Corestate Capital Holding S.A.: CORESTATE achieves a positive turnaround of Hannover Leasing and raises forecast
DGAP-News: Corestate Capital Holding S.A.: CORESTATE achieves a positive turnaround of Hannover Leasing and raises forecast
DGAP-News: Corestate Capital Holding S.A. / Key word(s): 9-month figures
16.11.2017 / 07:30
The issuer is solely responsible for the content of this announcement.
CORESTATE achieves a positive turnaround of Hannover Leasing and raises forecast
– Stable growth in the first nine months of 2017
– Guidance increased
– Hannover Leasing turnaround sees highest quarterly earnings in ten years
– Corporate rating and Prime Standard share listing strengthen positioning on the capital market
– 2017 dividends confirmed with 50% pay-out ratio
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor headquartered in Luxembourg, continues on its course of dynamic and profitable growth. After nine months, its aggregate revenues amounted to EUR 83.4 million, more than 111% higher than for the prior-year period (EUR 39.6 million). The adjusted net profit for the year grew by 121% to EUR 26.9 million (prior-year period: EUR 12.1 million). Including the CPF1, that has been collected in the reporting period and was recognized as revenues in the income statement end of October, the aggregate revenues amounted to EUR 123.7 million and adjusted net profit for the year to EUR 62.3 million. This corresponds to 71% of the guidance 2017.
The past few months have confirmed expectations with regard to both the positive development of the Group’s core business and the growth stimulated by the newly acquired companies Helvetic Financial Services AG (HFS) and ATOS Group (ATOS), which has led the Management Board to affirm its forecast for the entire current fiscal year. Aggregate revenues will lie between at least EUR 170 million and EUR 180 million, and net income before one-off items between at least EUR 85 million and EUR 90 million. Assets under management (AuM) will total EUR 22 billion by year end 2017.
For 2018, CORESTATE is predicted to continue this positive development. Due to cost synergies within the Group, the Management Board has raised its forecast for the 2018 financial year. The company expects adjusted net profit of EUR 120 million, an adjusted EBITDA of EUR 155 million and total revenues of more than EUR 230 million. A high proportion of the Group’s earnings, around 85%, are recurring.
Through integration and restructuring measures, the profitability of Hannover Leasing (HL) has increased from a EUR 17.8 million loss to a EUR 4.6 million profit in the third quarter of 2017. This successful turnaround has been primarily due to cost reduction and focusing on new business, and has resulted in the highest quarterly earnings for HL in almost ten years. Integration of the newly acquired asset managers HFS and ATOS has begun and will be reflected in the 2018 results. Sascha Wilhelm, CEO of CORESTATE: “For us, Hannover Leasing is the litmus test for successful restructuring and integration. We treat these areas with the same professionalism with which we manage the portfolios of our investors.”
Through this, CORESTATE has further strengthened its position in the capital market. The CORESTATE share has been listed in the Prime Standard of the German Stock Exchange since 2 November 2017. On 6 November, Standard and Poor’s published its first long-term corporate rating for CORESTATE. This makes CORESTATE the only property investment manager in Germany with a corporate rating from a leading international rating agency. It was awarded a BB+ rating with a stable outlook for long-term creditworthiness. “This rating gives us unique access to financing opportunities and therefore optimises our capital expenditure. It means that we can intensify our warehousing activities and further accelerate our growth”, says Lars Schnidrig, CFO of CORESTATE. “The Prime Standard listing has a positive effect on the visibility and marketability of the shares. It also reflects our efforts to meet the high transparency requirements of the capital market.”
The Group’s target of distributing 50% of the annual net profit in the form of dividends for the 2017 financial year has been confirmed.
The CORESTATE Capital Group S.A.’s interim report (as of 30 September 2017) published today is available at ir.corestate-capital.com.
1CPF: Coupon Participation Fee of Helvetic Financial Services AG
Phone: +49 69 3535630-106 / Cell phone: +49 162 2087670
Phone: +49 69 264867715 / Cell phone: +49 176 10430063
About CORESTATE Capital Holding S.A.
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with approximately EUR 22bn* 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 41 offices including in Frankfurt, London, Madrid, Singapore and Zurich. The company employs over 530 people and is listed in the regulated market (Prime Standard) of the Frankfurt Stock Exchange.
Further information is available at www.corestate-capital.com.
*at year end 2017
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.