PATRIZIA
3M 2024 Interim Statement
PATRIZIA SE | 3M 2024 Interim Statement
Content | ||
5 | Consolidated balance sheet | 12 |
6 | Guidance for the fiscal year 2024 | 15 |
7 | Responsibility statement by the legal representatives | 16 |
8 | The PATRIZIA share | 17 |
9 | Supplementary report | 19 |
10 | Appendix | 20 |
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PATRIZIA SE | 3M 2024 Interim Statement
1 Highlights & operational results
PATRIZIA is a leading European independent real asset investment manager. The Company's core business is real asset investment management, offering a comprehensive product portfolio of private and listed equity funds, private debt funds and (multi-manager) fund of fund products in line with individual return expectations, diversification objectives and risk styles to more than 500 institutional and 7,000 semi-professional or private investors.
Investment and transaction markets for real estate and infrastructure remained subdued in the first three months of 2024, driven by the continued price finding process of market participants. Sustained high uncertainty resulting from volatility in interest rate expectations and raised geopolitical tensions impacted the European transaction markets in the first three months of 2024.
Nevertheless, due to its strong platform PATRIZIA was able to sign transactions in the amount of EUR 323.9m (3M 2023: EUR 264.2m; +22.6%) on behalf of clients, with the majority of acquisitions in the infrastructure sector and the majority of disposals in commercial real estate. At the same time, PATRIZIA was able to raise new equity of EUR 311.0m (3M 2023: EUR 22.9m; +>100.0%) from clients for future investments in real assets. In total, available firepower of EUR 3.4bn in PATRIZIA's funds enables the Company to immediately take chances on behalf of its clients when they arise.
PATRIZIA's diverse AUM continued to prove resilient with AUM slightly down by 2.4% to EUR 56.7bn (3M 2023: EUR 58.1bn) mainly driven by market valuation pressure.
Total service fee income decreased by 13.3% to EUR 72.5m (3M 2023: EUR 83.7m). This was attributable to lower
management fees of EUR 57.7m, which declined on the previous year (3M 2023: EUR 62.2m; -7.2%) due to lower management fees from servicing project developments for clients. On a like-for-like basis, management fees showed stability compared to last year. Transaction fees came in at EUR 0.2m (3M 2023: EUR 1.1m; -85.3%) as transactions carried out in the first quarter of the year had no or limited transaction fee elements attached. Performance fees came in at EUR 14.6m (3M 2023: EUR 20.4m; -28.3%), driven by annual carry payments recognised in the first three months of 2024.
Net sales revenues and co-investment income came in virtually unchanged at EUR 1.6m (3M 2023: EUR 1.7m; -5.1%).
Operating expenses increased by 1.7% to EUR -62.5m (3M 2023: EUR -61.5m). The increase is mainly due to trailing reorganisation expenses in connection with the cost-cutting programme initiated in the previous financial year. The increase in staff costs due to inflation-related salary adjustments was offset by savings in other operating expenses.
Other income rose by 73.1% to EUR 5.7m (3M 2023: EUR 3.3m) mainly due to the reversal of liabilities recognised in profit or loss and the positive impact from the deconsolidation of temporarily warehoused assets.
As a result, EBITDA decreased to EUR 17.3m (3M 2023: EUR 27.5m; -36.3%) and the EBITDA margin decreased to 23.4% (3M
2023: 31.8%; -8.5pp), both primarily caused by the market-driven decrease in total service fee income.
PATRIZIA's balance sheet remains well positioned with a solid net equity ratio of close to 70.0% and available liquidity of more than EUR 300.0m, both enabling PATRIZIA to seize market opportunities as they arise, even in a subdued market environment. The Company will also continue to temporarily warehouse assets on its own balance sheet when favourable opportunities arrive.
PATRIZIA's 2024 Annual General Meeting will be held virtually on 12 June 2024. The Board of Directors proposes a dividend per share of EUR 0.34 for FY 2023, equivalent to a growth of 3.0% y-o-y and the sixth consecutive increase in dividends. PATRIZIA shares are expected to trade ex-dividend on 13 June 2024 and the dividend is expected to be paid on 17 June 2024.
