PATRIZIA, a leading partner for global real assets, today published its 9M 2023 financial results. While PATRIZIA’s operating business continued to be impacted by an environment of continued market uncertainty, high inflation and rising financing costs, the third quarter showed a solid performance driven by operating successes while being supported by other operating income.
AUM decreased moderately by 1.7% to EUR 58.2bn (31.12.2022: EUR 59.1bn) mainly due to negative valuation effects of EUR 1.8bn (or -3.1%) during 9M 2023. The comparatively small devaluation effects and general robustness of AUM are attributable to PATRIZIA’s broad geographical and sectorial diversification across real estate and infrastructure. In addition, PATRIZIA successfully signed and closed transactions on behalf of clients, supporting the development of AUM with EUR 1.3bn – this partially offset market induced valuation pressure.
Recurring management fees continued to grow by 2.0% to EUR 187.7m (9M 2022: EUR 184.1m) with a solid third quarter supported by client project development service fees and client debt structuring fees. Management fees represented more than 80.0% of total service fee income in 9M 2023.
At the same time the subdued market environment led to a decline of more than 30.0% in both transaction fees amounting to EUR 8.8m (9M 2022: EUR 14.5m) and in performance fees amounting to EUR 31.7m (9M 2022: EUR 49.8m). Subsequently, the continued growth in management fees could not fully compensate for the market-driven weakness, leading to an 8.1% lower total service fee income at EUR 228.3m (9M 2022: EUR 248.3m).
Net sales revenues and co-investment income declined to EUR 4.4m (9M 2022: EUR 7.9m), mainly due to the profitable sale of one of the last remaining balance sheet properties in the UK (Trocoll House) in the reference period.
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