PATRIZIA reports solid 3M 2020 financial results and broadens its FY 2020 guidance range to reflect Covid-19 uncertainties
Augsburg, 13 May 2020. PATRIZIA AG, the global partner for pan-European real estate investment, recorded an operating income of EUR 24.7m in 3M 2020, an increase of 2.9% from EUR 24.0m in the same period last year. The further increased level of assets under management (AUM) and continued successful real estate transactions for the Group’s global clients in the first three months of the year drove solid y-o-y growth in management and transaction fees. Performance fees remained a stable contributor to overall financial results, only slightly below last year’s level. Total service fee income – which combines management, transaction and performance fees – increased by 13.1% y-o-y, from EUR 71.1m in 3M 2019 to EUR 80.4m in 3M 2020.
PATRIZIA had a solid start into FY 2020 and the company strongly believes it will successfully weather the Covid-19 crisis with its resilient business model, rock-solid balance sheet and strong cash position. Covid-19 has significantly slowed down activity in the real estate investment market but PATRIZIA expects a material recovery of the real estate transaction activity by the end of 9M 2020 at the earliest.
To reflect these continued uncertainties, the company has broadened its guidance range for FY 2020 operating income to a level of EUR 100.0m to 140.0m (from EUR 120.0m to 140.0m previously).
Based on the successful execution of a number of transactions for its global clients in 2020 the company already has sufficient visibility in the operating income development in H1 2020 and is confident to deliver on the broadened guidance range despite the remaining macro-economic uncertainties.
PATRIZIA at the same time reaffirms its proposed shareholder dividend payment of EUR 0.29 per share for FY 2019, an increase of 7.4% to last year’s level, at the virtual AGM scheduled for 1 July 2020. The company will also continue its share buy-back programme that started end of March 2020.