DGAP-News: Coreo publishes H1 2018 results: Continued dynamic growth and positive outlook

Coreo publishes H1 2018 results: Continued dynamic growth and positive outlook

- Lettable space grew by more than 100 % in H1 to more than 68,000 sqm

- Negative H1 result -1.1 million Euro due to interest paid and due diligence costs
(HGB)

- Positive outlook for the second half of the year

Frankfurt am Main, Germany - 19 September 2018 - Coreo AG (ISIN: DE000A0B9VV6) continued its dynamic growth course in the first half of 2018. As a result of two acquisitions, since the end of last year, the lettable space has grown from nearly 33,000 sqm to more than 68,000 sqm, an increase of approx. 106 %. In April, Coreo acquired an attractive housing portfolio in and around Göttingen, Germany. With the acquisition of the "Hydra-portfolio" in May, the company owns now twelve office, residential and commercial buildings in attractive downtown locations across Germany such as Frankfurt, Darmstadt and Gießen.

In the interim financial statements prepared in accordance with German commercial law (HGB) as at 30/06/2018, the first down payment for the Göttingen portfolio in the amount of EUR 0.8 million results in a corresponding increase in the item "Shares in related companies". However, the "Hydra-portfolio" has not yet been taken into consideration as the economic and legal transfer took place on September 1^st.

To date, the main part of the real estate acquisitions has been financed by the bond with warrants issued at the beginning of 2018. As expected, the resulting interest rates had a significant influence on the half-year result calculated in accordance with the German Commercial Code (HGB). For the first six months of the current year it amounts to EUR -1.1 million, following a profit of EUR 0.4 million in the same period of the previous year.

CEO Marin Marinov is optimistic about the second half of the year: "With the first sales of non core real estate out of the 'Hydra-portfolio', which are planned to take place before the end of the year, we will not only be able to proof the value of our properties. We also expect full year results to be clearly positive. Thereby we are not losing sight of our strategic goal to continue to grow dynamically. In addition, the initial incorporation of the existing real estate at fair value in the IFRS financial statements will contribute to a significant increase in earnings and NAV per share."

The complete semi-annual report for 2018 is now available for download from www.coreo.de.
 

About Coreo AG
Coreo AG, which has its registered office in Frankfurt am Main, is a dynamically growing real estate company with a focus on German commercial and residential properties. Investments are made in real estate with considerable potential for appreciation in the event of existing development needs. The goal is to build up an efficiently managed, high-yielding real estate portfolio through prudent development and the sale of non-strategic properties.