Attractive products across all asset and risk classes
Our pan-European investment strategies are designed to best serve our clients' needs
EUR
46.2bn
Assets under management
sqm
77%
17.1m
Real estate assets
Resilient Core and
under management
Core plus strategies
14%
4%
4%
AUM by
7% geography
12%
59%
3% 7%
22%
12%
35%
AUM by
AUM by
sector
risk style
58%
16%
20%
26%
Germany
UK & Ireland
France & Belgium
Nordics
Netherlands
Other
Office
Residential
Core
Core plus
Logistics &
Retail
Industrial
Value add
Infrastructure
Other (Healthcare,
Hotel, etc.)
Data as at 9M 2020; AUM based on total real estate/infrastructure under management and administration; AUM by risk style based on vehicle level breakdown
Rockspring and TRIUVA are now part of the ONE PATRIZIA world
Net purchase price reconciliation| EUR m
Run-rate EBIT reconciliation| EUR m
35.4
22.0
349.3
313.9
40.0
18.0
Purchase
Extraordinary
Net purchase
Recurring
M&A
Run-rate
price
performance/
price
EBIT acquired
efficiencies2
EBIT acquired
transaction fees
2018 of acquired
entities after
M&A EBIT
taxes (25%
multiple 7.9x
assumption)1
ROCE3
12.7%
ROE4
14.3%
1 Not included in acquisition pricing | 2 Efficiencies realised, run-rate from 2019 | 3 Return on capital employed | 4 Return on equity based on equity ratio of 67% and tax rate assumption of 25%
Strategic global innovation and technology activities
Our mission is to increase operational excellence, tech leadership and develop new business opportunities in a client centric approach by:
Global and cross-industrial trend scouting
Identifying and implementing innovative technologies
Strategic investments into selected companies
Constantly challenging the business model, processes and mindsets
Ecosystem
How will our business
model look like in future?
Product
Processes
Corporate
We have a strong partnership approach with our technology investments, as we believe open collaboration is most effective in supporting the establishment of industry solutions and transformation!
Creating an environment for education for more than 20 years
What we are doing
Initiating child cares, hospitals and schools to give children a safe home, health and access to education
Focusing on building communities for a future-oriented development
Using sustainable and regional materials as part of the philosophy
Our success
17 children centers in 11 countries (4 continents)
More than 220,000 children have benefited from the foundation
What we want to achieve
Growing to help as many children as possible - worldwide
Supporting the chance for a self-determined life
Overall: Creating tales of joy
Our approach and promise
100% of the donations go into the projects
PATRIZIA AG supports the foundation with up to 1% of the operating income which covers all administrative costs
Volunteering as part of the corporate culture benefits the foundation
Helping in the crisis
In April 2020, the "Corona Fund Education Healthcare" was initiated to support our Children's Centers which experience existential hardships due to the coronavirus pandemic.
Example: Primary School extension Buyamba, Uganda
Expand existing PATRIZIA Primary School in Buyamba (approx. 900 students) by 5 classrooms, 2 early childhood rooms, a kitchen,
a dormitory with 40 beds, 3 teacher accommodations and 5 cisterns
PATRIZIA is listed in the Prime Standard segment of Deutsche Börse AG and member of the SDAX, DIMAX, MSCI World Small Cap and other indices1
Initial listing on 31 March 2006
Market capitalisation as at 30.09.2020: EUR 2.1bn
Average daily trading volume: ~94,526 shares
89,682,931 shares outstanding
2013 2014 2015 2016 2017 2018 2019 2020
Analyst recommendations |as at 09.11.2020
Shareholder structure |as at 09.11.2020
8
5.87%
2.89%
First Capital Partner GmbH 2
∅ target price:
Union Investment Privatfonds GmbH 3
EUR 25.55
Allianz SE 4
29.39%
51.81%
2
resulting upside6:
Other institutional shareholders
0
+19.1%
Private shareholders
5.02%
PATRIZIA AG 5
BUY
HOLD
SELL
5.02%
Source: Thomson Reuters, PATRIZIA share register | 1 CDAX, Classic All Share, DAX International Mid 100, DAXplus FAMILY 30, DAXsector Financial Services, DAXsubsector Real Estate, Prime All Share, S&P GIVI Global Index, S&P Global BMI, S&P Intrinsic Value Weighted Global Index , S&P Low Beta Global Index | 2 First Capital Partner GmbH is attributable to CEO Wolfgang Egger | 3 According to the voting rights notification of 31 October 2018 | 4 According to the voting rights notification of 13 March 2020 | 5 Treasury shares | 6 Based on closing price of EUR 21.45
Leverage existing platform offering governance, research, capital raising and market services - bolt on boutiques
Core
Core +
Value-add Opportunistic
Equity
Real Estate
Debt
Private
Public
Equity
Infrastructure
Debt
