CORESTATE will significantly expand its product range, particularly in the Micro Living and Private Debt segments, thus taking advantage of the tailwind of an attractive domestic and European market environment. The company announced this today prior to its Annual Annual General Meeting.
Frankfurt, 26 April 2019. CORESTATE Capital Holding S.A. (CORESTATE), a leading European real estate investment manager, will significantly expand its product range, particularly in the Micro Living and Private Debt segments, thus taking advantage of the tailwind of an attractive domestic and European market environment. The company announced this today prior to its Annual Annual General Meeting.
“2018 was marked by numerous transformation processes in order to further develop the company into a leading partner for real estate investors, especially from the institutional sector. In 2019, we will continue to focus on our customers, who will benefit from our product offensive. On the expansion side, we are targeting not only Germany but also the rest of Europe,” said Lars Schnidrig, CEO of CORESTATE.
CORESTATE is participating in the megatrend of urbanisation with its Micro Living and Co Living offerings. The company is the German market leader in Micro Living and plans to consistently expand its European presence this year. New major projects are being launched in Vienna, Frankfurt, Cologne and Düsseldorf, and further attractive building sites have recently been acquired in various European cities; new Co-Living projects are also in the pipeline including Berlin, Amsterdam and Rotterdam.
In addition, CORESTATE’s subsidiary HFS will broaden its Private Debt offering. The growing demand for residential space in German metropolises is already far exceeding supply, both today and in the coming years, and the demand for financing in real estate development is correspondingly high. This growth is reflected in the increase in HFS’s fund volume in the first quarter of 2019 to over Euro 1.25 billion and very stable margins. Lars Schnidrig: “In the mezzanine financing segment, we expect to see a sustained demand trend in the coming years. HFS’s market leadership gives us a decisive competitive advantage – especially when it comes to further diversifying our range of services.”
CORESTATE will publish its first Sustainability Report in the second half of 2019. The topics of ESG and transparency already play a key role for our stakeholders and investors and are a prerequisite for addressing many institutional clients. In the future, it will therefore be above all those asset managers who meet their social responsibility and can clearly document their ESG requirements who will be successful. A central element of CORESTATE’s sustainability initiative is its commitment to the United Nations Principles for Responsible Investment, or UNPRI for short.
A record distribution of nearly Euro 53 million will be proposed to today’s Annual Annual General Meeting; at 2.50 euros per share, this corresponds to a current dividend yield of well over 6 percent. Lars Schnidrig: “Our dividend policy envisages that we will continue to pay out around half of the earnings per share in the future and that our shareholders will thus participate comprehensively in the success of the company.”
The agenda of the Annual Annual General Meeting also includes the addition of a fourth member to the Supervisory Board. The proposed candidate is Jonathan Lurie, who brings over 20 years of experience with leading companies in the real estate industry in all major European regions and asset classes. In March, CORESTATE had already aligned its management structure for the long term with the appointment of Lars Schnidrig as CEO and the extension of Thomas Landschreiber’s management contract as CIO.
In view of this solid positioning and the sustained strength of its operating business, the company confirms its financial outlook for 2019. CORESTATE expects aggregated revenues of between Euro 285 million and Euro 295 million, EBITDA of between Euro 165 million and Euro 175 million and adjusted net profit of between Euro 130 million and Euro 140 million. The Group’s core business, Real Estate Investment Management, is expected to grow by more than 30 percent in the current financial year and thus increase the quality and sustainability of the revenue structure.
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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