Patrizia Immobilien AG has announced that it exceeded its earnings forecast for 2017, delivering double-digit growth in operating income, assets under management (AUM) and transaction volumes in a year which featured further focus on growing and broadening its pan-European platform for the benefit of Patrizia’s institutional and private investors.
Superior returns achieved for investors resulted in attractive performance fees while the strong and diversified pan-European platform drove growth in stable asset management fees. Both contributed to the increase in operating income of 14% to €82m from the adjusted 2016 level of €72m. AUM, including Patrizia Multi-Managers – formerly Sparinvest Property Investors – grew 18% to €21.9bn at year end 2017, a higher than expected increase of €3.3bn, €2.2bn organically, over the reporting period. Transaction volumes rose 17% year-on-year to €6bn.
Patrizia raised and successfully deployed €2.2bn equity on behalf of institutional and private clients in 2017 – balanced across German and international investors – meaning that, since 2012, Patrizia has invested more than €10bn equity from institutional clients. Over the same period, the Group has executed transactions worth around €30bn. In total, Patrizia secured €3.5bn of acquisitions in 2017, an increase of 9% on the prior year (2016:€3.2bn) and €2.5bn of sales which is up by 32% (2016:€1.9bn). The company was active across Europe with acquisitions completed in key markets, including Germany, the UK, Ireland, the Nordics and the Netherlands.
The fourth quarter of 2017 was notable for the announced acquisitions of Rockspring, TRIUVA and Patrizia Multi-Managers, increasing Patrizia’s pro forma AUM to approximately €39bn once all transactions complete. Based on the expected continued organic growth, and including the earnings contribution from the acquired companies, the company expects to increase operating income in 2018 by up to 22% to €85-100m.
Wolfgang Egger, CEO of Patrizia Immobilien AG, commented: “Our excellent results underline the outstanding year Patrizia had in 2017 and demonstrate our strength as a partner for clients. We have a unique opportunity to lead in our industry based on our market presence in Europe and build even deeper relationships with a more diversified client base. We will further strengthen our pan-European offering for a global investor base that is looking for stability, diversification, choice and best-in-class services. And we will continue to broaden our product offering across markets, sectors, investment styles and risk profiles.”