(News Bulletin 247) – The European number one for retirement homes confirms its 2023 objectives after a good first quarter. The real estate partnership concluded with Covéa, Crédit Agricole Assurances and Malakoff Humanis is also welcomed.

The market strongly appreciates Korian’s latest announcements. The number one European retirement home rebounded 9% on the Paris Stock Exchange after confirming its financial outlook for the current year. Investors also welcome Korian’s recent initiatives in the management of its property portfolio.

As far as purely financial data is concerned, Korian has kept its promises. The manager of Ehpad achieved a turnover of 1.2 billion euros in the first quarter, up 11.8%, including 8.8% organic growth, a rate in line with group expectations.

“Reported growth was supported by the acquisition in Spain of Grupo 5, but impacted by the disposals made last year, particularly in Germany. All countries posted dynamic organic growth”, up to 18% in the Benelux indicated Korian.

On the basis of these figures, the group “confirms its 2023 outlook for organic growth in turnover of more than 8%” and stability of its results. These forecasts had been communicated when the 2022 accounts were published, which had been heavily penalized by the market. Last February, Korian had indeed announced a fall in its profits due to “a high level of non-recurring expenses in 2022, linked to network transformation operations in France, Germany and Belgium”.

Since 2019, Korian has been committed to transforming its business model. The French group, present in Germany, Benelux, Spain and Italy as well as in France, has made numerous investments to continue the modernization and diversification of its network and the development of local care pathways.

A reduction in the housing stock

In addition to the confirmation of financial objectives for the current year, the market applauds the continuation of the strategy deployment plan AssetSmart. implemented by Korian since 2016.

The group indicates that it has entered into exclusive negotiations with Covéa, Crédit Agricole Assurances and Malakoff Humanis, with a view to concluding a real estate partnership relating to a portfolio of assets with a total value of approximately 500 million euros.

Concretely, Korian would set up a vehicle specializing in real estate, of which it would open up a minority part to the three aforementioned groups.

“The capital investment of the partners will represent a value of 130 million euros” specifies Korian.

This partnership also sends a positive signal for Orpea, which also intends to sell real estate assets. The title of the competitor of Korian benefits from these announcements and progresses for its part by 11% on the Paris Stock Exchange.

In its strategic plan unveiled last fall, Orpea indicated that it wanted to reduce its holding of real estate assets, going from a holding rate of between 20% and 25% in the medium term against 47% at the end of 2021. Orpea then had identified 1 billion euros of real estate assets ready to be sold “as soon as market conditions allow it” and intends to create in the medium term a dedicated property company in which a minority share of the capital would be open to external investors.

A company with a mission

Orpea thus intends to recover its financial health after having experienced a real stock market ordeal since the publication of the book-investigation The Gravediggers in January 2022. This work had also harmed Korian.

To mark a revival and restore its image, Korian indicated Tuesday evening that it had adopted a status of “company with a mission”. The “European company, head structure of the group” will be called Clariane, to “mark the adoption of this platform as a common point of all the activities and entities of the company”, specified to AFP the director. General Sophie Boissard. Korian will submit this project to its next general meeting scheduled for June 15.