PATRIZIA announces FY 2024 preliminary financial results in line with guidance and proposes an increased dividend of EUR 0.35 per share

• EBITDA of EUR 45.1m (+3.4% y-o-y¹) impacted by challenging revenue environment, cost efficiency measures and support from other income
• Assets under Management (AUM) with slight decline but supported by continued client interest in real assets with EUR 1.8bn closed investments for clients in FY 2024
• Proposed dividend per share of EUR 0.35 (+2.9% y-o-y) backed by solid balance sheet
• FY 2025 EBITDA guidance range of EUR 40.0 – 60.0m implies modest growth in revenues and extended focus on cost efficiency leading to increased earnings quality

Augsburg, 24 March 2025. PATRIZIA, a leading investment manager for real assets, today published preliminary, unaudited financial results for FY 2024. The Company achieved an EBITDA of EUR 45.1m (FY 2023¹: EUR 43.6m) in the middle of its communicated guidance range.

Total service fee income amounted to EUR 264.1m (FY 2023: EUR 312.4m) with management fees of EUR 228.4m (FY 2023: EUR 251.1m) reflecting the lower AUM base as well as lower fees from real estate development services and debt advisory for clients. While transaction fees came in virtually unchanged, performance fees decreased significantly due to the overall still low realisation activity in real assets. Net sales revenues and co-investment income of EUR 1.2m (FY 2023: EUR 6.7m) and other operating income of EUR 41.0m (FY 2023: EUR 20.6m) materially supported EBITDA in the financial year 2024. In response the Company advanced its measures to save costs, reducing operating expenses by EUR 30.0m to EUR 250.3m (FY 2023: EUR 280.3m), whereas personnel expenses both in FY 2023 and FY 2024 included one-off effects stemming from the adjusted accounting method related to Earn-Out liabilities.

Successfully streamlined organisational set-up to strengthen collaboration and performance
The Company developed a new mid-term strategy 2030 and successfully streamlined its organisational setup in 2024 to become the go-to manager for smart Real Asset solutions. The new organisational set-up with the creation of an integrated Investment Division is designed to drive cross-divisional collaboration and accountability and strengthening the Company’s execution focus and performance culture. This included reorganisation measures leading to net negative reorganisation effects on EBITDA of EUR 10.9m, modestly below previous year’s level (FY 2023: EUR 15.8m).

Consolidated net profit attributable to shareholders of the parent company increased considerably in FY 2024 and came in at EUR 12.6m (FY 2023: EUR -4.3m).

Client activity picked up in second half of 2024
Investments in Real Assets have regained attraction in light of stabilising market fundamentals and overall decreasing interest rate levels. Client demand increased throughout the year 2024 resulting in significantly higher fundraising activity with equity raised nearly doubling to EUR 1.0bn (FY 2023: EUR 0.5bn). Compared to fundraising levels seen before 2023, the overall activity was still comparably low. Hence, the amount of open equity commitments available for investments via managed funds came down to EUR 1.3bn as at 31 December 2024 (30 September 2024: EUR 1.7bn) driven by utilisation of existing committed capital.

Assets under Management (AUM) developed in line with expectations with a slight decrease of 1.5% to EUR 56.4bn (31 December 2023: EUR 57.3bn). Despite the overall soft market activity PATRIZIA remained an active investor for its clients in infrastructure and real estate, deploying capital of EUR 1.8bn (closed acquisitions). On the opposite, realisations for clients amounted to EUR 1.1bn bringing the total transaction volume to EUR 2.9bn (FY 2023: EUR 3.4bn). In total resulting in a positive net effect on AUM (organic growth) of EUR 0.7bn. However, the transaction volume could not compensate the negative valuation effects of EUR -0.9bn (FY 2023: EUR -2.7bn) and cash returns to investors of EUR -0.6bn driving total AUM down year-over-year.

