CORESTATE continues consistent growth and raises guidance for 2018 – Net debt significantly reduced
- Assets under management over EUR 25 billion
- Aggregated revenues in the first nine months of 2018 at EUR 224.3 million (+169%), adjusted EBITDA at EUR 137.0 million (+249%), adjusted net income at EUR 103.6 million (+285%)
- Annual guidance raised after successful sale of warehousing assets
- Net debt reduced by more than EUR 220 million
- First dividend indication 2019 foresees 25% increase to EUR 2.50
November 14, 2018 – CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor based in Luxembourg, continued its profitable growth in the first nine months of the year. Including the recent acquisition of CRM Students, its assets under management now amount to more than EUR 25 billion.
CORESTATE generated aggregate revenues of EUR 224.3 million in the first nine months of 2018, up from EUR 83.4 million a year ago. Adjusted EBITDA from January to September 2018 was EUR 137.0 million, compared to EUR 39.2 million in the same period of the previous year. Adjusted net profit for the first nine months of 2018 amounted to EUR 103.6 million and nearly quadrupled year-on-year (EUR 26.9 million).
Dr. Michael Bütter, CEO: “We have once again demonstrated our operational reliability by consistently developing our business model. The broad diversification of our revenue structure guarantees a high degree of stability in sales development. At the same time, enforcing attractive market conditions in individual earnings segments in the third quarter enables us to raise our growth and earnings targets for 2018.”
The Group’s net financial debt was reduced by more than EUR 220 million in the third quarter of 2018 while the leverage ratio (net financial debt to adjusted EBITDA) was reduced to 2.3x. This is within the announced target range of 2.0x-3.0x; average interest costs were also significantly reduced.
Lars Schnidrig, CFO: “The entire Group reached very solid financial footing while opening up balance sheet scope for further growth. As in the past, we would like our shareholders to participate significantly in our company’s success and are currently planning a distribution per share of EUR 2.50 for 2018. This represents an increase of 25% over the previous year and a dividend yield of around 6% on the current share price level. We would like to underscore our goal of being an attractive, high- dividend growth share.”
CORESTATE is raising its forecast for 2018 on the basis of the proceeds from the sale of warehousing assets and in light of positive operating business development. The Management Board now expects aggregated revenues of EUR 270 to 280 million (previously: EUR 230 to 240 million), adjusted EBITDA of EUR 160 to 170 million (previously: EUR 155 to 165 million) and adjusted net income of EUR 125 to 135 million (previously: EUR 120 to 130 million).
Dr. Michael Bütter continues: “We are currently marketing numerous new products and funds successfully. The very satisfying pipeline of potential transactions of around EUR 5.8 billion for the current and the following fiscal years also secures our ambitious organic growth course. On the acquisition front, we will continue to operate with a high sense of proportion and a clear focus on synergies. The most recent example is the acquisition of CRM Students, the largest independent operator of student residences in the UK and a perfect addition to our European micro living strategy. We benefit both from extensive experience in development and successful operation of student housing in the growth market of the UK and from a broad international network for tapping new investment projects for our customers.”
Dr. Kai Gregor Klinger
T: +49 69 3535630107 / M: +49 152 22755400
T: +49 69 3535630-108 / M: +49 174 4022348
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with approximately EUR 25bn in assets under management. As a fully integrated real estate platform, CORESTATE offers its clients combined expertise in the areas of investment and fund management as well as real estate management services. The company operates as a respected business partner of institutional clients and wealthy private investors internationally. CORESTATE is headquartered in Luxembourg and has 42 offices including in Frankfurt, London, Madrid, Singapore and Zurich. The company employs over 730 people and is listed in the Prime Standard (SDAX) of the Frankfurt Stock Exchange. Further information is available at www.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.