were also significantly reduced.
Lars Schnidrig, CFO: “The entire Group reached very solid financial footing while opening up balance sheet scope for further growth. As in the past, we would like our shareholders to participate significantly in our company’s success and are currently planning a distribution per share of Euro 2.50 for 2018. This represents an increase of 25% over the previous year and a dividend yield of around 6% on the current share price level. We would like to underscore our goal of being an attractive, high-dividend growth share.”
CORESTATE is raising its forecast for 2018 on the basis of the proceeds from the sale of warehousing assets and in light of positive operating business development. The Management Board now expects aggregated revenues of Euro 270 to 280 million (previously: Euro 230 to 240 million), adjusted EBITDA of Euro 160 to 170 million (previously: Euro 155 to 165 million) and adjusted net income of Euro 125 to 135 million (previously: Euro 120 to 130 million).
Dr. Michael Bütter continues: “We are currently marketing numerous new products and funds successfully. The very satisfying pipeline of potential transactions of around Euro 5.8 billion for the current and the following fiscal years also secures our ambitious organic growth course. On the acquisition front, we will continue to operate with a high sense of proportion and a clear focus on synergies. The most recent example is the acquisition of CRM Students, the largest independent operator of student residences in the UK and a perfect addition to our European micro living strategy. We benefit both from extensive experience in development and successful operation of student housing in the growth market of the UK and from a broad international network for tapping new investment projects for our customers.”
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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