Corestate Capital cancels the dividend
Corestate Capital Holding SA has downgraded its 2020 financial outlook due to the Covid 19 pandemic and is proposing the cancellation of its fiscal 2019 dividend at the annual general meeting.
In view of a significant shift in investment decisions, transactions and valuation approaches in its core markets and products, Corestate Capital Holding SA considers it no longer likely to achieve its originally planned and published financial targets in fiscal 2020. Revenues would fall short of expectations, particularly in the areas of acquisition and performance-based fees, as well as warehousing and alignment capital, management informs. Previously, sales of 325 to 335 million euros were expected for 2020, Ebitda was to be 180 to 190 million and profit 145 to 155 million; an increase in the payout to 2.60 euros/share (previous year: 2.50 euros) was also planned. As investment decisions and transactions are postponed due to the crisis, Corestate's management now considers these forecasts to be no longer tenable.
Due to the uncertainty about the course of the Covid 19 pandemic, "further strengthening of the liquidity position is currently a priority". For this reason, the company will propose to the Annual General Meeting that no one-time dividend be paid for fiscal 2019. The future payout ratio is also to be adjusted - it is to be at least 30% of earnings per share (EpS) from 2021 and thus for the first time for fiscal 2020. The aim is to reduce net financial debt in the medium term and limit any cyclical or other external risks to the business model. On the debt side, the company considers itself to be positioned for the long term, with the next refinancing requirement at the end of 2022 at the earliest.
The Company intends to publish a new financial outlook for fiscal 2020 as soon as the impact of the Covid-19 pandemic can be reliably assessed and robust planning is possible.
Corestate Capital Holding SA, a Luxembourg-domiciled real estate investment manager with most recently around 28 billion assets under management, recently announced its intention to double its assets under management to around 5 billion euros in Switzerland as well. The company is targeting institutional investors such as pension funds and insurers. (bw)
