CORESTATE today published its financial outlook adjusted for the currently predicted effects of the COVID 19 pandemic. For the financial year 2020, the Company expects aggregated revenues and gains of between € 185 million and € 210 million, EBITDA between € 55 million and € 80 million and adjusted net income of between € 25 million and € 50 million. At the end of August 2020, the company held cash and cash equivalents of around € 63 million.
Luxemburg, 9 September 2020. Corestate Capital Holding S.A. (Corestate), a leading independent real estate investment manager in Europe, today published its financial outlook adjusted for the currently predicted effects of the COVID 19 pandemic. For the financial year 2020, the Company expects aggregated revenues and gains of between € 185 million and € 210 million, EBITDA between € 55 million and € 80 million and adjusted net income of between € 25 million and € 50 million. At the end of August 2020, the company held cash and cash equivalents of around € 63 million.
Lars Schnidrig, CEO Corestate, comments: “We have probably passed the most difficult market phase but the changes in clients’ behaviour are likely to last much longer. We have actively addressed this and executed our portfolio adaptation faster than originally planned. Our new business in the Core/Core+ risk segments is developing well. In addition, given the short-term decline in profitability, our top priority is above all to substantially reduce our net debt. We expect to see the first results of this by the end of the year.”
The mezzanine financing business for real estate projects at HFS is proving robust and largely resistant to the crisis. Demand and margins, as well as repayment behaviour, are almost at pre-crisis levels. The Company also anticipates that fund volumes and profitability will remain stable in the coming months. In the medium term, the mezzanine business should benefit disproportionately from more restrictive lending by banks. The Company expects to see stable or rising revenues for the real estate investment management segment based on the first half of the year. On the other hand, valuation adjustments caused by COVID-19 in a view (co-)investments in the retail and serviced apartments sectors are burdening the results.
Schnidrig concluded: “We have wasted no time in laying the groundwork for strategically developing our business model, and have also launched a comprehensive efficiency program at an operational level that will take effect at the end of the fourth quarter. I am firmly convinced, therefore, that we will emerge stronger from the crisis. We will continue to focus on expanding our institutional and sustainable business. For the coming year, we predict a significant recovery in the market as a whole, and anticipate an increase again in revenues from transaction-based fees, warehousing and alignment capital, as well as a very strong performance in our mezzanine business.”
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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