Patrizia exceeds its profit forecast for the 2016 financial year
PATRIZIA Immobilien AG,the pan-European investment manager in the real estate market, announced that the company continued its successful growth in 2016 as a leading property investment manager in Europe. The company has exceeded its profit forecast for the 2016 financial year significantly following a strong performance in the fourth quarter. The three months until 31 December 2016 were characterised by increased transaction volumes and the realisation of higher performance fees from the successful management of real estate investments.
Following a total operating income of EUR 155 million for the 2015 financial year, the total operating income for 2016 is expected to rise to EUR 283 million, exceeding the most recent forecast of at least EUR 265 million. A major contributor to the strong results was the increase in fee income for the management of property assets for PATRIZIA investors. Total management fees increased by 14 per cent to EUR 189 million in 2016 from EUR 165 million in 2015. “The size and quality of PATRIZIA’s results in recent years confirms the successful implementation of the European strategy and the scalability of the operational platform,” says Karim Bohn, Chief Financial Officer of PATRIZIA Immobilien AG.
In 2016, PATRIZIA was able to realise and close real estate transactions totalling EUR 5.1 billion. Across Europe, residential and commercial real estate worth more than EUR 3.2 billion was acquired for the various investment vehicles managed by PATRIZIA, while the sale of properties generated EUR 1.9 billion. Assets under management increased from EUR 16.6 billion as of 31 December 2015 to EUR 18.6 billion by year end 2016. In addition, transactions of EUR 2.1 billion were signed in 2016, of which EUR 1.7 billion of acquisitions and EUR 0.4 billion of sales, the majority of which are expected to close in 2017.
In total, EUR 2.2 billion of funds were raised globally from investors in 2016 – significantly more than the EUR 1.5 billion in 2015. Around EUR 0.4 billion was raised from institutional investors outside Europe, particularly Asia. “This achievement demonstrates that PATRIZIA is today perceived as one of the leading investment managers in Europe and first choice for European investments, including for global investors,” says Bohn. Today, more than 200 institutional investors invest in real estate with or through PATRIZIA, with the number of international investors significantly increasing year on year.Further details on PATRIZIA’s earnings will be announced when the annual report is published on 14 March 2017.