Corestate has today published its results for the first quarter of 2021. According to the report the aggregated revenues amounted to EUR 37 million, the EBITDA adjusted for M&A-related transaction costs stood at around EUR 1 million and the adjusted net profit at around EUR -9 million. The real estate assets under management (AuM) went up slightly from EUR 24.6 billion to EUR 24.7 billion since the end of 2020. The entire assets under management, including declining non-real estate assets, are at EUR 27.8 billion.
Frankfurt, 19 May 2021. Corestate Capital Group (Corestate), a leading independent real estate investment manager in Europe, has today published its results for the first quarter of 2021. According to the report the aggregated revenues amounted to EUR 37 million, the EBITDA adjusted for M&A-related transaction costs stood at around EUR 1 million and the adjusted net profit at around EUR -9 million. The real estate assets under management (AuM) went up slightly from EUR 24.6 billion to EUR 24.7 billion since the end of 2020. The entire assets under management, including declining non-real estate assets, are at EUR 27.8 billion.
On the one hand, in the real estate equity segment, income from asset management and property management in Core and Core+ have proven themselves to be stable and crisis-resistant over the course of the year. On the other hand, the ongoing COVID-19 measures amplified the usual seasonal trends of the transaction market in the first quarter, resulting in still relatively low revenues from acquisition fees. Given the effects of the pandemic’s second and third waves, value adjustments also had to be made to individual co-investments in commercial real estate and lead to non-reoccurring accounting charges in “Other Segments”.
In contrast, the real estate debt segment recorded a high level of new business with a slight increase in fund volumes. This trend is likely to accelerate in the coming months, taking into consideration the new “Whole Loan” funds product whose marketing has already started. At the same time, the AFS acquisition will be closed as planned in the second quarter after its approval by the regulatory authorities, with corresponding positive growth impulses from a joint real estate financing platform.
CEO René Parmantier comments: “Although we have been riding the brakes due to the subdued investment market in the first half of the year, we have been able to use the time wisely and done our homework on all levels. For example, we strategically rounded off the prospering private debt sector with the AFS acquisition, in order to benefit more from the dynamic market growth, and we restructured and strengthened the entire sales team in real estate equity and furthered the development of our product range in Core and Core+. We are all set to really take off in the summer, at the latest.”
On the financial level, the rapid debt relief is a key issue. At the end of the first quarter, the Group’s net financial debt amounted to EUR 576 million, cash and cash equivalents stood at EUR 63 million. Already in the second quarter, noticeable progress is expected in the reduction of net financial debt on the basis of the implemented, comprehensive catalogue of measures.
Parmantier concludes: “Our core markets are driven by sustainable mega-trends such as the low interest rate environment, demographic changes, urbanisation and digitalisation. We are able to provide the right product answers for this today. In addition, our enhanced market strategy with our clear focus on investors along the entire value chain of a real estate investment, is already showing the first successes with clients. We are only at the beginning of exploiting our synergy potential between real estate debt and real estate equity. This, combined with the comprehensive service of our real estate platform, makes us optimistic about the future.”
Corestate confirms the financial outlook for the entire year with aggregated revenues of between EUR 235 million and EUR 260 million, adjusted EBITDA between EUR 90 million and EUR 115 million, as well as an adjusted net profit between EUR 50 million and EUR 70 million, along with the intent to reduce the ratio of net financial debt to adjusted EBITDA to under 3x by the end of the year.
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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