In This Article:
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Equity Raised: EUR0.7 billion, an increase of almost 170% year-on-year.
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Assets Under Management (AUM): Approximately EUR56 billion, virtually unchanged quarter-on-quarter.
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Transaction Volume: Over EUR2 billion, with 52% in real estate and 48% in infrastructure.
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Management Fees: Down 8.6% year-on-year; adjusted like-for-like down 4.5%.
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Transaction Fees: Up year-on-year, with expectations for a strong fourth quarter contribution.
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Performance Fees: Down year-on-year due to fewer realizations.
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Operating Expenses: Down close to 3% year-on-year.
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EBITDA: EUR13 million, down 73% year-on-year, impacted by a EUR13.4 million negative consolidation effect and EUR5 million in one-off costs.
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Available Liquidity: Approximately EUR120 million, slightly lower than the previous quarter.
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Net Equity Ratio: Over 60%.
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Full Year EBITDA Guidance: EUR30 million to EUR60 million.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Patrizia AG (WBO:P1Z) reported a significant increase in equity raised, with a 170% rise compared to the previous year, indicating positive investor sentiment.
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The company achieved over EUR1.3 billion in signed transactions, with a balanced distribution between real estate and infrastructure.
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There is an increased demand for infrastructure investments, particularly in the energy transition sector, which Patrizia AG is well-positioned to capitalize on.
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Patrizia AG's diversified asset base has shown resilience, with only a 5% decline in AUM from the market peak, which is favorable given the current market conditions.
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The company has implemented cost-cutting measures, resulting in a 3% reduction in operating expenses year-on-year, demonstrating effective cost management.
Negative Points
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Patrizia AG is operating in a subdued market environment with ongoing economic and geopolitical uncertainties, which could dampen recovery efforts.
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The office sector remains a challenged asset class due to structural changes in work demands, impacting Patrizia AG's portfolio.
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Overall revenues are down 13% year-on-year, primarily driven by a decrease in management and performance fees.
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EBITDA has significantly reduced by 73% to EUR13 million, affected by negative consolidation effects and one-off costs.
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Available liquidity has decreased to EUR120 million, down from EUR130 million in the previous quarter, due to strategic investments and asset warehousing.
Q & A Highlights
Q: What is the probability of the expected deconsolidation of the equity investment in the fourth quarter, and what is the share of the EUR13 million you could recover? A: Martin Praum, CFO, stated that there is a very high probability of the deconsolidation happening due to good fundraising momentum. The net effect on Patrizia after nine months was around EUR9 million, and they expect a reversal effect of approximately EUR8 million in the fourth quarter.