PATRIZIA confirms its financial guidance for FY 2024 with AUM in a range between EUR 54.0bn - 60.0bn and an EBITDA of between EUR 30.0m - 60.0m, equivalent to an EBITDA margin of between 11.0% - 19.2% for FY 2024. The guidance assumes that client investment activity will pick up only throughout the course of FY 2024, assuming a normalisation of the interest rate environment and increased activity in the transaction markets once potential buyers and sellers agree on new price levels following the change in the interest rate environment.
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PATRIZIA SE | 3M 2024 Interim Statement
2 Development of key financial performance indicators (KPIs)
2.1 Assets under Management (AUM)
Assets under Management (EUR bn) | ||
31.12.2023 | 57.3 | 57.3 |
-1.0% | ||
31.03.2024 | 56.7 | 56.7 |
Assets under Management as at 31 March 2024 | Sectoral distribution | ||
3%3% | Office | |
2% | Residential | |
27% | ||
16% | ||
Retail | ||
Logistics, Industrial & Light Industrial | ||
12% | Infrastructure | |
Hotel | ||
9% | 28% | Health Care |
Other | ||
Assets under Management as at 31 March 2024 | Geographical distribution | ||
4% 6% | Germany | |
UK & Ireland | ||
4% | France & Belgium | |
3% | ||
4% | Nordics | |
4% | 53% | Asia-Pacific |
7% | Netherlands | |
Italy | ||
4% | ||
Spain | ||
11% | North America | |
Other |
- AUM slightly decreased by 1.0% to EUR 56.7bn in the first three months of 2024 compared to EUR 57.3bn at year-
end 2023 predominantly driven by valuation effects.
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PATRIZIA SE | 3M 2024 Interim Statement
2.2 EBITDA and EBITDA margin
Composition of EBITDA (EUR m)
▼ -28.3% | ▼ -5.1% | ▲ +1.7% | |||||
▼ -7.2% | ▼ -85.3% | 14.6 | 1.6 | ||||
0.2 | -62.5 | ||||||
57.7 | ▲ +73.1% | ▼ -36.3% | |||||
27.2 | 11.6 | 5.7 | 17.3 | ||||
EBITDA | Management | Transaction fees | Performance | Net sales | Operating | Other income | EBITDA |
3M 2023 | fees | fees | revenues and co- | expenses | 3M 2024 | ||
investment | |||||||
income | |||||||
Total service fee income | |||||||
EUR 72.5m; -13.3% | |||||||
change y-o-y |
- Management fees decreased by 7.2% to EUR 57.7m (3M 2023: EUR 62.2m), in particular due to lower management fees from servicing project developments for clients compared to the same period of the previous year. On a like-for-like basis, management fees showed stability compared to last year.
- Transaction fees in the amount of EUR 0.2m (3M 2023: EUR 1.1m) decreased by 85.3% compared to the same period of the previous year due to the persistently challenging market environment.
- Performance fees in the amount of EUR 14.6m decreased by 28.3% due to the current market environment (3M 2023: EUR 20.4m) and mainly resulted from the annual performance fee of co-investment Dawonia.
- Net sales revenues and co-investmentincome decreased by 5.1% and amounted to EUR 1.6m (3M 2023: EUR
1.7m). Net sales revenues increased by 111.0% to EUR 1.7m (3M 2023: EUR 0.8m), mainly due to rental revenues from a property portfolio consolidated for the first time in Q3 2023. In contrast, co-investment income decreased by 111.4% to EUR -0.1m (3M 2023: EUR 0.9m) due to the negative earnings from a temporarily consolidated at- equity investment. - Operating expenses increased by 1.7% to EUR -62.5m (3M 2023: EUR -61.5m). The increase is mainly due to trailing reorganisation expenses in connection with the cost-cutting programme initiated in the previous financial year. The increase in staff costs due to inflation-related salary adjustments was offset by savings in other operating expenses.
- The 73.1% increase in other income to EUR 5.7m (3M 2023: EUR 3.3m) is due to the release of liabilities recognised in profit or loss and a deconsolidation effect.
- Due to the aforementioned factors, EBITDA totalled EUR 17.3m in the 3M 2024 reporting period after EUR 27.2m
in the same period of the previous year.
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PATRIZIA SE | 3M 2024 Interim Statement
EBITDA margin
in %
EBITDA margin
3M 2024
23.4%
3M 2023 | Change |
31.8% | -8.5 PP |
- EBITDA margin compares EBITDA with the sum of total service fee income and net sales revenues and co-investment income. The EBITDA margin decreased year-on-year by 8.5 percentage points to 23.4% (3M 2023: 31.8%) due to decrease in total service fee income, whereby this decline could not be offset by corresponding reductions in expenses.
