Despite having achieved an EBITDA of EUR 78.8m for the first nine months of 2022, PATRIZIA is responding to the accelerated market weakness by lowering its guidance for FY 2022.
Contrary to previous assumptions, PATRIZIA no longer expects the geopolitical environment in Europe to stabilise in the short term or market conditions – especially in the European real estate market - to materially improve in the fourth quarter of the year 2022.
In addition, the company notes that the speed and extent to which planned investments (real estate investments in Europe in particular) are put on hold, has recently accelerated due to an increased sense of hesitation in the market to commit to new investments, which the company however sees as temporary in nature.
This affects PATRIZIA in particular in its forecast for transaction fees, which has to be lowered significantly. Due to delayed investments, the guidance for growth in Assets under Management and for management fees for FY 2022 has to be adjusted as well, albeit to a relatively low degree. In addition, the company has to adjust its guidance for the financial year 2022 in further revenue and cost positions, the latter primarily driven by one-off items.
Overall, PATRIZIA now expects an EBITDA range, before reorganisation expenses, of EUR 70.0 – 85.0m for FY 2022 and an EBITDA range of EUR 60.0 – 75.0m, including such one-off expenses.
The planned one-off expenses comprise measures to adjust the company’s cost base, rebalance it for selected growth initiatives and increase long-term profitability. The new FY 2022 EBITDA guidance follows on from the previous guidance for an EBITDA range of EUR 100.0 – 120.0m. The company now expects FY 2022 Assets under Management to grow to EUR 57.0 – 58.0bn, in contrast to the previous assumption of EUR 57.0 – 60.0bn. The guidance range for the FY 2022 EBITDA margin is accordingly adjusted to 19.0% - 22.1%, from 29.9% - 32.4% before.
PATRIZIA will publish the full set of 9M 2022 financial results – as planned – in the evening of 9 November 2022 European local time.