Patrizia Immobilien exceeded its earning forecast for 2017, with a 14% year-on-year increase in operating income to €82 mln.
Patrizia also reported double-digit growth in terms of assets under management (AUM) and transaction volumes in 2017. The year saw the company focus further on growing and broadening its pan-European platform to benefit its institutional and private end-investors.
Based on the expected continued organic growth, and including the earnings contribution from a trio of newly acquired companies including Rockspring, Triuva and Patrizia Sparinvest Property Investors, the company expects to increase operating income in 2018 by up to 22% to €85-100 mln.
Following what was described as the 'successful year 2017', Patrizia's management and supervisory boards have decided to propose, for the first time since 2007, to pay shareholders a dividend of €0.25 per share.
Fee income
Strong returns achieved for investors resulted in attractive performance fees while the strong and diversified pan-European platform drove growth in stable asset management fees. Both contributed to the increase in operating income of 14% to €82 mln from the adjusted 2016 level of €72 mln.
Assets under management, including Patrizia Multi Managers – formerly Sparinvest Property Investors – grew 18% to €21.9 bn at end-2017, a higher than expected increase of €3.3 bn, €2.2 bn organically, over the reporting period.
Wolfgang Egger, CEO of Patrizia, commented: 'Our excellent results underline the outstanding year Patrizia had in 2017 and demonstrate our strength as a partner for clients. We have a unique opportunity to lead in our industry based on our market presence in Europe and build even deeper relationships with a more diversified client base. We will further strengthen our pan-European offering for a global investor base that is looking for stability, diversification, choice and best-in class services. And we will continue to broaden our product offering across markets, sectors, investment styles and risk profiles.'
Capital raising
Patrizia raised and successfully deployed €2.2 bn equity on behalf of institutional and private clients in 2017, balanced across German and international investors. This means Patrizia has invested more than €10 bn equity from institutional clients since 2012. Over the same period, the group has executed transactions worth around €30 bn.
Buying and selling
The company secured €3.5 bn of acquisitions in 2017, an increase of 9% on the prior year (2016: €3.2 bn) and €2.5 bn of sales which is up by 32% (2016: €1.9 bn). Patrizia was active across Europe with acquisitions completed in key markets, including Germany, the UK, Ireland, the Nordics and the Netherlands.
The announced acquisitions of Rockspring, Triuva and Patrizia Multi Managers in the fourth quarter of 2017 will boost Patrizia's pro forma AUM to about €39 bn once all transactions complete. These company-level acquisitions were designed to significantly strengthen Patrizia's market presence in Europe, enabling the group to provide clients better access to European markets and an even broader product range across sectors, investment styles and risk classes.
