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CORESTATE confirms annual net profit after taxes of EUR 85 to 90 million and ends the first half of 2017 with significant growth
- Aggregate Revenues and Gains doubled and Net Profit increased more than four-fold
- Assets under management increased by 26%
- Integration of Helvetic Financial Services AG and restructuring of Hannover Leasing on
- Board confirms positive guidance for full year 2017
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor with headquarters in Luxembourg, further accelerated its profitable growth in the first half of 2017. All numbers reflect the organic growth of CORESTATE since the half-year numbers do not yet capture the effects of the acquisitions of Hannover Leasing and Helvetic Financial Services AG (HFS). Aggregate Revenues and Gains amounted to EUR 48.6 million, up 116% compared to the first half of 2016. Net Profit adjusted by one-off effects in connection with corporate actions and M&A transactions increased more than four-fold to EUR 22.8 million (first half of 2016: EUR 5.1 million).
Given the positive development over the first six months and the strong outlook, the company confirmed the guidance for the ongoing financial year it had last raised in July 2017. Aggregate Revenues and Gains will amount to between EUR 170 and 180 million, net profit before one-off effects is anticipated at between EUR 85 and 90 million, which corresponds to EBITDA before one-off effects of between EUR 115 and 120 million.
The integration of HFS and the ongoing restructuring of Hannover Leasing are on schedule. Over the first six months of this year, CORESTATE significantly increased its cooperation with pre-eminent institutional investors. Overall, CORESTATE completed real estate transactions totalling EUR 1.4 billion over the first half of 2017.
With EUR 356 million, the equity raised from private and institutional investors are also substantially higher year on year in the first half of 2017. Assets under management at mid-year 2017 were up 26% compared to the end of 2016. Together with the assets of Hannover Leasing and HFS, assets under management as of the end of July 2017 amounted to about EUR 20 billion.
CORESTATE’s positive development is also reflected in the capital market: the price of the CORESTATE share more than doubled over the first six months, significantly outperforming the real estate sub-sectors of the relevant SDAX and DAX benchmarks. In addition, CORESTATE placed close to one million new shares with domestic and international institutional investors in February 2017 in the context of a capital increase that was several times oversubscribed. Together with the new shares issued at the beginning of July during another - this time non-cash - capital increase in the context of the HFS acquisition, CORESTATE’s market capitalisation amounted to significantly in excess of EUR one billion (based on the closing price on 31 July 2017). As a result, CORESTATE is now one of the biggest listed real estate investment managers in the German-speaking region.
“Our organic growth and the acquisitions enable us to exploit additional earnings potential. We expect our investment volume to increase further particularly on the back of new investment product launches. CORESTATE will also participate in the increasing consolidation activities in the market via selective inorganic growth,” explains Sascha Wilhelm, CEO of CORESTATE Group. “Overall, CORESTATE‘s earnings base will continue to broaden and stabilise. Particularly the contribution of recurring revenues to total income will continue to improve significantly. We will bring additional highly qualified colleagues into the team to accommodate this growth and future consolidations.”
The interim financial statements of CORESTATE Capital Holding S.A. as of 30 June 2017 that have been published today are available in the Investor Relations section on ir.corestate-capital.com.
This press release may contain forward-looking statements based on current assumptions and forecasts made by our management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of our company and the estimates given here. These factors include those discussed in our public reports, which are available on our website at [ir.corestate-capital.com]. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
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