The full-year operating income guidance was broadened in May 2020 to EUR 100.0m to 140.0m (previously EUR 120.0 – 140.0m) to reflect uncertain Covid-19 impact on European real estate investment markets throughout FY 2020.
Previous guidance at the time of publication
Adjusted guidance FY 2020
Assets under management
Growth of EUR 3.5 – 4.5bn
Growth of EUR 2.0 – 3.5bn
|EUR 120.0 – 140.0m|
EUR 100.0 – 140.0m
PATRIZIA is now anticipating management fees for asset and portfolio management services of between EUR 190.0m and EUR 200.0m (previously EUR 195.0 – 205.0m).
The company now expects the transaction market to slow down after the first quarter with a material rebound in transaction activity at the end of the third quarter of 2020 at the earliest. Consequently, it is now forecasting transaction fees of between EUR 30.0m and EUR 40.0m (previously EUR 56.0 – 66.0m) based on a signed transaction volume of EUR 3.5 – 5.5bn (previously EUR 7.0 – 8.0bn).
Income from performance fees is determined by the yields achieved in excess of the agreed target yields. These result from the realisation of value-adding measures in particular. PATRIZIA has broadened the performance fee guidance to between EUR 80.0m and EUR 110.0m (previously EUR 85.0 – 100.0m) to reflect the uncertain Covid-19 impact on European real estate investment markets throughout the year, but also the continued flight to quality assets, which could lead to higher than anticipated performance fees on Core and Core+ assets.
Total service fee income is now expected to amount to between EUR 300.0m and EUR 350.0m (previously EUR 336.0 – 371.0m). In addition, the guidance for net sales revenues and co-investment income was increased to EUR 20.0m (previously EUR 7.0m) after higher visibility on co-investment income for the next quarters.
Net operating expenses, which primarily comprise staff costs and non-staff operating expenses, are now forecasted at between EUR 210.0m and EUR 220.0m (previously EUR 214.0 – 229.0m). This means the ratio of net operating expenses to average assets under management (total cost ratio) is expected to range between 0.45% and 0.50% in 2020.
The Management Board and Supervisory Board of PATRIZIA AG are proposing that the HGB unappropriated profit for the 2019 financial year in the amount of EUR 500.8m can be used to pay a dividend of EUR 0.29 per share, with the remaining amount being carried forward to new account. Based on the share of the IFRS consolidated net profit for 2019 attributable to shareholders of EUR 52.9m, this corresponds to a pay-out ratio of 50.7%. The year-on-year growth rate of management fees (2019: 5.8% adjusted for non-periodic effects) and the year-on-year growth rate of assets under management (2019: around 8%) form the basis for the dividend proposal of the Management Board and Supervisory Board of PATRIZIA AG, which corresponds to an increase in the dividend of around 7% as against the previous year.