Corestate boosts AUM by almost €1b in H1 on strong earnings

Frankfurt-listed Corestate Capital boosted its real estate assets under management by €900 mln to €17.1 bn year-on-year in the first six months of the year as revenue and earnings soared.

Including non-real estate funds which are being run down, total assets under management came to €22 bn, the company said. Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) doubled over the first half to €77.7 mln following a 152% increase in revenue to €125.8 mln. Adjusted net profit came to €60.9 mln, a rise of 167%.

'We are pleased with the very good business development throughout the Group, especially at our subsidiaries Helvetic Financial Services (HFS) and Hannover Leasing, which will make sustainable and stable contributions to earnings following their acquisitions in 2017 with their specialized business models,' CEO Michael Bütter said in the earnings announcement. 

'The solid results in the first half of the year impressively document our business model's sustainable revenue structures. We are well on track to meeting our full-year financial outlook and will also achieve further improvement in the debt ratio on the balance sheet side by the end of the year,' CFO Lars Schnidrig added.

Against this backdrop, the company confirmed its financial forecast for full-year 2018 with aggregated revenues of €230-240 mln, adjusted EBITDA of €155-165 mln and adjusted net profit of €120-130 mln.

Over the past 24 months, Corestate has expanded its product range to attract new investor groups, Bütter said. 'Additional regulatory expenses burden the operating profitability of smaller asset managers, which opens up strategic acquisition opportunities for us. We will also use our extensive experience in micro living and serviced apartments for a new product line addressing decisive changes in urbanization, mobility and demographic change. We are internationalising both on the product side and on the operational level.'

Corestate has a 'comfortable' pipeline of potential transactions of around €5.7 bn, he added. 'Our strong product pipeline in conjunction with our broad customer base gives us a very positive outlook for the second half of the year.'

Corestate Capital has witnessed explosive growth since its IPO on the Frankfurt stock exchange in 2016 and has taken huge strides in its mission to become a fully integrated investment manager and co-investor. In an interview earlier this year with PropertyEU, Bütter said the company continued to eye takeover candidates following the recent acquisitions of HFS, HL and Atos.

‘There are at least 90 asset managers across Europe that have less than €10 bn under management,' he said. 'We believe we can play an important role in this consolidation process and we expect to make more acquisitions in the upcoming years.’

Following the recent acquisitions of Hannover Leasing, Helvetic Financial Services and Atos Group, it now has €22 bn of AUM compared to just €108 mln in 2015.


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