Corestate publishes new financial outlook for the financial year 2020

- Aggregated revenues between € 185m and € 210m

- EBITDA between € 55m and € 80m

- Adjusted net profit between € 25m and € 50m

Luxembourg, 9 September 2020 - Corestate Capital Holding S.A. withdrew its financial outlook for 2020 on 22 April 2020 in light of the impact of the COVID-19 pandemic. The Company has since gained a significantly better overview of the further business trends and has therefore issued a financial outlook for the current financial year that has been adjusted for the effects of the COVID-19 crisis. Accordingly, the Company expects aggregated revenues and gains between € 185m and € 210m, EBITDA between € 55m and € 80m and adjusted net profit between € 25m and € 50m.

The expectations reflect a reduction in transaction volume and a short-term shift in risk profiles with regard to institutional investors' investment preferences. In terms of revenues, the Company anticipates significantly lower income from transaction fees, success-based compensation elements, warehousing and alignment capital, in comparison to the original targets for the year. A view valuation adjustments on (co-)investments in the retail and serviced apartment sector as well as potential one-off expenses for structural adaptations to the new market conditions will also play a role. The mezzanine business of the private debt subsidiary HFS Helvetic Financial Services AG has so far been affected downstream and to only a very minor extent by the current crisis.

At end of August 2020, the Company had a cash position of around € 63m. The Company once again confirmed its ambition to reduce its net debt on short notice.

The new forecast takes into account the negative impact of the COVID-19 pandemic to the extent foreseeable at the present time. However, the business impact of any potential official measures due to the further development of the pandemic, particularly new supra-regional lockdowns, cannot be fully predicted.

Further details on the performance indicators used are available on our website at https://corestate-capital.com/wp-content/uploads/2019/05/KPI-E-eng.pdf.

Notifying person:
Dr. Kai Gregor Klinger
Chief Markets Officer
T: +49 69 3535630-106
[email protected]