Patrizia, the Germany-based real assets company with plans to grow to €100bn AUM in five years, has presented H1 results that show a 32% collapse in profits but with a silver lining.
Operating in a tough market environment, the firm has seen its AUM stutter. AUM stands at €56 bn versus €57.3 bn a year ago.
Meanwhile, profits are down to €19.2 mln from €28.4 mln in the corresponding H1 in 2023. The much smaller profit was driven by expected lower performance fees.
Acknowledging a market environment still characterised by continued high uncertainty, the first six months of the year showed ongoing pressure on revenues but first signs of improvement in operating expenses, said Patrizia.
Patrizia was able to close transactions of almost €1.5 bn on behalf of its clients, with major acquisitions in the infrastructure, logistics and in the residential sector as well as via the Advantage Investment Partners (AIP) fund of funds platform. The majority of disposals involved commercial real estate.
While signed transactions still came in below last year’s level (-18.3% y-o-y), equity raised from clients for future investments in real assets increased by 82.6% to €387.3 mln, a big increase on €212.1 mln the previous year.
Management fees decreased by -4.2% to €115.5 mln while transaction fees increased by 19.5% to €4.9 mln.
The company offered future financial guidance assuming that client investment activity will pick up in the second half of the year. However, due to material downside and upside risks stemming from temporarily consolidated assets and funds as well as potential non-operational one-off items, a narrowing of the guidance range is expected later in 2024.
Strategy update
The firms is pursuing a mid-term strategy with the ambition to reach €100 bn AUM within the next five years.
Asoka Wöhrmann, CEO, said: ‘We manage through a continued uncertain market environment, but we remain cautiously optimistic for the full year.’
‘We are seeing some operational improvements with more equity raised than last year, but continued pressure on revenues. However, we will remain cost conscious and stay close to our clients.’
‘We are offering them a broad range of smart investment solutions for real estate and infrastructure which helps them diversify their portfolios for long-term stable and attractive returns.’
‘Our clear ambition as a smart real assets manager of choice is to leverage our strong position in Germany, significantly grow in Europe and attract more international investors to our growing real estate, infrastructure and Re-Infra investment platform.’
‘We will remain an active buyer with the available firepower in our managed funds.’
