Corporate | 7 August 2013 07:00


PATRIZIA Immobilien AG: Co-investments make a significant contribution to an increase in profit


PATRIZIA Immobilien AG / Key word(s): Half Year Results/Quarter Results

07.08.2013 / 07:00

PATRIZIA Immobilien AG: Co-investments make a significant contribution to an increase in profit

– Operating result of EUR 18.1 million in the first half of 2013 (+34%)

– Result from participations increases to EUR 15.8 million (+191%)

– Net profit for the period triples to EUR 17.7 million

– New co-investments in Germany and the United Kingdom

– New commercial mandates acquired for over EUR 1 billion

Augsburg, 7 August 2013. PATRIZIA Immobilien AG (ISIN DE000PAT1AG3) achieved an operating result of EUR 18.1 million in the first half of 2013, 34% more than in the corresponding period of the previous year. The result from participations made a significant contribution, reflecting the success of co-investments. 72% of the result was generated by Management Services.

Consolidated revenues in the first half of the year amounted to EUR 89.8 million, 13% below the corresponding figure for the previous year. A major reason for the fall was that an increasing volume of real estate was sold that is reported as non-current assets, which is not included in revenues. If all purchase price receipts are included, slightly increased residential sales figures (442 units, +3.3%) resulted in an overall 20% increase in sales revenues to EUR 89.3 million (first half of 2012: EUR 74.1 million). At EUR 36.8 million, revenues from the Management Services segment accounted for 41% of consolidated revenues (first half of 2012: EUR 29.3 million, 28%). Of these, EUR 19.1 million was generated from co-investments, and a further EUR 17.7 million by third party business. The first tranche of the acquisition fee from the GBW transaction was received in the second quarter.

Earnings before interest and tax (EBIT) for the first six months of 2013 amounted to EUR 7.8 million (first half of 2012: EUR 18.2 million, -57%). This is due to the fact that the expansion of Management Services via the creation of co-investments only has an effect on the result from participations, which is assigned to the financial result. Earnings from participations almost tripled, totalling EUR 15.8 million (first half of 2012: EUR 5.4 million). Besides income from the Süddeutsche Wohnen co-investment, this item also includes the asset management fee for GBW AG, which was acquired in April, for the first time. As a consequence, EBT improved by 97% to EUR 17.8 million (first half of 2012: EUR 9.0 million). After all adjustments there was an operating profit of EUR 18.1 million, following EUR 13.5 million in the previous year (+34%). The increase in the profit for the period from EUR 5.3 million to EUR 17.5 million was positively influenced by a tax refund in the second quarter.

Since the end of 2012, bank loans have fallen by EUR 85.5 million, or 16.4% as a result of sales. Cash and cash equivalents rose to EUR 111.6 million (31 December 2012: EUR 38.1 million). A total of EUR 54 million was invested for stakes in co-investments in the second quarter. The Group’s equity ratio improved further to 36.5% (31 December 2012: 35.4%).

New co-investments and mandates
Besides acquiring GBW AG, PATRIZIA also entered into its first co-investment in the United Kingdom in the reporting period; three properties with a total volume of GBP 27 million have already been purchased. A portfolio consisting of 86 German retail properties for EUR 178 million was notarised in a co-investment structure, and a second British co-investment amounting to EUR 285 million was concluded in July. In addition, PATRIZIA acquired commercial mandates from two separate occupational pension funds worth a total of EUR 750 million.

Outlook 2013
Nevertheless, achieving the operating result target set for 2013 will not be straightforward. PATRIZIA’s Managing Board is fairly confident of achieving the targets set with regard to sales and how they will continue to develop. Bank loans have been reduced by 16% and will be in the order of EUR 350 million by the end of the year. The restructuring of the Group to comply with the requirements of the AIFM Directive is causing considerable one-off costs, affecting both the German as well as the international organisations since investment vehicles for institutional investors are set up and marketed there, too. Furthermore, the integration of foreign subsidiaries, whose contribution to results will only be seen in the coming years, is also tying up resources. Finally, it is becoming increasingly challenging to acquire individual properties for such a diverse range of special fund products with adequate returns in a very dynamic market environment. Acquisition fee losses in this field can only be partially compensated by portfolio purchases.

The complete interim report for the first half of 2013 can be accessed at http://www.patrizia.ag/en/investor-relations/reports/quarterly-reports/2013.html


Summary of the Key Items in the Consolidated Income Statement

EUR’000 Q2 2013 Q2 2012 +/-
in % 		H1 2013 H1 2012 +/-
in %
Revenues 47,660 43,639 9.2% 89,761 103,374 -13.2%
Total operating performance 50,730 40,472 25.3% 89,791 88,722 1.2%
EBITDA 6,706 6,426 4.4% 10,530 20,144 -47.7%
EBIT 5,326 5,379 -1.0% 7,835 18,157 -56.8%
EBT 11,557 4,680 > 100% 17,787 9,027 97.0%
Operating result 1 10,487 5,783 81.3% 18,139 13,520 34.2%
Net profit 12,550 2,113 > 100% 17,746 5,310 >100%

1 Adjusted for non-cash effects from amortisation on other intangible assets (fund management contracts) and results from interest hedging transactions. Including realised value adjustments to investment property.


The Managing Board

Augsburg, 7 August 2013

PATRIZIA Immobilien AG
PATRIZIA Bürohaus
Fuggerstrasse 26
86150 Augsburg
Germany

Listing: Frankfurt Official Market (Prime Standard)
ISIN: DE000PAT1AG3
WKN: 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

07.08.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group 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
224519  07.08.2013