Expansion into additional segments is the natural next step in the evolution of PATRIZIA
Equity = Strategies that target investment in real assets equity tranche; Secondaries = Strategies that target investment in secondary units of existing real assets funds/partnerships/joint ventures/or other relevant investment structures; Debt = Strategies that target investment in real assets debt tranche
Operating income of EUR 100.2m in 9M 2020, already reaching the lower end of the broadened FY 2020 guidance range
Assets under management (AUM) increased by 4.0% to EUR 46.2bn compared to EUR 44.5bn at YE 2019 and confirms resilience of AUM in challenging market environment
Total service fee income increased by 6.2% y-o-y to EUR 248.1m, driven by continued growth in management, transaction and performance fees
Full-year guidance 2020
Operating income guidance for FY 2020 specified to EUR 110.0m to 130.0m
Level of FY2020 guidance achievement will depend on further Covid-19 pandemic impact on European real estate transaction markets during Q4 2020
Organic net AUM growth expectation of EUR 2.0 - 3.5bn to between EUR 46.5 - 48.0bn unchanged
+4.0%
46.2
46.5 - 48.0
44.5
1.1
1.2
Fund of funds
45.1
43.2
Funds under
management
31.12.2019 30.09.2020 2020e
Operating income | EUR m
110.0 - 130.0
97.7 +2.6% 100.2
9M 2019
9M 2020
2020e
1 AUM definition from 3M 2020 onwards reflecting best practice standards like INREV / GIPS
Note: All percentage rates in this presentation refer to the comparable period of the previous year, unless stated otherwise
Continued growth in management, transaction and performance fees
Highlights
Total service fee income increased by 6.2% y-o-y to EUR
248.1m (9M 2019: EUR 233.7m) driven by:
IncreasedManagement fees of EUR 145.0m (+2.4%)
Transaction fees significantly up to EUR 29.1m (+23.7%) due to ongoing selective transaction activity for clients
Performance fees remained a stable contributor to operating income with EUR 74.1m (+8.0%);
Net sales revenues andco-investmentincome of EUR 14.4m:
Co-investments contributed EUR 12.5m
Composition 9M 2020 | EUR m
-24.4%
+4.4%
+8.0%
14.4
74.1
+23.7%
-153.7
+2.4%
29.1
+9.1%
+2.6%
-8.7
Principal investments contributed EUR 1.9m
Net operating expenses1up 4.4% to EUR 153.7m mainly due to higher IT and personnel expenses as a result of continued investments into PATRIZIA's real asset platform - cost growth nevertheless remains below growth of total service fee income
PATRIZIA is still active for its global client base despite challenging Covid-19 market environment
Highlights
Ongoing transaction activity for PATRIZIA's global client base drovetransaction fee growth to EUR 29.1m in 9M 2020 (+23.7%)
European transaction activity was slowly picking up in Q3 2020, but still down 18.7% y-o-y
The FY 2020 guidance range for transaction fees was specified upwards to EUR 36.0 - 47.0m for FY 2020 (from EUR 30.0 - 40.0m)
Transaction volume (closed/signed) | EUR bn
closed
9.0
signed
Ø EUR
7.2
3.5
5.9bn
6.0
5.2
4.8
5.1
4.1
3.0
2.5
2.6
0.5
1.9
2.8
0.7
5.0
5.5
1.1
4.3
4.2
-
3.4
3.2
3.5
1.5
2.5
4.0
2013
2014
20152
20162
2017
2018
2019
9M
2020e
Acquisitions
Disposals
2020
European transaction volume| EUR bn1
Transaction fees | EUR m
• Transaction activity in Europe dropped 18.7% y-o-y in 9M 2020
Ø EUR
70.3
57.8m
65.3
58.7
22.2
330.9
290.9 328.4
315.0
344.5
54.1
52.2
51.8
52.4
23.9
246.1
17.0
17.7
26.7
20.3
21.7
29.1
200.9
172.3
48.1
47.0
11.5
37.1
34.5
32.0
31.4
30.7
41.4
-
17.5
36.0
2013
2014
2015
2016
2017
2018
2019
9M
2013
2014
2015
2016
2017
2018
2019
9M
2020e
2020
Acquisition fees
Disposal fees
2020
1Source: PATRIZIA, RCA All Property |2 2016 transaction volume includes sale of Harald portfolio worth EUR 1.1bn; 2015 includes sale of SÜDEWO and acquisition of Harald portfolio totalling EUR 2.5bn
Superior returns for clients translate into attractive performance fees
Performance fees of EUR 74.1m in 9M 2020 as a stable contributor to overall financial results
Performance fee guidance for FY 2020 specified to EUR 80.0 - 90.0m (from EUR 80.0 - 110.0m) as Q4 2020 will likely include more acquisitions than disposals for clients on the European transaction market (disposals typically trigger generation of performance fees)
Distribution of net IRRs by invested equity1
Performance fees | EUR m
6.0% median IRR
10.5%
12,000
weighted IRR
10,000
8,000
6,000
4,000
2,000
0
< 0%
0-4%
4-8%
8-12%
12-20%
> 20%
Core
Core+
Value add
Opportunistic
80.0 - 90.0
68.6 +8.0% 74.1
9M 2019
9M 2020
2020e
1 Data as at 30 June 2020 return distribution includes performance of institutional investor vehicles with an invested equity exceeding EUR 50m and inception before 03.2020, in total EUR 34.6bn; past performance is not indicative of future results; returns weighted by invested equity; returns are presented including leverage, net of costs, taxes and fees.
