CORESTATE according to its preliminary figures for fiscal year 2018, partly significantly exceeded the forecast it raised in November. Accordingly, aggregated revenues increased from Euro 195 million to Euro 292 million. Adjusted EBITDA rose to Euro 184 million compared to Euro 123 million in the previous year, while adjusted net profit increased to Euro 135 million (previous year: Euro 93 million). Assets under management (AuM) rose by more than 15% in excess of Euro 25 billion. At the same time, the core business, Real Estate AuMs, grew organically by more than 9%. CORESTATE has thus very successfully completed its first full fiscal year following the major acquisitions Hannover Leasing, HFS and ATOS.
CORESTATE Capital Holding S.A. (CORESTATE), a leading European real estate investment manager, according to its preliminary figures for fiscal year 2018, partly significantly exceeded the forecast it raised in November. Accordingly, aggregated revenues increased from Euro 195 million to Euro 292 million. Adjusted EBITDA rose to Euro 184 million compared to Euro 123 million in the previous year, while adjusted net profit increased to Euro 135 million (previous year: Euro 93 million). Assets under management (AuM) rose by more than 15% in excess of Euro 25 billion. At the same time, the core business, Real Estate AuMs, grew organically by more than 9%. CORESTATE has thus very successfully completed its first full fiscal year following the major acquisitions Hannover Leasing, HFS and ATOS.
“We have grown organically and through acquisitions into a new dimension. In just two years, we have increased our assets under management by more than seven times and significantly enhanced our profitability. Our subsidiary Hannover Leasing has had one of the best fiscal years in its almost 40-year company history. Together we are creating significant added value for our customers on our new platform. At the same time, we have reduced our net debt as planned and still have sufficient headroom to grow profitably,” said Lars Schnidrig, CFO and interim CEO of CORESTATE.
The sharp increase in consolidated net income also boosted earnings per share by more than 50% to Euro 4.93. Reported EBITDA amounted to Euro 174 million and reported net profit to Euro 104 million. At the end of 2018, net financial debt amounted to Euro 389 million, the financial leverage (net debt to adjusted EBITDA) was 2.1x and thus at the lower end of the target corridor of 2.0x to 3.0x. Twelve months ago, this figure was still above 4.0x.
“Profits will be distributed to our shareholders, and our dividend policy is very attractive. We are currently planning a distribution of Euro 2.50 per share for 2018 and thus a return of about 8 percent at the current share price level. On the basis of Euro 4.93 earnings per share, our payout ratio would be around 50 percent – a good point of reference for future years as well,” said Lars Schnidrig.
For 2019, CORESTATE expects aggregated revenues in the range of Euro 285 million to Euro 295 million, an EBITDA of between Euro 165 million and Euro 175 million and an adjusted net profit of between Euro 130 million and Euro 140 million. Organic growth in the core business together with interesting acquisitions, in particular in Real Estate Investment Management, will enable an improvement of the quality and sustainability of the income streams.
“We are focusing early on new trends in the European real estate market – such as in micro living. Most recently, we acquired the largest independent student housing operator in the UK and thus gained enormous implementation expertise and project experience for our Europe-wide micro living activities. We offer our clients high-quality investment opportunities also beyond established markets. We will broaden our choice of products in private debt and thus further expand our existing Mezzanine business. Given our revenues mostly come from German speaking areas, we have enormous growth potentials in Europe and beyond,” added Thomas Landschreiber, co-founder and Chief Investment Officer of CORESTATE.
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
This press release may contain forward-looking statements. Forward-looking statements are all statements that are not historical facts and events. This applies wherever there is information about future financial profitability, plans and expectations with regard to the company, growth and profitability as well as economic conditions to which the company is exposed. Statements using the words „should“, „may“, „will“, „believes“, „expects“, „assumes“, „assumes“, „estimates“, „plans“, „believes“, „to the knowledge“, „estimates“ or similar expressions indicate such forward-looking statements. Forward-looking statements are based on current estimates and assumptions made by management to the best of their knowledge. Such forward-looking statements are based on assumptions and factors and are subject to uncertainties, the non-occurrence or occurrence of which may cause the actual circumstances, including the Company’s net assets, financial position and results of operations, to differ materially from or be more negative than those expressly or implicitly assumed or described in these statements. Certain forward-looking statements, while appropriate at this time, may prove to be incorrect. Various known and unknown risks, uncertainties and other factors could cause the forward-looking statements, actual results, financial position, development or performance of the Company to be materially different from those expressed or implied by such statements. Therefore, the Company and its management cannot be held responsible for the actual occurrence of the forecasted developments. It should be noted that the Company assumes no obligation to update such forward-looking statements or to conform them to future events or developments.
