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PATRIZIA reports solid 9M 2020 results and specifies guidance for FY 2020

  • Operating income of EUR 100.2m (+2.6% y-o-y) already exceeds lower end of FY 2020 guidance
  • Total service fee income increased by 6.2% y-o-y to EUR 248.1m driven by continued organic growth
  • Assets under management increased to EUR 46.2bn (up 4.0% y-t-d)
  • Guidance range for FY 2020 specified to EUR 110.0 – 130.0m based on good visibility into Q4 2020 pipeline

Augsburg, 11 November 2020. PATRIZIA AG, a leading partner for global real assets, generated an operating income of EUR 100.2m in 9M 2020, equivalent to an increase of 2.6% y-o-y. This again proves the resilience and strength of the PATRIZIA business model, even in times of ongoing market uncertainties due to the Covid-19 pandemic.

Total service fee income – which combines management, transaction and performance fees – stood at EUR 248.1m (+6.2%). The increase against the previous year is largely driven by continued growth in assets under management (AUM) and transaction activity for PATRIZIA’s global client base. At the same time net operating costs increased 4.4% y-o-y to EUR 153.7m, well below the growth rate of total service fee income at 6.2% y-o-y.

The continued growth in AUM, which increased 4.0% y-t-d, from EUR 44.5bn to EUR 46.2bn, resulted in increased management fees of EUR 145.0m in 9M 2020, compared to EUR 141.6m in 9M 2019 (+2.4%). Transaction fees increased strongly by 23.7% to EUR 29.1m vs EUR 23.5m in the comparable period last year as transaction activity started to pick up again after the European Covid-19 related lock downs phased out in the third quarter of 2020. Although overall real estate transaction activity is well below last year’s levels, PATRIZIA’s pan-European platform with local people on the ground in all relevant markets helped clients to access numerous attractive investments opportunities. This also led to a stable contribution of performance fees to total service fee income of EUR 74.1m in 9M 2020 (+8.0%).

PATRIZIA has weathered the crisis successfully so far and despite rising market uncertainties has sufficient visibility on the remainder of the year to further specify the guidance range, which was broadened to EUR 100.0 – 140.0m at the beginning of the Covid-19 pandemic. PATRIZIA now expects an operating income in the range of EUR 110.0 – 130.0m for FY 2020.

Wolfgang Egger, CEO of PATRIZIA AG, said: “PATRIZIA delivered on its promise to be a strong and reliable partner for our clients and shareholders during the first phase of the Covid-19 pandemic. We proved that we are able to execute attractive deals, even in the most difficult market environment. Despite the short-term uncertainties, we remain confident. Real asset investment management is a structural growth market and key growth drivers such as demographic change, a lower-for-longer interest rate environment and ongoing market consolidation remain valid in the long-term.”

Karim Bohn, CFO of PATRIZIA AG, said: “Thanks to the resilient business model, we achieved solid results even in times of the Covid-19 pandemic. This, together with our rock-solid balance sheet and our strong cash position proves the relative strength of PATRIZIA. Generating a profit of more than EUR 110.0m in FY 2020 in a challenging economic environment is a clear confirmation of the right strategy focus and the stability of PATRIZIA.”

EUR m

9M 2020

9M 2019

Change

min

max

Management fees

145.0

141.6

2.4%

192.0

198.0

Transaction fees

29.1

23.5

23.7%

36.0

47.0

Performance fees

74.1

68.6

8.0%

80.0

90.0

Total service fee income

248.1

233.7

6.2%

308.0

335.0

Net sales revenues and co-investment income

14.4

19.1

-24.4%

20.0

20.0

Net operating expenses¹

-153.7

-147.2

4.4%

-208.0

-215.0

Depreciation and amortisation, net finance costs and other items

-8.7

-7.9

9.1%

-10.0

-10.0

Operating income

100.2

97.7

2.6%

110.0

130.0

¹ From 2020 onwards excluding non-capitalisable expenses for investments in the future

 

  
    

Guidance range 2020

EUR bn

30.09.2020

31.12.2019

Change

min

max

Assets under management

46.2

44.5

4.0%

46.5

48.0

      
    

Guidance range 2020

EUR bn

9M 2020

9M 2019

Change

min

max

Equity raised

1.3

1.6

-16.1%

  

Transaction volume - signed

2.6

4.6

-42.6%

4.0

5.0

Transaction volume - closed

4.9

4.1

19.2%

  

 

PATRIZIA: A leading partner for global real assets

As a company with operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 36 years. PATRIZIA manages more than EUR 46 billion in assets and employs over 800 professionals at 24 locations worldwide. Through its PATRIZIA Foundation, PATRIZIA is committed to social responsibility. The Foundation has helped over 220,000 children in need worldwide over the last 20 years. You can find further information at www.patrizia.ag

 

Contact:

Martin Praum                                                 

Head of Investor Relations

Phone: +49 (0) 821 5 09 10-402                      

investor.relations(at)patrizia.ag

 

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