Corporate | 21 March 2013 07:00


PATRIZIA Immobilien AG: PATRIZIA – Results forecast achieved, operating result of EUR 43.9 million includes realized value adjustments to investment property for the first time


PATRIZIA Immobilien AG / Key word(s): Final Results/Real Estate

21.03.2013 / 07:00

PATRIZIA – Results forecast achieved, operating result of EUR 43.9 million includes realized value adjustments to investment property for the first time

– EBT adjusted of EUR 20.3 million meets forecast growth of 20%

– Operating result totals EUR 43.9 million after taking realized fair value adjustments to investment property of EUR 23.6 million into account

– Equity ratio climbs by 7 percentage points to 35.4%

– Bank loans again decrease by 25% to EUR 521 million

– Shareholders once more share in profits with bonus shares in allocation ratio of 10:1

– Results forecast for 2013 will be specified with report on first quarter

Augsburg, March 21, 2013. PATRIZIA Immobilien AG (ISIN DE000PAT1AG) achieved EBT adjusted, not yet revised to take account of non-cash effects, of EUR 20.3 million in the past fiscal year and thus met its forecast of a 20% increase (previous year: EUR 16.7 million). When the cash-related fair value adjustments realized through sales of investment property are included in the operating result, there was a significant increase in profits from EUR 28.8 million to the current level of EUR 43.9 million (+52.6%). When looking at the sources, 51% of earnings across all segments in 2012 came from services (2011: 34%). Our aim was a share attributable to our service business of around 50%, which we thus achieved. Assets under management reported growth of over 30% to EUR 6.9 billion at the end of 2012, of which around 90% are managed on behalf of third parties and almost 25% are located outside of Germany.

Decreased revenues despite higher sales volumes and growth in fund business
In 2012, consolidated revenues fell by 14.8% to EUR 229.2 million (2011: EUR 269.0 million). This was mainly due to the fact that 64% of the units sold came from non-current assets and that the selling prices totaling EUR 178.3 million are, in accordance with IFRS, not reported in revenues (2011: EUR 90.1 million). With EUR 67.3 million, the Services segment, where sales are inherently lower but margins higher, now accounts for 29.4% of consolidated revenues. Revenue volumes at PATRIZIA no longer allow fiscal years to be compared with each other in a meaningful way.

Investment results show the success of our co-investments
Consolidated earnings before interest and tax (EBIT) in the reporting year fell by 18.1% to EUR 44.7 million (2011: EUR 54.6 million). Increased staff and material costs resulted in subdued earnings growth. PATRIZIA generated investment income from co-investments totaling EUR 7.0 million (2011: TEUR 5). The result was influenced to a large extent by the LBBW transaction. The investment results and the improved financial result led to earnings before tax (EBT) increasing by 43.8% to EUR 28.6 million. The financial result improved by one third to EUR -23.1 million (2011: EUR -34.7 million).

Earnings situation significantly improved
The reconciliation of EBT in accordance with IFRS to EBT adjusted was previously effected exclusively via an adjustment to non-cash-related components of the results. Beginning with the consolidated financial statements for 2012, we have started to include the fair value – and therefore cash-related – changes in investment property that are realized through sales in EBT adjusted. Explanation:

Approximately half of the real estate portfolios purchased in 2006/2007 following our stock exchange listing was classified as investment property in accordance with IFRS and as such reported at fair value in accordance with external valuation. The revaluations totaling EUR 69.5 million performed in 2007 were eliminated from the presentation of EBT adjusted for 2007, which at the time contributed to a negative EBT adjusted value of EUR -12.4 million.

Following the completion of repositioning measures, PATRIZIA has generated appreciable sales revenues from investment property since 2011. As these sales revenues almost doubled in 2012 and, at EUR 178.3 million, for the first time exceeded sales revenues from current assets (EUR 106.2 million), PATRIZIA has now started to report the fair value adjustments that result from this in the operating result. In 2012 value adjustments totaling EUR 23.6 million were realized through sales (2011: EUR 12.0 million, +95.7%), which increased the operating result from EUR 20.3 million to EUR 43.9 million. The operating result derived in this way climbed by 52.6% over the previous year and will replace EBT adjusted reported previously as the control variable in the Group.

Net profit increases by 88.7%
In accordance with IFRS, PATRIZIA achieved a net profit for the year of EUR 25.5 million, following EUR 13.5 million in the previous year. PATRIZIA also benefited here from a lower tax quota.

Level of debt reduced, equity ratio increases
Bank loans were reduced by 24.9% to EUR 521.1 million as a result of successful sales of real estate. In turn, cash and cash equivalents improved by 19.8% to EUR 38.1 million. PATRIZIA thus has a stable base with which to enter into further co-investments. The equity ratio increased by 7 percentage points to 35.4% and thus clearly exceeded the target of 30%. The return on equity (in relation to the operating result) amounted to 13.0%.

Appropriation of net profits
The Managing Board and Supervisory Board will submit a proposal to the Annual General Meeting on June 12, 2013 that the net profit of PATRIZIA Immobilien AG for 2012 be entirely carried forward to a new account. As in the previous year, it is planned to issue new shares under a capital increase from retained earnings, with shareholders having an entitlement in a ratio of 10 to 1. The new shares will carry dividend rights from the beginning of the 2013 fiscal year.

Outlook for 2013
The 2012 operating result totaling EUR 43.9 million provides the initial basis and therefore the lower limit for the target to be achieved for the current fiscal year. We will make a more precise forecast when we publish the consolidated financial statements for the first quarter on May 7, 2013. By then, decisions should have been taken on several projects that are currently underway, allowing us definitively to assess their impact on the operating result. Notwithstanding the actual figure decided upon, at least two-thirds of the result should come from Services.

The full annual report for the 2012 fiscal year can be viewed at
www.patrizia.ag/en/investor-relations/reports/annual-reports.html


Overview of key items in the consolidated income statement:

2012
EUR '000 		2011
EUR '000 		Change
in %
Revenues 229,238 269,007 -14.8
Total operating performance 196,111 180,527 8.6
EBITDA 49,280 58,125 -15.2
EBIT 44,739 54,631 -18.1
EBT 28,621 19,906 43.8
Consolidated annual profit 25,455 13,493 88.7
EBT adjusted 1 20,324 16,712 21.6
Realized operating result 1, 2 43,892 28,754 52.6

1 Adjusted for non-cash effects (amortization on other intangible assets (fund management contracts), unrealized value adjustments to investment property, results from interest hedging transactions and change in the value of fund shares (latter applies to 2011 only).
2 Including realized change in the value of investment property

.

Augsburg, March 21, 2013

PATRIZIA Immobilien AG
PATRIZIA Bürohaus
Fuggerstrasse 26
86150 Augsburg (Germany)

Listing: Frankfurt Official Market (Prime Standard)
ISIN: DE000PAT1AG3
SIN: PAT1AG
Contact:

Investor Relations
Margit Miller
P +49 821 50910-369
F +49 821 50910-399
margit.miller@patrizia.ag

Verena Schopp de Alvarenga
P +49 821 50910-351
F +49 821 50910-399
verena.schoppdealvarenga@patrizia.ag



End of Corporate News

21.03.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

Language: English
Company: PATRIZIA Immobilien AG
Fuggerstraße 26
86150 Augsburg
Germany
Phone: +49 (0)821 – 509 10-000
Fax: +49 (0)821 – 509 10-999
E-mail: investor.relations@patrizia.ag
Internet: www.patrizia.ag
ISIN: DE000PAT1AG3
WKN: PAT1AG
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart
End of News DGAP News-Service
204625  21.03.2013