Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Patrizia AG (WBO:P1Z) Q2 2024 Earnings Call Highlights: Navigating Revenue Pressures and ...

In This Article:

  • Assets Under Management (AUM): Decreased by 2% year-to-date and 3% compared to last year.

  • Management Fees: Down 4.2% year-on-year, primarily due to lower AUM valuation and reduced development service fees.

  • Transaction Fees: Increased by almost 20% compared to last year, mainly from disposals.

  • Performance Fees: Down nearly 40% year-on-year, contributing to a drop in EBITDA.

  • Revenue: Overall revenue down approximately 10% compared to last year.

  • Staff Costs: Reduced by 2.5% year-on-year.

  • Other Operating Expenses: Down 2.4%, with a one-off item of close to EUR4 million.

  • EBITDA: Impacted by one-off items and consolidation effects, with a EUR3 million negative impact in the first half of the year.

  • Equity Ratio: Stable at close to 58%.

  • Net Debt Position: Shifted from a net cash position due to strategic investments.

  • Available Liquidity: EUR133 million, with cash and term deposits at EUR216 million.

  • Guidance for Full Year EBITDA: Unchanged, with expectations to be in the lower to mid-range of EUR30 million to EUR60 million.

Release Date: August 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Patrizia AG (WBO:P1Z) has set an ambitious vision for 2030, aiming to become a EUR100 billion AUM manager, focusing on smart real asset solutions.

  • The company has identified key growth areas, including living, value-add real estate, European infrastructure, and smart cities, which are expected to drive future growth.

  • Patrizia AG (WBO:P1Z) plans to raise EUR30 billion of equity across its five key investment strategies over the next five years.

  • The company is focusing on enhancing earnings quality by transitioning to a sustainable recurring fee-earning business model.

  • Patrizia AG (WBO:P1Z) has a strong balance sheet and plans to leverage its existing expertise and capabilities without relying on M&A for growth.

Negative Points

  • AUM decreased by 2% year-to-date and 3% compared to the previous year, driven by valuation pressures.

  • Management fees are down 4.2% year-on-year, primarily due to lower AUM valuation and reduced development service fees.

  • Performance fees have decreased by almost 40% year-on-year, contributing to a drop in EBITDA.

  • The company is currently experiencing revenue pressure, with overall revenues down 10% compared to last year.

  • Patrizia AG (WBO:P1Z) is facing challenges in achieving profitability, with a reliance on one-off items and consolidation effects impacting EBITDA.

Q & A Highlights

Q: What would be the adjusted EBITDA for the first half without one-off effects? A: Martin Praum, CFO, explained that the first half EBITDA of EUR19.2 million includes a EUR4 million one-off item. Without this, the adjusted EBITDA would be in the EUR20 million-plus range.