EQS-News: PATRIZIA 3M 2023 financial results: Solid EBITDA growth driven by continued increase in management fees and lower net operating expenses
EQS-News: PATRIZIA SE
/ Key word(s): Quarterly / Interim Statement/Quarter Results
PATRIZIA 3M 2023 financial results: Solid EBITDA growth driven by continued increase in management fees and lower net operating expenses
Augsburg, 11 May 2023. PATRIZIA, a leading partner for global real assets, today published its 3M 2023 financial results and confirmed the financial guidance for FY 2023 that it communicated to the market with its FY 2022 financial results. In the past financial year, geopolitical circumstances and macroeconomic shifts impacted client investment activity across the real assets industry. However, due to the increasingly diversified international product offering in real estate and infrastructure and the nature of the company’s business model as an investment manager without material own balance sheet exposure, PATRIZIA was able to demonstrate operating resilience in a volatile and fast-changing market environment. Financial Results Recurring management fees increased 13.8% y-o-y to EUR 62.2m due to organic growth, consolidation effects from multi manager ADVANTAGE Investment Partners (consolidated 1 December 2022) and infrastructure investment manager Whitehelm Capital (consolidated 1 February 2022), as well as fees related to project developments for clients. At the same time client and market activity remained subdued, despite the first three months in the year traditionally delivering the lowest investment activity. The tough market environment led to transactions fees declining by 51.9% to EUR 1.1m in 3M 2023. Performance fees came down 21.3% y-o-y but in terms of volume remained an important contributor to revenues even in challenging times. Overall total service fee income increased 1.1% y-o-y to EUR 83.7m, with recurring management fees more than compensating for the decline in transaction and performance fees. Net sales revenues and co-investment income declined 66.1% y-o-y to EUR 1.7m, fully in line with budget and strategy. Q1 2022 included a one-off gain from the disposal of one of the remaining balance sheet properties in UK (Trocoll House). PATRIZIA as an investment manager today has virtually no remaining direct and long-term balance sheet exposure to real estate. Net operating expenses declined 5.2% y-o-y to EUR 58.2m despite the first-time consolidation of ADVANTAGE Investment Partners and Whitehelm. This positive development was primarily driven by active cost containment and other income. Operating expenses (gross) declined by 2.1% to EUR 61.5m in 3M 2023. At the same time other income increased by 160.4% y-o-y to EUR 3.3m, due to the profitable sale of the stake in tech company control.IT in the first quarter 2023. Overall, the 3M 2023 cost base also shows first positive effects from the strategic reorganisation during the fourth quarter of FY 2022. Statements by CEO and CFO Christoph Glaser, CFO of PATRIZIA SE adds: “PATRIZIA delivered a decent performance in the first quarter of the year despite a truly challenging environment. Our cost efficiency initiatives show the first positive effects while revenues continued to be supported by growth in recurring management fees. Nevertheless, after a few quarters of subdued activity due to external market shocks, client activity will return at some stage and we have the product suite and on-the-ground expertise to provide our clients with attractive investment opportunities. At the same time, the continued strength of our solid balance sheet and financial flexibility allows us to capitalise on opportunities if and when they arise.” AGM, dividend payment and outlook Despite continuing challenges in the macroeconomic environment, PATRIZIA reiterates its financial guidance for FY 2023 with AUM in a range between EUR 60.0 - 65.0bn and an EBITDA of between EUR 50.0 - 90.0m, equivalent to an EBITDA margin of between 15.6% - 24.3% for FY 2023. The guidance assumes that client and market activity will pick up in the second half of 2023. Further information can be found here.
11.05.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | PATRIZIA SE |
Fuggerstraße 26 | |
86150 Augsburg | |
Germany | |
Phone: | +49 (0)821 - 509 10-000 |
Fax: | +49 (0)821 - 509 10-999 |
E-mail: | investor.relations@patrizia.ag |
Internet: | www.patrizia.ag |
ISIN: | DE000PAT1AG3 |
WKN: | PAT1AG |
Indices: | SDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1631067 |
End of News | EQS News Service |
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1631067 11.05.2023 CET/CEST
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