Visibility until 2025 due to Dawonia performance fee claims
Performance fee pool1 - Illustrative example | EUR m
Due to performance fee claim on Dawonia3of EUR 362.3mpre-tax(EUR 295.3m after tax; see also page 44), good visibility on overall performance fee income over the next years
Operating income contribution from performance fees over next five years depends on client preferences and disposal activity in funds
72.5
72.5
72.5
72.5
72.5
Ø
52.9
2013-2020e
2021e
2022e
2023e
2024e
2025e
Performance fees p.a. on average
Performance fee potential from other funds
Dawonia performance fee claim due in 2023 (pre tax) if split over 5 years
The teamPATRIZIA GrundInvest celebrates its
5th anniversary.
The investment volume is over 1 billion Euro.1
More than7,000 participations were made by investors.1
Average payout of 4.3 % p.a. in 2020 across all funds (equally weighted).1
Average occupancy rate of 97.62 % across all funds (equally weighted).2
Development of the property values of the public funds(managed by PATRIZIA GrundInvest) shows a positive trend since business started in 2015.1
Expansion of the Fund "Europe Residential Plus"
Acquisition of additional properties
Increase in fundraising
Development of anew additionalproduct-linefor retail investors
1 Data as at 09/2020
2 Data as at 08/2020
Development of the property values of the public funds
(managed by PATRIZIA GrundInvest)
Index 2015 = 100
42
Appendix
Top 10 EU investment managers
Investors' preference for diversification drives European consolidation
EUR 23.7bn
Increase by +96%
EUR 46.5bn
Average AUM
Average AUM
of the Top 10 in 2012
of the Top 10 in 2018
Pos.
Investment Manager
AUM (EUR)
1
AXA Real Estate
42bn
2
CBRE Global Investors
39bn
3
Aviva Investors
28bn
4
Aberdeen Asset Management
23bn
5
IVG Immobilien AG
20bn
6
AEW Global
19bn
7
UBS Global Asset Management (UK)
17bn
8
RREEF Real Estate
17bn
9
Prudential Property Investment Managers
17bn
10
LaSalle Investment Management
15bn
Pos.
Investment Manager
AUM (EUR)
1
Swiss Life Asset Managers
69bn
2
AXA Investment Managers - Real Assets
66bn
3
Blackstone
46bn
4
Aberdeen Standard Investments
46bn
5
Credit Suisse Real Estate Investment Mgt.
45bn
6
CBRE Global Investors
45bn
7
PATRIZIA1
45bn
8
Aviva Investors
39bn
9
Deka Immobilien Investment/WestInvest
36bn
10
M&G Real Estate
32bn
Source: www.irei.com; only assets in Europe | 1 PATRIZIA as at FY 2019, including a small portion of non-European assets via PATRIZIA Multi Managers; ranking adjusted accordingly
The information contained herein is directed only at professional clients and intended solely for use by the recipient. No part of this document or the information herein may be distributed, copied or reproduced in any manner, in whole or in part, without our prior written consent. This document is for information and illustrative purposes only. It does not constitute advice, a recommendation or a solicitation of an offer to buy or sell shares or other interests, financial instruments or the underlying assets, nor does this document contain any commitment by PATRIZIA AG or any of its affiliates. Whilst prepared in good faith, the information contained in this document does not purport to be comprehensive. PATRIZIA AG and its affiliates provide no warranty or guarantee in relation to the information provided herein and accept no liability for any loss or damage of any kind whatsoever relating to this material. The information herein is subject to change without notice.
This document contains specific forward-looking statements that relate in particular to the business development of PATRIZIA AG and the general economic and regulatory environment and other factors to which PATRIZIA AG is exposed to. These forward-looking statements are based on current estimates and assumptions by the Company made in good faith, and are subject to various risks and uncertainties that could render a forward-looking estimate or statement inaccurate or cause actual results to differ from the results currently expected. PATRIZIA AG does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this publication. Due to commercial rounding of figures and percentages small deviations may occur.
Patrizia Immobilien AG published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 15:16:00 UTC
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