Patrizia, the listed German real assets group, has reported financial results for the first nine months as it admitted the weaker market was having an adverse impact.
The company said that although the transaction market for real estate and infrastructure slowed down over the course of the first nine months due to increased geopolitical risks, high inflation and rising interest rates, it was still able to sign transactions of around €4.5b – a 20.2% year-on-year rise.
Assets under management increased 17.4% since the start of the year to €57.1bn driven by the completion of the Whitehelm Capital purchase, plus continued organic growth and positive valuation. Furthermore, €1.8 bn of new equity was raised.
But profits have taken a hit. EBITDA for the first nine months of 2022 amounted to €78 mln – a 17.2% fall on 2021.
Costs have increased 6.7% especially after taking on staff from Whitehelm, it confirmed.
Contrary to previous assumptions, the German group said it no longer expected the geopolitical environment in Europe to stabilise in the short term or market conditions to materially improve before the end of the year.
In addition, the company noted that that planned investments especially in European real estate had been placed on hold amid an increased sense of hesitation in the market to commit to new investments, which the company, however, sees as just temporary.
Wolfgang Egger, CEO, said: ‘Since Patrizia was founded in 1984, we mastered a series of crises and we emerged stronger from each crisis. We are convinced that our broad product shelf, local expertise on a global scale, and solid balance sheet will enable us to successfully navigate through the current choppy waters, as a strong and reliable partner for our clients.’
‘With every crisis and price correction also come new opportunities. So, we will use our solid balance sheet to make targeted investments that are the seeds for future growth.’
The company said it would continue as transformation to one with a higher level of recurring income. This is being enabled by an increased focus on German and international flagship investment strategies and discretionary capital, it said, as well as the continued global diversification of the company’s product offering across equity, debt and public listed funds, and its capital raising.