Shift in growth mode across all asset classes again
PATRIZIA expects 2025 being a decisive year of returning to growth on its journey towards reaching more than EUR 100bn AUM by 2030. Based on the gradual improvement already seen in the second half of 2024, investment activity is anticipated to further build momentum in FY 2025. Supporting factors are stabilising real asset values, stabilising inflation and a more favourable interest rate environment leading to higher risk-rewards – especially for investments in value-add real estate and infrastructure.

Based on the updated strategy PATRIZIA intends to leverage its attractive real asset offerings with a focus on large scalable discretionary flagship funds in real estate and infrastructure. In doing so the Company aims to further improve its earnings quality with a higher share of recurring fees advancing the Company’s resilience and profitability.

Financial outlook 2025
PATRIZIA expects AUM to close in a range between EUR 58.0 - 62.0bn at the end of 2025 driven by a more favourable market environment, with greater appetite for investments in real estate and infrastructure potentially leading to higher investment volumes. The Company expects to advance fundraising within its five key growth areas: Living, Value-add, Re-Infra & Smart City Solutions, European Infrastructure, and its independent Advantage Investment Partners platform.

Alongside the intention to further improve its platform efficiency by optimising processes and systems across all asset classes the Company will stay vigorously focusing on cost efficiency in 2025.

EBITDA is expected in a range between EUR 40.0 – 60.0m with an improved underlying earnings quality of its core business in FY 2025. The Company intends to achieve this through a gradual increase in total service fee income and further cost efficiency. Overall, those operational improvements should lead to an EBITDA margin in a range between 15.2 – 20.8%.

Continued strong balance sheet ratios allow to propose seventh consecutive increase in dividend per share
PATRIZIA’s Board of Directors will - based on a proposal by the Company’s Executive Directors - propose a dividend per share for FY 2024 of EUR 0.35 to shareholders. The proposal factors in the Company’s continued strong balance sheet ratios. If adopted by the Annual General Meeting in June 2025 this would reflect the seventh consecutive increase in dividend per share.

Management comments
Asoka Wöhrmann, CEO of PATRIZIA SE, said: „In our world in transition economic and social change is driven by four powerful DUEL megatrends: the digital, urban, energy and living transition. We will focus on five key growth areas that will accelerate our growth momentum in the next cycle: Living, Value Add, European Infrastructure, RE-infra and our independent multi-manager platform Advantage Investment Partners. Technology is a key driver for all megatrends and the convergence of real estate and infrastructure. Our expertise in technology-driven investments and our ability to integrate real estate and infrastructure will differentiate us as the partner of choice for future-focused portfolios and drive our growth in 2025 and beyond.”

Martin Praum, CFO of PATRIZIA SE, adds: “We managed our cost-base very effectively in 2024 and will continue to focus on our platform efficiency to advance the earnings quality and profitability of our business in 2025. We anticipate a return to organic growth in AUM especially based on institutional investors' renewed interest in real asset investment opportunities. At the same time, we will focus on safeguarding our balance sheet strength and financial flexibility.”

Link to preliminary financial results presentation: https://ir.patrizia.ag/en/

¹ FY 2023 restatement impacted EBITDA, staff costs and other income.

Overview of preliminary results

¹ Restated figures

² The calculation of AUM is mainly based on external valuation reports as at the respective reporting date. For individual products or specific platforms (i.e. fund of funds, infrastructure), values of the previous quarter are used, including an extrapolation as at the reporting date. The cash/liquidity component mainly reflects the previous quarter.

PATRIZIA: A leading partner for global real assets

With operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 41 years. PATRIZIA manages over EUR 55bn in assets and employs around 900 professionals at 26 locations worldwide. PATRIZIA has been making an impact since 1984 by helping children in need, since 1992 in close collaboration with Bunter Kreis (“colourful circle”) in Germany for aftercare of children with severe diseases and since 1999 through its support for the PATRIZIA Foundation. The PATRIZIA Foundation has given more than 750,000 children and young people worldwide access to education, healthcare, and a safe home to get the chance to live a better self-determined life over the last 25 years. You can find further information at www.patrizia.ag and www.patrizia.foundation