Corestate publishes new 2020 forecast and expects significantly improved earnings in the second half of the year

• Financial outlook 2020 with EBITDA of € 55 million und € 80 million
• Stable real estate investment management, strong mezzanine business
• CEO Schnidrig reaffirms clear focus on debt reduction and sustainable institutionalization
• Significant market growth expected for 2021

Luxemburg, 9 September 2020. Corestate Capital Holding S.A. (Corestate), a leading independent real estate investment manager in Europe, today published its financial outlook adjusted for the currently predicted effects of the COVID 19 pandemic. For the financial year 2020, the Company expects aggregated revenues and gains of between € 185 million and € 210 million, EBITDA between € 55 million and € 80 million and adjusted net income of between € 25 million and € 50 million. At the end of August 2020, the company held cash and cash equivalents of around € 63 million.

Lars Schnidrig, CEO Corestate, comments: "We have probably passed the most difficult market phase but the changes in clients' behaviour are likely to last much longer. We have actively addressed this and executed our portfolio adaptation faster than originally planned. Our new business in the Core/Core+ risk segments is developing well. In addition, given the short-term decline in profitability, our top priority is above all to substantially reduce our net debt. We expect to see the first results of this by the end of the year."

The mezzanine financing business for real estate projects at HFS is proving robust and largely resistant to the crisis. Demand and margins, as well as repayment behaviour, are almost at pre-crisis levels. The Company also anticipates that fund volumes and profitability will remain stable in the coming months. In the medium term, the mezzanine business should benefit disproportionately from more restrictive lending by banks. The Company expects to see stable or rising revenues for the real estate investment management segment based on the first half of the year. On the other hand, valuation adjustments caused by COVID-19 in a view (co-)investments in the retail and serviced apartments sectors are burdening the results.

Schnidrig concluded: "We have wasted no time in laying the groundwork for strategically developing our business model and have also launched a comprehensive efficiency program at an operational level that will take effect at the end of the fourth quarter. I am firmly convinced, therefore, that we will emerge stronger from the crisis. We will continue to focus on expanding our institutional and sustainable business. For the coming year, we predict a significant recovery in the market as a whole and anticipate an increase again in revenues from transaction-based fees, warehousing and alignment capital, as well as a very strong performance in our mezzanine business."

Press contact
Jorge Person
T: 136 / M:

Investor relations contact
Mario Groß
T: 106 / M:

About CORESTATE Capital Holding S.A.

CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with more than Euro 28 billion in assets under management. As a fully integrated real estate platform, CORESTATE offers its customers combined expertise in the areas of investment and fund management as well as property 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 additional offices in Frankfurt, London, Paris, Madrid, Zurich and Amsterdam, among others. The company employs around 800 people and is listed in the Prime Standard (SDAX) of the Frankfurt Stock Exchange. Please visit for further information.

Forward-looking statements

This press release may contain certain 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 position, development or performance of the Company and the estimates given here. These factors include those described in published reports. These reports are available on our website . The Company assumes no obligation whatsoever to update these forward-looking statements or to conform them to future events or developments. No inappropriate significance should be attached to forward-looking statements, which apply only to the date of this communication.