PATRIZIA reports solid financial results for Q1 2020
PATRIZIA AG recorded an operating income of EUR24.7 million in the first three months of 2020, an increase of 2.9 per cent from EUR24.0 million in the same period last year.
The further increased level of assets under management (AUM) and continued successful real estate transactions for the Group’s global clients in the first three months of the year drove solid y-o-y growth in management and transaction fees. Performance fees remained a stable contributor to overall financial results, only slightly below last year’s level. Total service fee income – which combines management, transaction and performance fees – increased by 13.1 per cent y-o-y, from EUR71.1 million in the first three months of 2019 to EUR80.4 million in the same period in 2020.
Karim Bohn, CFO of PATRIZIA AG, says: “We had a solid start into FY 2020 and we strongly believe PATRIZIA will successfully weather the Covid-19 crisis with our resilient business model, rock-solid balance sheet and strong cash position. Covid-19 has significantly slowed down activity in the real estate investment market but we expect a material recovery of the real estate transaction activity by the end of the third quarter 2020 at the earliest. To reflect these continued uncertainties, we have broadened our guidance range for FY 2020 operating income to a level of EUR100.0 million to EUR140.0 million.”
Based on the successful execution of a number of transactions for its global clients in 2020 the company already has sufficient visibility in the operating income development in H1 2020 and is confident to deliver on the broadened guidance range despite the remaining macro-economic uncertainties.
PATRIZIA at the same time reaffirms its proposed shareholder dividend payment of EUR 0.29 per share for FY 2019, an increase of 7.4 per cent to last year’s level, at the AGM scheduled for 1 July 2020. The company will also continue its share buy-back programme that started end of March 2020.
Wolfgang Egger, CEO of PATRIZIA AG, says: “We are in very close contact with all our stakeholders. They know, we are a strong and reliable business partner that helps them manage through this crisis. We are very familiar with the challenging situation for our tenants and we are carefully balancing their needs to maintain a stable tenant base in the communities we operate in with our obligations to our institutional and private clients.”