Coreo announces consolidated half-year figures (IFRS)

• Despite sales, net rental income remains stable
• Result for the period improved from TEUR -1,652 to TEUR -737
• Completion of corporate financing expected by the end of October

Frankfurt am Main - 6 October 2020 - In the first half of 2020, net rental income at Coreo (ISIN: DE000A0B9VV6) was almost constant - compared with the same period of the previous year - with TEUR 1,060 (previous year: TEUR 1,079) despite the partial sales in Göttingen and Mannheim. Furthermore, there was an additional scheduled increase in vacancies in connection with construction measures within the Göttingen portfolio. The residential portfolio acquired in North Rhine-Westphalia at the end of 2019 only contributed to rental income in the course of the second quarter of 2020.
The result of TEUR 492 from the sale of properties was higher than in the same period of the previous year (TEUR 445). At the reporting date of 30 June 2020, the property portfolio last valued on 31 December 2019 was not revalued during the year for cost reasons. This was also the case in the previous year. The result from the valuation of investment property remains correspondingly unchanged.

The result from operating activities improved by TEUR 207 from TEUR -307 to TEUR -100 compared to the previous period. The reasons for this included a decline in the cost of materials by TEUR 294 to TEUR 875 (previous year TEUR 1,169) and in other operating expenses by TEUR 97 to TEUR 780 (previous year TEUR 877), while staff costs rose from TEUR 368 to TEUR 492. Due to the increase in financial liabilities from TEUR 33,990 to TEUR 45,954 used to finance the expansion of the property portfolio from TEUR 45,093 to TEUR 58,561, financial expenses rose by TEUR 97 to TEUR 1,119 (previous year TEUR 1,022). The result for the period improved by TEUR 915 from TEUR -1,652 to TEUR -737, and thus from EUR -0.10 to EUR -0.04 per share.

The financing of the properties in Mannheim and Bruchsal was prolonged as planned in the first half of 2020 at improved conditions. The Management Board still assumes that it will be able to complete the announced financing in October in order to replace the outstanding bond with warrants and secure the financing of additional acquisitions. In the second half of the year, net cold rents will rise considerably. New rentals in the Hydra portfolio will contribute to this, in addition to the successful acquisition of the residential portfolio in North Rhine-Westphalia. The Managing Board expects the sale of the property in Bielefeld and an additional partial sale in Mannheim to generate revenues of approximately EUR 1 million by the end of the year.

The complete half-year report 2020 will soon be available for download at www.coreo.de.
 

About Coreo AG
Coreo AG, with headquarters in Frankfurt am Main, is a portfolio developer with a focus on German commercial and residential real estate. The real estate portfolio of existing and development properties forms the cornerstone of the company's three pillars of income: income from letting, sales and valuation. Investments are made in real estate with considerable potential for value appreciation with existing development needs, preferably in medium-sized centres and with a volume of EUR 5-20 million, as part of the value-creating growth strategy (sweet spot). The objective is to create an efficiently managed, high-yield real estate portfolio with a volume of EUR 400 - 500 million over the next few years by means of prudent development and the sale of non-strategic objects.


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