CORESTATE today announced solid figures for the first nine months of 2019. Real Estate Assets under Management (AuM) grew organically by around 7.2% and reached the record mark of EUR 22.1 billion. Including the non-real-estate portfolio, the entire AuM increased to EUR 26.4 billion.
Frankfurt, 12 November 2019 – CORESTATE Capital Holding S.A. (CORESTATE), a leading European real estate investment manager, today announced solid figures for the first nine months of 2019. Real Estate Assets under Management (AuM) grew organically by around 7.2% and reached the record mark of EUR 22.1 billion. Including the non-real-estate portfolio, the entire AuM increased to EUR 26.4 billion.
Lars Schnidrig, CEO of CORESTATE Capital Group: “Currently, we are harvesting the initial important fruits from our clients and product initiative launched in the past quarters. In the second half of 2019, we already onboarded several large new institutional clients, including a leading US-based multi asset manager, one of the world’s biggest asset managers based in Europe as well as a leading German life insurer. We will continue on this growth path also in the upcoming quarters.”
In the first nine months of 2019, the company generated aggregated revenues and gains of EUR 185.6 million (previous year’s figure: EUR 224.3 million), EBITDA of EUR 100.1 million (EUR 128.4 million) and adjusted net profit of EUR 67.6 million (EUR 103.6 million). Net profit stood at EUR 51.3 million (EUR 80.4 million). These figures reflect the typical seasonality of CORESTATE’s transaction business with a focus on the year’s last three months. The previous year’s period included significant one-time effects from the sale of the three trophy assets.
In the third quarter of 2019, CORESTATE placed several assets that were temporarily on its own balance sheet with clients and thus reduced leverage, the ratio of net financial liabilities to the full-year EBITDA guidance, as planned to around 2.8x. This figure will be even lower by the end of the year. The rating agency S&P yesterday increased the outlook by one notch from ’stable’ to ’positive’ and confirmed its corporate rating `BB+’. Lars Schnidrig: “S&P acknowledges the successful integration of our acquisitions and the upgrade of our governance and operational infrastructure. The rating agency not only appreciates our standing as one of the leading players in Europe´s fragmented real estate asset management market, but also our strong balance sheet and our operational achievements.”
HFS, the company’s real estate financing subsidiary, showed a strong contribution to CORESTATE’s success as it benefited from ongoing attractive market conditions. Due to visible new business in the upcoming quarters, the leading mezzanine provider in German-speaking Europe expects a slight upward trend in fund volume and stable margins.
CORESTATE Capital Group´s Co-Founder and CIO Thomas Landschreiber: “Our product placements are running under full steam. We expect more than 20 relevant transactions for our clients, including respective fees, by the end of the year. Thus, we expect to have a strong fourth quarter.” Against this backdrop, the company fully confirms its financial forecast for the full year 2019 of aggregated revenues and gains of EUR 285 million to EUR 295 million, EBITDA of EUR 165 million to EUR 175 million and adjusted net profit of EUR 130 million to EUR 140 million as well as the policy of distributing around half of the earnings per share to shareholders.
“We offer real estate solution approaches for large societal challenges such as urbanization, demographic change and the ecological footprint. Driven by this, we have developed a prospering range of products, for example in the micro living sector, in private debt and urban district developments. This expansion into Europe is accompanied by a growing scarcity of alternative investment opportunities and rising regulatory pressure for investors – and we deliver the tailor-made answers to this. That is why we feel well prepared for further dynamic growth and consider an increase in our assets under management to more than EUR 50 billion within the next five years to be realistic,” concluded CEO Lars Schnidrig.
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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