Corestate with significant increase in sales and profits
Investment manager Corestate significantly increased both sales and earnings in the first half of the year. Assets under management in the core real estate business increased by around 900 million euros.
In the first six months of 2018, Corestate reported aggregate revenues of €125.8 million, up from €48 million a year ago. Adjusted Ebitda tripled in the reporting period, rising from 26 million to 77.9 million. Adjusted net profit amounted to 60.9 million, 167 percent more than in the first half of 2017 (22.8 million).
According to Corestate CEO Dr. Michael Bütter, the subsidiaries Helvetic Financial Services (HFS) and Hanover Leasing delivered "sustainable and stable earnings contributions". According to the company, it has a pipeline of potential transactions with a volume of around 5.7 billion.
For the full year, Corestate expects aggregate revenues to be between 230 and 240 million, adjusted Ebitda to be in the range of 155 to 165 million, and adjusted net income to be between 120 and 130 million.
Michael Bütter said that significant pressures on operating profitability from the additional regulatory burden were being observed in the market, particularly among smaller asset managers, which would result in "interesting strategic acquisition opportunities" for Corestate. The company is also planning a new product line to address changes in urbanization, mobility and demographic change.