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PATRIZIA SE | 3M 2024 Interim Statement
Detailed reconciliation to EBITDA
EUR k | 3M 2024 | 3M 2023 |
Management fees (excluding result from participations) | 55,793 | 59,932 |
Shareholder contribution for management services (in result | ||
from participations) | 1,946 | 2,293 |
Management fees | 57,739 | 62,226 |
Transaction fees | 158 | 1,070 |
Performance fees (excluding result from participations)¹ | -494 | 485 |
Performance fees (in result from participations) | 15,124 | 19,908 |
Performance fees | 14,631 | 20,394 |
Total service fee income | 72,527 | 83,690 |
Revenues from the sale of principal investments | 5 | 0 |
Cost of materials | -179 | -59 |
Rental revenues | 1,828 | 851 |
Revenues from ancillary costs | 78 | 30 |
Net sales revenues | 1,732 | 821 |
Earnings from companies accounted for using the equity method | -936 | 62 |
Remaining result from participations | 811 | 810 |
Co-Investment result | -126 | 872 |
Net sales revenues and co-investment income | 1,607 | 1,694 |
Staff costs | -41,576 | -40,359 |
Other operating expenses² | -15,640 | -16,870 |
Cost of purchased services | -4,308 | -4,110 |
Impairment result for trade receivables and contract assets | -14 | -6 |
Reorganisation expenses | -967 | -142 |
Operating expenses | -62,505 | -61,487 |
Other operating income² | 5,066 | 2,790 |
Other revenues | 615 | 494 |
Reorganisation Income | 2 | 0 |
Other income | 5,683 | 3,284 |
EBITDA | 17,313 | 27,181 |
Change
-6.9%
-15.1%
-7.2%
-85.3%
-201.7%
-24.0%
-28.3%
-13.3%
/
201.6%
114.9%
163.8%
111.0%
<-1,000.0%
0.1%
-114.4%
-5.1%
3.0%
-7.3%
4.8%
152.1%
580.6%
1.7%
81.6%
24.4%
/
73.1%
-36.3%
Table in the current report
Reconciliation of total service fee income
Reconciliation of total service fee income
Reconciliation of total service fee income
Reconciliation of total service fee income
Reconciliation of total service fee income
Reconciliation of total service fee income
Revenues
Consolidated income statement
Revenues
Revenues
Consolidated income statement
Consolidated income statement & Reconciliation of total service fee income
Consolidated income statement
Consolidated income statement
Consolidated income statement
Consolidated income statement
Consolidated income statement
Consolidated income statement
Revenues
Consolidated income statement
- Negative revenues due to updated service billing.
- The previous year´s figures were restated in line with the new table structure in the year under review.
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PATRIZIA SE | 3M 2024 Interim Statement
2.3 Further KPIs
Transaction volume based on signed transactions (EUR m)
3M 2023 | 256.6 | 7.6 |
+22.6% | ||
3M 2024 | 157.0 | 166.9 |
Acquisitions | Disposals |
Transaction volume based on closed transactions (EUR m)
3M 2023 | 346.4 | 169.2 | |
+16.4% | |||
3M 2024 | 281.9 | 318.0 | |
Acquisitions | Disposals |
- In the reporting period, investment and transaction markets for real estate and infrastructure remained subdued. Sustained high uncertainty, resulting from unclear interest rate developments and higher geopolitical concerns characterised the position on European transaction markets in the first three months of 2024. Nevertheless, PATRIZIA was able to sign transactions for EUR 323.9m (3M 2023: EUR 264.2m; +22.6%) on behalf of clients, with the majority of acquisitions being in the infrastructure sector and the majority of disposals in commercial real estate. Transactions closed increased by 16.4% to EUR 600.0m (3M 2023: EUR 515.6m).
Equity raised (EUR m)
3M 2023 | 22.9 |
+1,255.5% | |
3M 2024 | 311.0 |
- New equity raised from institutional and semi-professional investors for various German and international real asset investments amounted to EUR 311.0m (3M 2023: EUR 22.9m; +>100.0%) in the first three months of 2024. With available dry powder totalling EUR 3.4bn in the funds managed, PATRIZIA is ready to take opportunities for its
clients once they arise.
