PATRIZIA reports solid FY 2020 results and expects profitable growth to continue throughout FY 2021

  • Operating income of EUR 116.5m fully in line with FY 2020 guidance
  • Assets under management increased by 5.7% y-o-y to EUR 47.0bn
  • Guidance range for FY 2021 operating income of EUR 100.0 – 145.0m


Augsburg, 24 February 2021. PATRIZIA AG, a leading partner for global real assets, had a solid FY 2020 despite the challenging market environment due to the Covid-19 pandemic. Based on preliminary financial results, PATRIZIA achieved an operating income of EUR 116.5m, which is only 13.4% below last year’s level and fully in line with the FY 2020 year-end guidance. It is proof of the strong and reliable business model even in an adverse economic and market environment.

Even during one of the worst economic environments globally, PATRIZIA managed to receive equity commitments of EUR 1.9bn, of which more than half came from international clients. Over 30 new domestic and international institutional clients were welcomed to the PATRIZIA platform thereby increasing the strong, diversified client base to over 450. PATRIZIA further expanded its position as a leading partner for global real assets in 2020, now ranking among the top 3 fully independent investment managers for real estate in Europe.

The resilience of investment strategies and the successful business expansion is reflected in further increased assets under management to EUR 47.0bn, an increase of 5.7% y-o-y. The focus on Core/Core+ and selected Value Add investment strategies as well as crises resistant asset classes like residential and logistics helped to withstand pressure from increased market uncertainties.

Recurring management fees increased by 1.3% y-o-y to EUR 193.4m, which proves the stability and resilience of the business model. Adjusted for aperiodic items in the previous year, management fees increased by 3.4% y-o-y. Following Covid-19 lock-downs in Europe, transaction activity in the overall real estate market was down 27% y-o-y. Against this headwind, PATRIZIA signed 5.4bn and closed EUR 6.9bn of transactions for its global client base. This translates into transaction fees of EUR 48.1m in FY 2020. Performance fees of EUR 86.1m remained a stable contributor to operating income. Total service fee income – which combines management, transaction and performance fees – came in at EUR 327.6m, only 5.9% below last year’s level. At the same time, tight cost control led to net operating expenses decreasing 3.3% y-o-y to EUR 219.7m.  

For FY 2021, PATRIZIA expects an operating income in a range of EUR 100.0m to 145.0m. The range is underpinned by the assumption that assets under management and management fees will continue to grow further compared to FY 2020, stabilising operating income at a high level overall.

Wolfgang Egger, CEO of PATRIZIA AG, said: “We were able to raise around EUR 1.9bn of fresh equity for investments in resilient markets in Europe. Our clients trust us even in difficult times for three reasons: We are a forward-thinking partner, we invest responsibly and we have an extensive track record of delivering value. Together with our strong performance on real asset transaction markets, this validates the long-term value drivers of real asset investment management: demographic change, a lower-for-longer interest rate environment and ongoing market consolidation.”

Karim Bohn, CFO of PATRIZIA AG, said: “Our very solid balance sheet and a high degree of financial flexibility will continue to provide stability and further growth opportunities for PATRIZIA in the future. During FY 2020, we were able to show further cost-discipline while at the same time growing our recurring management fees.”

    

Guidance range 2021

EUR m

2020

2019

Change

min

max

Management fees

193.4

190.9

1.3%

204.0

208.0

Transaction fees

48.1

65.3

-26.4%

50.0

60.0

Performance fees

86.1

91.8

-6.3%

60.0

90.0

Total service fee income

327.6

348.0

-5.9%

314.0

358.0

Net sales revenues and co-investment income

20.2

23.8

-14.8%

5.0

20.0

Net operating expenses¹

-219.7

-227.2

-3.3%

-209.0

-223.0

Depreciation and amortisation, net finance costs and other items

-11.6

-10.1

15.1%

-10.0

-10.0

Operating income

116.5

134.5

-13.4%

100.0

145.0

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

 

  
    

Guidance range 2021

EUR bn

31.12.2020

31.12.2019

Change

min

max

Assets under management

47.0

44.5

5.7%

50.0

53.0

      
    

Guidance range 2021

EUR bn

2020

2019

Change

min

max

Equity raised

1.9

3.2

-41.6%

  

Transaction volume - signed

5.4

9.0

-39.2%

6.0

9.0

Transaction volume - closed

6.9

7.6

-9,7%

  


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 37 years. PATRIZIA manages more than EUR 47 billion in assets and employs over 800 professionals at 24 locations worldwide. Through its PATRIZIA Foundation, the company is committed to social responsibility. The Foundation has helped over 230,000 children in need worldwide gain access to education and thus, has given them the chance of a better life over the last 21 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