DGAP-News: Corestate Capital Holding S.A.
/ Key word(s): Profit Warning/Dividend
Corestate withdraws financial outlook for 2020 and proposes to the Annual General Meeting that the dividend for financial year 2019 be waived
Luxemburg, 22 April, 2020. Corestate Capital Holding S.A. (Corestate), a leading independent real estate investment manager in Europe, has withdrawn its outlook for financial year 2020 due to the COVID-19 pandemic. Considering the significant shift in investment decisions, transactions and valuation approaches in core markets and products that can be expected, the Company believes it is unlikely that it will achieve its originally planned and published financial targets for this financial year. Revenues are expected to fall short of expectations, particularly in the areas of acquisition and performance-based fees as well as warehousing and alignment capital.
Given the uncertainty surrounding the course of the COVID-19 pandemic, further strengthening of the liquidity position is currently a priority. Corestate will therefore propose to the Annual General Meeting that no dividend be distributed for financial year 2019. The future dividend payout ratio is also being adjusted from 2021 on, and thus for the first time for financial year 2020; it is to be at least 30 percent of earnings per share (EpS). The objective is to reduce the Company's net financial debt in the medium term and mitigate any cyclical and other external risks to the business model. With regard to its debt, Corestate is positioned for the long term, and the next refinancing need will be at the end of 2022 at the earliest.
Lars Schnidrig, CEO Corestate: "The highly dynamic nature of the Corona pandemic is forcing us to adjust our growth-oriented planning for 2020 and to make ourselves crisis-proof at all levels. We have already identified a number of measures with concrete savings potential and are strongly focused on expanding our liquidity base. The one-time waiving of the dividend is sensible from an entrepreneurial standpoint. This will enable us to continue to operate from a position of strength."
Corestate will publish a new financial outlook for the financial year 2020 as soon as the effects of the COVID-19 pandemic can be reliably assessed and resilient planning is possible. The Company believes that all key market drivers of the business model are intact for the medium term, which means Corestate should be able to return starting in 2021 to pre-crisis earnings and profitability figures once the investment market returns to normal.
Nils Hübener, CIO Corestate: "Our clients are currently reluctant to enter into new commitments, however practically all of them are still looking for profitable and sustainable real estate investments, which we offer in a custom-tailored manner. Especially for our core products that are based on megatrends and focus on the residential segment, we expect to see a rapid recovery once the crisis has been overcome, from which we will then benefit disproportionately due to our leading market position. In the coming quarters attractive investment opportunities are also likely to open up, which we intend to exploit in an opportunistic manner."
Lars Schnidrig then concluded: "We are in an excellent strategic position, and I am therefore firmly convinced that Corestate will in 2021 return to its usual strength in terms of operations and earnings following the crisis. In addition, we will again position ourselves as a high-growth dividend stock in the coming year with a more conservative but still very attractive dividend policy."
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and coinvestor with more than EUR 28 billion 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, e.g. in Frankfurt, London, Paris, Madrid, Zurich and Amsterdam. The company employs around 800 people and is listed in the Prime Standard (SDAX) of the Frankfurt Stock Exchange. Further information may be found 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 www.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.
22.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||Corestate Capital Holding S.A.|
|4, Rue Jean Monnet|
|Phone:||+49 69 3535630-107|
|Fax:||+49 69 3535630-29|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||1027835|
|End of News||DGAP News Service|