PATRIZIA (PAT) H2 2024 earnings summary

Executive summary

• Navigated a challenging 2024 market with stabilized interest rates and inflation, launching Strategy 2030 with ambitious growth targets and a focus on infrastructure and living sectors.

• Fundraising activity nearly doubled year-over-year, raising EUR 1 billion in key growth areas, with infrastructure and living sectors as investor favorites.

• Continued expansion into international infrastructure, including investments in Italy, Portugal, the Philippines, and the USA.

• Net profit attributable to shareholders rose to EUR 12.6m from EUR -4.3m in FY 2023, reflecting improved profitability.

• Proposed dividend per share increased to EUR 0.35, marking the seventh consecutive annual increase.

Financial highlights

• Assets under Management (AUM) declined 1.5% year-over-year to EUR 56.4bn, with EUR 1.8bn in acquisitions mainly in growth areas and positive net organic growth.

• EBITDA reached EUR 45.1m, up 3.4% year-over-year, supported by cost efficiency measures and higher other income, despite a 15% decline in total service fee income.

• Operating expenses reduced by 11% to EUR 250.3m, mainly through headcount and operating expense cuts.

• Management fees fell 9% year-over-year to EUR 228.4m; performance fees dropped 54.5% to EUR 21.2m; transaction fees remained stable.

• EBITDA margin improved to 17.0% from 13.7% in FY 2023.

Outlook and guidance

• FY 2025 guidance anticipates AUM of EUR 58.0–62.0bn and EBITDA of EUR 40.0–60.0m, with an EBITDA margin between 15.2% and 20.8%.

• Targeting 6% AUM growth and 11% EBITDA growth at midpoint for 2025, focusing on organic growth and further cost efficiency.

• Client investment activity expected to gradually recover in H2 2025 as valuation pressure on real assets diminishes.

• Focus on five key growth areas: Living, Value-add, Re-Infra & Smart City Solutions, European Infrastructure, and Advantage Investment Partners.

• No major valuation effects included in 2025 planning; growth expected from more acquisitions than disposals.