PATRIZIA with strong first-half results and increase in 2018 guidance
Strong results from profitable integration of acquisitions into efficient pan-European investment management platform.
- Operating income up 106.6% to EUR 72.5m
- Total service fee income significantly higher than 2017 (EUR 135.8m vs EUR 88.1m)
- Guidance for full-year operating income increased to EUR 100-110m
Augsburg, 7 August 2018. PATRIZIA Immobilien AG announces that it has delivered a very successful first six months of 2018 having boosted its operating income by 106.6% to EUR 72.5m compared to the same period last year (EUR 35.1m). The significant growth in assets under management (AUM) to EUR 39.6bn – up 81% from EUR 21.9bn in 2017 – due to the integration of the recent acquisitions of TRIUVA and Rockspring, as well as organic growth, has led to the strong results on PATRIZIA’s key performance indicators.
Karim Bohn, Chief Financial Officer at PATRIZIA, commented: “The results for the first half of 2018 continue to underline PATRIZIA’s successful pan-European real estate investment management platform. Both, organic and inorganic growth contributed to the strong set of results. At the same time, the integration of our recently acquired companies, especially TRIUVA and Rockspring is well advanced and we will see first positive efficiency effects already during the second half of 2018. The acceleration of the efficiency effects and the respective improvement of our cost base results in an increase of the guidance for our full-year operating income to EUR 100-110m, up from an earlier guidance of EUR 85-100m.”
Total service fee income from January to June 2018 significantly increased by 54% to EUR 135.8m compared to EUR 88.1m in the first six months of 2017. Strong and recurring asset management fees (EUR 81.1m) and performance fees (EUR 37.2m) also showed solid increases year-on-year – up 80.1% and 52.6% respectively on H1 2017 – more than offsetting slightly lower transaction fees (EUR 17.5m compared to EUR 18.7m in H1 2017).
Transaction volume has also increased year-on-year, up 69.8% to EUR 2.1bn in a market environment with overall lower transaction activity compared to the first six months last year. By 30 June 2018 PATRIZIA closed disposals of EUR 1.3bn and acquisitions of EUR 0.8bn for its institutional and private clients. Despite the higher disposal volume, AUM increased in the first six months of 2018 due to an existing Asian institutional client transferring asset management mandates to PATRIZIA, reflecting increased trust in PATRIZIA’s pan-European investment management capabilities and asset management track record. Beyond that further acquisitions were signed during the first half of 2018 that will close in the second half of 2018 and hence support PATRIZIA’s growth in AUM this year.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe for more than 30 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 almost 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.
Group Head of Corporate Communications
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