PATRIZIA AG had a solid FY 2020 despite the challenging market environment due to the Covid-19 pandemic. Based on preliminary financial results, PATRIZIA achieved an operating income of EUR 116.5m, which is only 13.4% below last year’s level and fully in line with the FY 2020 year-end guidance. It is proof of the strong and reliable business model even in an adverse economic and market environment.
Even during one of the worst economic environments globally, PATRIZIA managed to receive equity commitments of EUR 1.9bn, of which more than half came from international clients. Over 30 new domestic and international institutional clients were welcomed to the PATRIZIA platform thereby increasing the strong, diversified client base to over 450. PATRIZIA further expanded its position as a leading partner for global real assets in 2020, now ranking among the top 3 fully independent investment managers for real estate in Europe.
The resilience of investment strategies and the successful business expansion is reflected in further increased assets under management to EUR 47.0bn, an increase of 5.7% y-o-y. The focus on Core/Core+ and selected Value Add investment strategies as well as crises resistant asset classes like residential and logistics helped to withstand pressure from increased market uncertainties.
Recurring management fees increased by 1.3% y-o-y to EUR 193.4m, which proves the stability and resilience of the business model. Adjusted for aperiodic items in the previous year, management fees increased by 3.4% y-o-y. Following Covid-19 lock-downs in Europe, transaction activity in the overall real estate market was down 27% y-o-y. Against this headwind, PATRIZIA signed 5.4bn and closed EUR 6.9bn of transactions for its global client base. This translates into transaction fees of EUR 48.1m in FY 2020. Performance fees of EUR 86.1m remained a stable contributor to operating income. Total service fee income – which combines management, transaction and performance fees – came in at EUR 327.6m, only 5.9% below last year’s level. At the same time, tight cost control led to net operating expenses decreasing 3.3% y-o-y to EUR 219.7m.
For FY 2021, PATRIZIA expects an operating income in a range of EUR 100.0m to 145.0m. The range is underpinned by the assumption that assets under management and management fees will continue to grow further compared to FY 2020, stabilising operating income at a high level overall.
Source : Company