PATRIZIA Immobilien AG has continued its development into Europe’s leading fully integrated real-estate investment company.
In the first quarter, net profit after taxes rose by 62.5% to €5.2 million (Q1 2012: €3.2 million). Earnings before taxes (EBT) improved by 43.3% to €6.2 million (Q1 2012:€4.3 million). At €7.7 million, the operating result was at the same level as in the previous year. With regard to earnings quality, it should be noted that the one-off purchase fee for large scale transaction was collected in the first quarter of the previous year. In the current year, the same result was generated from ordinary business operations without major one-time items. 30% of the result in the reporting period was generated thanks to services.
The net assets and financial position also developed positively. Bank loans decreased by €5.1 million to €515.9 million due to apartment sales (December 31, 2012: €521.0 million). The equity ratio improved further to 36.1% (December 31, 2012: 35.4%). Cash and cash equivalents more than tripled to €119.1 million (December 31, 2012: €38.1 million). As at March 31, 2013, PATRIZIA had 607 employees throughout Europe (March 31, 2012: 586, + 3.6%).
In the reporting period, PATRIZIA increased the number of apartments sold by 72.3% to 684 (Q1 2012: 397). 118 apartments were sold as a service provider (Q1 2012: 51), 306 from co-investments (Q1 2012: 86) and 260 from our own investments (Q1 2012: 260). As at December 31, 2013, PATRIZIA's own portfolio still comprised 5,530 apartments. By 2016, PATRIZIA will have sold all its own properties; the resulting sales proceeds will be reinvested via co-investments.
In the first quarter of 2013, real estate worth €164 million was transferred to the two PATRIZIA asset management companies. PATRIZIA has set up 21 special funds with a target volume of €8.4 billion. In the reporting period, PATRIZIA won its bid for an asset management mandate with a volume of €175 million via its subsidiary based in Copenhagen. The mandate consists of ten commercial properties in Sweden, Finland and Denmark. The client is a local institutional investor, who is backed predominantly by Danish pension funds and insurance companies.
“For the current fiscal year, we are expecting a renewed improvement of our earnings power and an increase of the operating result of around 10% to between €47 million and €49 million. At least two thirds of this will come from services,” said Wolfgang Egger. “In the second quarter, we anticipate a significant increase in earnings. Firstly because we can post the purchase fee for a portfolio transaction after closing at the end of May, and secondly because we expect the transfer of ownership, benefits and obligations for notarized block sales worth €72 million by June 30, 2013.”