Coreo AG publishes consolidated figures (IFRS) for 2020

• Growth of real estate portfolio by 41% or TEUR 18,986 to TEUR 64,079 (previous year: TEUR 45,093)
• Rental income increased by 20% from TEUR 2,919 to TEUR 3,515
• Consolidated net result at TEUR -2,437 after TEUR -862

Frankfurt am Main - 21 April 2021 - In 2020, the company increased its real estate portfolio by 42% from TEUR 45,093 to TEUR 64,079. Coreo AG's 10.1% share in the St. Martin Tower office property in Frankfurt is still reported under financial assets rather than under real estate. Compared with the previous year's figure of TEUR 38,502, the share of investment property increased by TEUR 15,757, or 41%, to TEUR 54,259. This was due not only to the transfer of the apartments in Wuppertal and Bielefeld, but also to the valuation result of TEUR 847 (previous year: TEUR 3,060).
There was a significant increase in real estate inventories of TEUR 8,208 to TEUR 8,918 (previous year TEUR 709). This was caused by the acquisition of the two development sites in Wiesbaden and the takeover of the residential units in Gelsenkirchen and Lünen, which are scheduled to be privatised by 2023. The closing of the sold part of the real estate portfolio in Göttingen is reflected in the decrease in the item of assets held for sale from TEUR 5,881 to TEUR 902.
In total, it was not possible to achieve the acquisition target in the past year. This was mainly due to the pandemic-related reassessment of the sustainable letting risks in combination with the planned acquisition of a large-volume property and the corporate financing of EUR 23 million, which was only concluded in December. Furthermore, there was an unexpected exercise of the right of first refusal for the property in Hassloch, which was acquired at the end of September 2020.

Rental income increased from TEUR 2,919 to TEUR 3,515 compared to the previous year. The result from the sale of real estate declined from TEUR 1,434 to TEUR 488 with significantly increased revenues from the sale of real estate (TEUR 6,092 compared to TEUR 2,983 in the previous year). The realised sales margin is, however, significantly lower, as the income from the partial sale of the Göttingen portfolio was already recognised in the previous year. Compared to the previous year, the reduced acquisition volume had a noticeable effect on the valuation result, which fell from TEUR 3,060 to TEUR 847.

Therefore, the result for the period fell from TEUR -862 to TEUR -2,437, with an increase in consolidated turnover from TEUR 5,902 to TEUR 9,607. Expenses for personnel and materials as well as other operating expenses rose only slightly from TEUR 4,946 to TEUR 5,066 compared to the previous year (and are proof of the consistent cost management). Due to the significant increase in financing volume (TEUR 51,620 compared to TEUR 33,990 in the previous year), interest expenses increased from TEUR 2,181 to TEUR 2,316 compared to the previous year.

The rise in the MagForce share price was reflected in the significantly improved 'Other result' compared to the previous year. That result of TEUR 1,499 was TEUR 2,616 higher than the previous year's figure of TEUR -1,117. The Net Asset Value (NAV) as of 31 December 2020 is EUR 1.73 per share (previous year EUR 1.88), based on the 10% increase in share capital and considering the long-term deferred tax liabilities.

The Board of Managing Directors expects a significant increase in the acquisition volume for the current year. For this purpose, Coreo still has EUR 7 million available from the corporate financing concluded in December and thus a financeable acquisition volume of approximately EUR 25 million. An additional EUR 15 million of this amount was used for the early redemption of the outstanding option bond and will result in a noticeable reduction in current interest expenses. At least a moderate increase in rental income is expected at the same time, depending on the transfer of benefits and encumbrances of newly acquired properties.

The consolidated financial statements (IFRS) and the separate financial statements of Coreo AG prepared in accordance with the German Commercial Code (HGB) will be published by the company in good time before the Annual General Meeting and will be available for download at www.coreo.de under "Investors".
 

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.