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CORESTATE Continues Profitable Growth in Business Year 2016
• Adjusted Net Profit increases by c. 17 % to EUR 19.4 million (2015: EUR 16.6 million), Net Profit as reported grows significantly by c. 54 % to EUR 15.6 million (2015: EUR 10.1 million)
• Earnings per Share increase by c. 31 % to EUR 1.47 / Share
• Attractive dividend policy: proposed distribution of 70 % of Adjusted Net Profit
• Forecast 2017 excluding effects of acquisition of Hannover Leasing confirmed: Increase in Aggregate Revenues and Gains to EUR 75 to 80 million (2016: EUR 59.7 million) and in Net Profit to EUR 30 to 32 million (2016: EUR 15.6 million)
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated real estate investment manager and co-investor based in Luxembourg, has completed another successful year. Compared to the previous year, Aggregate Revenues and Gains increased by c. 27 % to now EUR 59.7 million (2015: EUR 47.1 million) while the Net Profit as reported is up by c. 54 % to EUR 15.6 million (2015: EUR 10.1 million), translating into an increase in Earnings per Share of c. 31 % to EUR 1.47 / Share. Adjusted Net Profit (net of certain one-off items) came in at EUR 19.4 million (2015: EUR 16.6 million). All key financials thus exceeded the previous year’s results considerably, and are slightly above the latest forecast that was raised in December 2016.
Sascha Wilhelm, Chief Executive Officer of CORESTATE: "We have once again demonstrated that the CORESTATE business model works successfully and profitably. We are confident that we will be able to continue our sustainable growth momentum in the next few years, thanks to our continually growing client base. An increasing number of investors – among them large institutional investors such as Bayerische Versorgungskammer – trust in our capabilities as an investment manager and benefit from the very high returns generated with our investment products. In the coming months and years, we will continue to increase our assets under management through longer-term investment products and larger transaction volumes. Naturally, our shareholders will participate to an appropriate extent in our company’s success via our attractive distribution policy. At the Annual General Meeting, we will propose a distribution of 70 % of the Adjusted Net Profit."
Total transaction volume increased by c. 7 % to EUR 920 million, and the volume of newly launched investment products rose by c. 45 % to EUR 735 million driven by strong demand for the company’s highstreet retail and microliving investment products both from institutional as well as semi-institutional/private clients. As a result, Assets under Management increased by c. 35 % to EUR 2.8 billion by year-end 2016. Following the completion of the acquisition of Hannover Leasing Group, this figure is projected to increase to c. EUR 16 billion, and CORESTATE’s revenue structure will be further strengthened by the substantial increase in recurring revenues from long-term management contracts.
For 2017, CORESTATE expects another significant increase in Aggregate Revenues and Gains to EUR 75 to 80 million (2016: EUR 59.7 million) and in Net Profit to EUR 30 to 32 million (2016: 15.6 million). This forecast does not include the effects of the acquisition of 94.9 % of the Hannover Leasing Group, which is expected to be completed in the first half of this business year. Completion of the transaction is still subject to the conclusion of the owner control procedure of the German Federal Financial Supervisory Authority, BaFin.
"With the successful capital increase, the initial public offering and the acquisition of the Hannover Leasing Group, we have reached important milestones in 2016 and charted the course for the company’s successful future development. We plan to, and will, establish CORESTATE as a leading real estate investment manager in Europe in the business year 2017 and beyond," emphasizes Sascha Wilhelm, Chief Executive Officer of CORESTATE.
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