(Telestock) – PATRICIAa German company active in investments in the real economy, confirms EBITDA guidance for the 2024 financial year of 30-60 million euros, with consolidation effects and one-off items that “could impact the financial results of the 2024 financial year”.
The company itself announced this in the note on the financial results for the first half of 2024. “In a market context still characterized by strong uncertainty, the first six months of the year showed continued pressure on revenues but the first signs of improvement in operating costs,” the press release reads.
In the first half of 2024, PATRIZIA was able to close transactions for almost 1.5 billion euros on behalf of its clients, with major acquisitions in the infrastructure, logistics and residential sectors, as well as through the Advantage Investment Partners (AIP) fund-of-funds platform. The majority of the disposals concerned commercial real estate.
While signed transactions remained below last year’s level (-18.3% y/y), the capital raised from customers for future investments in real estate increased by 82.6% to EUR 387.3 million (1st half 2023: EUR 212.1 million).
The assets under management (AUM) recorded a moderate decline in the first half of 2024, amounting to -2.1% year-on-year, to EUR 56.0 billion (FY 2023: EUR 57.3 billion; H1 2023: EUR 57.9 billion, -3.2% year-on-year), due to continued valuation pressure, in line with management expectations.
The management fees decreased by 4.2% to EUR 115.5 million (first half of 2023: EUR 120.6 million) due to lower development service fees and valuation effects.
THE net sales revenue and co-investment income amounted to EUR 1.4 million (H1 2023: EUR 2.9 million; -52.1%) due to negative earnings from a temporarily consolidated equity investment.
The operating expenses improved slightly by 1.8% to EUR 130.7 million (1st half 2023: EUR 133.1 million) thanks to continued cost discipline. Personnel costs as part of operating expenses decreased to EUR 83.6 million (1st half 2023: EUR 85.8 million) as a result of the reorganization measures implemented in 2023, despite inflation-related salary adjustments made in the 1st half 2024.
Other revenues increased by 65.0% to EUR 11.2 million (H1 2023: EUR 6.8 million), mainly due to the reversal of variable liabilities related to personnel costs as part of active cost management.
The market-driven decline in total service fee revenues, in particular performance fees, could not be offset by cost items and other revenues, resulting in a decline in EBITDA to EUR 19.2 million (H1 2023: EUR 28.4 million; -32.4%) and a decrease in the EBITDA margin of 13.8% (H1 2023: 18.3%; -4.5pp).