Global investment firm Patrizia reported a 2.1% annual drop of assets under management (AUM) in H2 2023 to €57.9 bn.
It said that the moderate decrease was due to the broad geographic and sectoral diversification of its real estate and infrastructure investments.
Recurring management fees grew 3.6% to €120.6 mln, while transaction fees dropped to €4.1 mln (from €11.4 mln in H1 2022) as did performance-related fees to €27.1 mln (from €8 mln).
Net income from sales of own portfolio and co-investments decreased 61% to €2.9 mln following the profitable sale of Trocoll House, one of the last remaining own portfolio properties in the UK.
Net expense items increased by 10.2% to €126.3 mln, positively influenced by the profitable deconsolidation of the Silver Swan project development in Hamburg.
Excluding deconsolidation effects and restructuring costs, operating costs were stable despite an increased cost base due to M&A consolidation effects and inflation.
Personnel expenses increased 4% to €85.8 mln, while other operating expenses decreased 8.2% to €38.4 mln as part of Patrizia’s ongoing focus on cost control.
EBITDA dropped 48% to €28.4 mln and the EBITDA margin fell from 32.2% to 18.3%, reflecting market uncertainty.
With an equity ratio of 71.4% and available liquidity of €305.2 mln, Patrizia believes it is well positioned to benefit from market opportunities.
Asoka Wöhrmann, CEO of Patrizia commented: ‘The market environment overall remains challenging, but Patrizia’s well diversified platform offers opportunities for clients to invest in the sectors we have high conviction in, which are those addressing the global megatrends of demographic change, digitalisation, urbanisation and decarbonisation. I am excited about driving forward the company’s next development phase and to delivering shareholder value. We will strengthen and diversify our German business and we will scale our investment offering globally. To help achieve this, we leverage the vast synergies between real estate and infrastructure to create even more value for our growing network of international clients and for our stakeholders.’
Christoph Glaser, CFO of Patrizia SE added: ‘We continue to operate in a tough market environment affecting revenue generation in transaction-related fees. Nevertheless, we benefit from the stream of stable and recurring management fees as the solid basis of Patrizia’s platform. To preserve AUM and recurring management fees, the active management of the current assets for the benefit of our clients is more important than ever. Furthermore, the effective management of our operating cost base has the utmost priority. At the same time, we will continue to support selected growth initiatives.’
