Corestate Capital (CCAP) Q1 2024 earnings summary

Executive summary

• Real estate market remains challenging, but stabilization is expected from late 2024; strategic realignment and cost reduction are progressing.

• Focus is on asset and investment management via Hannover Leasing and STAM France; asset monetization and targeted investments continue.

Financial highlights

• Aggregated revenue and gains for Q1 2024 were €7.8m, down from €9.1m in Q1 2023.

• EBITDA for Q1 2024 was €-7.1m, improved from €-15.2m in Q1 2023; adjusted EBITDA was €-6.1m.

• Net profit for Q1 2024 was €-14.5m, compared to €-23.5m in Q1 2023; adjusted net profit was €-12.6m.

• Earnings per share improved to €-0.09 from €-0.14 year-over-year.

• Cash and cash equivalents at March 31, 2024, were €23.1m, down from €42.9m at year-end 2023.

Outlook and guidance

• Management expects market stabilization from end of 2024; asset monetization program is on track but delayed by about six months.

• By year-end 2024, aims to make interest payments in cash and potentially repay part of Senior Notes if liquidity exceeds €25m.

• Asset disposals planned at €65.8m for 2024, with €4.5m realized in Q1 and €13.7m additional inflows by end of May.