CORESTATE announced today its results for the first nine months of 2021. Aggregated revenue and gains climbed by 18.9% in the reporting period to € 169.6m (previous year: € 142.7m). Adjusted EBITDA increased from € 46.1m in the previous year to € 61.0m, an improvement of 32.4%. Adjusted net profit stood at € 23.9m in the reporting period, up from € 20.8m in the previous year. The real estate assets under management (AuM) amounted to € 24.0bn at the end of September 2021. The entire AuM, including declining non-real estate assets, are at € 27.1bn.
Frankfurt, 10 November 2021. CORESTATE Capital Group (CORESTATE), a leading independent real estate investment manager in Europe, announced today its results for the first nine months of 2021. Aggregated revenue and gains climbed by 18.9% in the reporting period to € 169.6m (previous year: € 142.7m). Adjusted EBITDA increased from € 46.1m in the previous year to € 61.0m, an improvement of 32.4%. Adjusted net profit stood at € 23.9m in the reporting period, up from € 20.8m in the previous year. The real estate assets under management (AuM) amounted to € 24.0bn at the end of September 2021. The entire AuM, including declining non-real estate assets, are at € 27.1bn.
Income in the Real Estate Equity segment continued to develop positively in the third quarter, standing on a par with the previous year (€ 72.4m) at € 72.0m in the first nine months of 2021. Rising income from real estate transactions in particular made up for the declining income from micro-living developments business. The Real Estate Debt segment successfully increased its aggregated revenue and gains by 37.5% to € 91.8m in the reporting period (previous year: € 66.8m). The main drivers were the mezzanine business of CORESTATE subsidiary Helvetic Financial Services (HFS) and CORESTATE Bank, consolidated since May. In terms of costs, one-off charges of € 8.0m were incurred in relation to the AFS acquisition (now CORESTATE Bank) in the first three quarters of 2021. As announced, these transaction costs and other one-off expenses will be adjusted in earnings. The Group’s net financial debt amounted to € 564.4m at the end of September (31.12.2020: € 517.0m), while cash and cash equivalents stood at € 47.0m, down from € 68.2m at the end of 2020.
“Our strategic realignment at the beginning of the year, with a fully integrated platform for real estate equity and debt products, is already paying off,” said René Parmantier, CEO of CORESTATE Capital Group. “Our clients are benefiting from our unique products and services along the entire real estate value chain. We are ideally positioned to benefit from the market recovery that has already begun and are optimistic when it comes to dynamic year-end business in 2021 and to 2022. Our clients are seeing sales rising on the markets and are keen not to miss out – they want to invest.”
“The nine-month figures of all our segments are in line with our forecasts,” added Udo Giegerich, CFO of CORESTATE Capital Group. “Following our strong second quarter, we continued to demonstrate in the summer months that we are on track to achieve our full-year revenue and earnings targets. The reinvigorated transaction market is playing in our favour. Over the coming months, we will be focusing on the systematic reduction of our financial debt by placing unnecessary balance sheet assets. After a slight shift between the third and fourth quarters, we are continuing to work hard on our core task of reducing our financial leverage by around 3x by the end of the year.”
Long-term market drivers in the real estate sector are proving to be extremely robust and sustainable, especially when paired with increasing investor demand. The market trend for real estate investments is set to remain positive for the fourth quarter. HFS’ new Stratos VI senior fund is performing extremely well. It is financing high-return development and existing properties from the residential and commercial real estate segment in the DACH region (Germany, Austria and Switzerland), thereby supporting the operating business development of the Group. Against this backdrop, the company has confirmed its full-year financial outlook for 2021 of consolidated aggregated revenue and gains of between € 235m and € 260m, adjusted EBITDA of between € 90m and € 115m and adjusted net profit of between € 50m and € 75m.
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 830 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 and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 11 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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