PATRIZIA (PAT) H1 2024 earnings summary

Executive summary

• New strategic vision targets €100bn AUM by 2030 through organic growth, with no M&A scenarios included.

• Five growth areas: AIP, Value Add Real Estate, European Infrastructure, Living, and RE-Infra/Smart Cities; target more than €30bn in equity fundraising by 2030.

• H1 AUM fell 2.1% to €56.0bn, mainly due to valuation effects; EBITDA declined 32.4% to €19.2m amid lower service fee income.

• Net loss was €8.5m, compared with H1 2023 profit of €5.7m, driven by lower EBITDA and negative fair value adjustments.

• New Group Executive Committee established to support strategy execution, client focus and efficiency.

Financial highlights

• Revenue fell 5.5% YoY to €123.6m; total operating performance declined 1.9% to €133.4m.

• Total service fee income decreased 9.6% to €137.2m; management fees were €115.5m (-4.2%), performance fees €16.9m (-37.7%), and transaction fees rose 19.5%.

• EBITDA was €19.2m, down 32.4% YoY; margin declined 4.5pp to 13.8%. One-off items and consolidation effects also affected the result.

• EBIT was -€0.5m and EBT -€1.9m; net profit attributable to shareholders was -€3.8m.

• Operating expenses decreased 1.8% to €130.7m; excluding a €3.7m negative one-off tax reimbursement, other operating expenses fell 11.9%.

Outlook and guidance

• FY 2024 guidance confirmed: AUM €54bn–€60bn, EBITDA €30m–€60m and EBITDA margin 11.0%–19.2%.

• AUM expected near the guidance midpoint as planned organic growth offsets continued valuation pressure.

• Client investment activity may improve if interest rates normalize and transaction markets recover; guidance could be narrowed later in 2024 as visibility improves.

• Continued moderate AUM valuation pressure expected, with market stabilization emerging in some segments.