PATRIZIA on track for strong 2019 following robust first quarter performance
Offering compelling products to investors and organic growth remain the focus areas for 2019
- Solid growth in management fees by 24.2% YOY to EUR 46.4m
- Total service fee income of EUR 71.1m, up from EUR 65.1m in Q1 2018
- Operating income of 24.0m in Q1 2019 (versus extraordinarily strong Q1 2018 of EUR 42.7m)
- Full-year guidance of EUR 120.0 – 130.0m operating income confirmed
Augsburg, 16 May 2019. PATRIZIA Immobilien AG, the global partner for pan-European real estate investment, announces that it remains on track for a strong 2019 following the publication of its results for the first three months of 2019.
Commenting on the results, PATRIZIA CFO Karim Bohn said: “While European real estate transaction volumes continue to trend downwards due to a lack of available product, PATRIZIA has had a robust start to the year having further improved the quality of operating income. The key focus for the business for the remainder of the year remains unchanged: to offer attractive real estate investment products to domestic and international investors sourced from our pan-European network of local experts and supporting the Group’s organic growth.”
As at 31 March 2019, PATRIZIA’s assets under management remained virtually stable at EUR 40.9bn compared to 31 December 2018. The Group executed EUR 0.5bn of acquisitions and EUR 0.6bn of disposals during the January-March period.
Operating income for the first three months of 2019 was EUR 24.0m (Q1 2018: EUR 42.7m). The extraordinarily strong operating income performance in the first three months of 2018 was positively impacted by the disposal of remaining principal investments and high income from co-investments booked in the reporting period. Adjusted for these two items operating income grew 18.4% to EUR 21.4m (Q1 2018: EUR 18.1m).
PATRIZIA confirms its guidance for operating income of between EUR 120.0 – 130.0m for the financial year 2019.
PATRIZIA recorded growth across both recurring management fees, up 24.2% to EUR 46.4m (Q1 2018: EUR 37.4m), and transaction fees, up 18.7% to EUR 6.0m (Q1 2018: EUR 5.1m), whilst performance fees were lower at EUR 18.7m in line with management expectations and following an extraordinarily high level of activity in the first three months of 2018. A growing share of total service fee income was derived from recurring management (65.3%) fees.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe for more than 35 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages around EUR 40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.