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PATRIZIA SE | 3M 2024 Interim Statement
3 Capital allocation
PATRIZIA's capital allocation as at 31 March 2024
Third-party business
Co-Investments and Warehousing
Real estate - residential
thereof Dawonia GmbH
thereof Dawonia profit entitlements
Real estate - balanced
Real estate - commercial
Infrastructure
Venture capital
Private equity
Principal investments
Other balance sheet items
Tied-up investment capital
Available liquidity
Total investment capital
of which debt (bonded loans - PATRIZIA Group corporate financing)
of which debt (financing for temporarily consolidated assets and portfolios)
of which equity PATRIZIA (without non-controlling interests)
- Net of deferred taxes from valuation in accordance with IFRS 9
- Incl. goodwill and fund management contracts (included in other intangible assets)
Assets under Management
EUR m
46,580.5
10,123.2
5,184.4
5,046.3
2,629.7
669.7
1,597.6
18.7
23.1
2.2
56,705.9
56,705.9
Invested | |||
capital (fair | Invested | ||
value) | capital (at cost) | Participations | |
EUR m | EUR m | in % | |
0.0 | |||
793.0 | 388.3 | ||
576.4 | 174.3 | ||
159.6 | ¹ | 51.7 | 5.1 |
294.2 | ¹ | 0.0 | 0.1 |
97.7 | 99.2 | ||
64.0 | ¹ | 59.9 | |
49.8 | 49.6 | ||
4.0 | 4.1 | ||
1.1 | 1.1 |
- ²
1,176.7
322.9
1,499.6
158.0
180.5
1,161.1
- PATRIZIA selectively invests Group equity in partnerships with its institutional clients, in the form of co- investments, of which Dawonia GmbH is the largest co-investment. In addition, PATRIZIA uses equity to temporarily consolidate assets and portfolios with the aim of later contributing them to funds financed by clients.
- PATRIZIA holds a stake in a very attractive residential real estate portfolio via Dawonia GmbH. With around 27,000 flats, Dawonia is one of the largest housing companies in Munich and southern Germany. For 80 years, Dawonia has been planning, developing, building and managing high-quality, affordable apartments which are in high demand, particularly in urban growth regions. The company therefore is very well positioned in this market segment. Around 80% of the housing stock is concentrated in the 20 largest locations in southern Germany, i.e. in conurbations such as Munich and the surrounding area, as well as Nuremberg, Erlangen, Regensburg and Würzburg. Dawonia is now also active outside Bavaria, for example in Hessen.
- Furthermore, PATRIZIA holds an interest in OSCAR Lux Carry SCS (Dawonia profit entitlements - see table above), which entitles PATRIZIA to a variable profit share in connection with the Dawonia investment. The initial 10-year investment phase of the fund has been temporarily extended beyond 2023 in close alignment with all investors. PATRIZIA is in constructive discussions with investors in Dawonia about a long-term extension of the investment mandate.
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PATRIZIA SE | 3M 2024 Interim Statement
4 Consolidated income statement
EUR k
Revenues
Other operating income¹
Total operating performance
Cost of materials
Cost of purchased services
Staff costs
Other operating expenses¹
Impairment result for trade receivables and contract assets
Result from participations
Earnings from companies accounted for using the equity method
EBITDAR
Reorganisation income
Reorganisation expenses
EBITDA
Depreciation, amortisation and impairment
Earnings before interest and taxes (EBIT)
Financial income
Financial expenses
Other financial result
Result from currency translation
Earnings before taxes (EBT)
Income taxes
Net profit/ loss for the period
Attributable to shareholders of the parent company
Attributable to non-controlling interests
Earnings per share (undiluted) in EUR
Earnings per share (diluted) in EUR
3M 2024
57,983
5,066
63,049
-179
-4,308
-41,576
-15,640
-14
17,881
-936
18,278
2
-967
17,313
-6,739
10,574
4,276
-2,417
0
-1,568
10,865
-6,445
4,420
4,619
-199
0.05
0.05
3M 2023
62,863
2,790
65,652
-59
-4,110
-40,359
-16,870
-6
23,012
62
27,323
0
-142
27,181
-7,125
20,056
2,218
-1,848
156
-23
20,559
-8,123
12,436
12,474
-38
0.15
0.15
1 The previous year's figures were restated in line with the new table structure in the year under review.
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Patrizia AG published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 16:03:05 UTC.