Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  Patrizia AG    PAT   DE000PAT1AG3

PATRIZIA AG

(PAT)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Patrizia : Company Presentation November 2020

11/12/2020 | 10:17am EST

FOR CLIENTS AND SHAREHOLDERS

Company Presentation

9M 2020 | November 2020

Agenda

  • Equity Story
  • Financials 9M 2020
  • Appendix

PATRIZIA | © 2020

2

Equity Story

A leading partner for global real assets

Strong track record built over the past 36 years

36

>46bn

Top 10

years of real estate

assets under

investment manager

experience

management (EUR)

in Europe1

Strong local presence:

Strong performance:

Strong potential:

24

~11%

627m

offices globally

average IRR for

available liquidity

serving our clients

investments in Europe

for investments (EUR)

Data as at 9M 2020 | 1 According to leading industry ranking by PropertyEU and Institutional Real Estate, both issued in 2019

PATRIZIA | © 2020

3

Equity Story

PATRIZIA's growth driven by client demand

AUM growth directly translates into growing and strongly recurring management fees

70

450

60

348.0

308.0 - 335.0

+25.0% p.a.

320.2

50

Total service fee

300

income1

198.0

40

211.9

-

188.6

30

165.2

175.3

190.9

192.0

+27.1% p.a.

140.0

Management fees1

150

20

117.5

81.5

89.1

93.2

68.1

72.8

50.1

48.0

10

35.6

+30.5% p.a.

-

6.9

11.8

14.6

16.6

18.6

21.9

41.0

44.5

46.5

AUM growth

0

0

2012

2013

2014

2015

2016

2017

2018

2019

2020e

AUM (EUR bn)

Management fees (EUR m)

Total service fee income (EUR m)

1 Fee income growth below AUM growth as DAWONIA management fee is not linked to AUM

PATRIZIA | © 2020

4

Equity Story

Predictable management fees and diversified client base

74% of our AUM have a maturitiy of more than 10 years

Maturity breakdown of AUM1

Equity commitments by clients2

78%

7%

14%

5%

74%

63%

49%

30%

21%

7%

>10 years/unlimited

5-10 years

2-5 years

<2 years

Top 1

Top 5

Top 10

Top 25

Top 50

Top 100

Client

Clients

Clients

Clients

Clients

Clients

1 Data as at 9M 2020 based on legal maturities of fund structures | 2 Data as at FY 2019 based on total equity commitments of active vehicles

PATRIZIA | © 2020

5

Equity Story

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

PATRIZIA | © 2020

6

Equity Story

A critical success factor: Local & sector expertise

Creating alpha in today's market requires insights, patience, local knowledge & active management capabilities

Outstanding screening and execution skills

>6,400

deals screened

(2019)

>109

~3days

transactions made

on average 1 transaction

(2019)

completed every 3 days

Pan-European transactions, asset and development teams

Stockholm

Manchester

Copenhagen

Hamburg

Dublin

Amsterdam

Thames Valley

Berlin

Warsaw

London

Frankfurt

Brussels

Augsburg (HQ)

Paris

Zurich Munich

Milan

Madrid

Information as at FY 2019 Local Asset & Development Management professionals (incl. local country teams) Transactions professionals

PATRIZIA | © 2020

7

Equity Story

Long-term structural growth market

We are benefiting from the structural growth market for real estate investment management, despite short-term uncertainties

Demographic change

Aging population threatens conventional pension systems

Lower for longer

Low interest rate environment is here to stay

Consolidation

Clients focus on selected pan-European platforms with broad product offering

Our clients' capital is growing and hungry for yield

Increasing allocations to real estate (perceived resilient)

Clients reduce number of investment managers and seek reliable partners

PATRIZIA | © 2020

8

Equity Story

Investors' expectations are growing

Investors want more asset classes, bigger tickets and more global reach with preferred partners

2019:

USD 151.0bn

Record high in capital raised for Real Estate

USD 43.5bn

Combined volume three largest RE funds

39.0%

Drop in funds closed (only 295)

USD 625.0m

Growing average fund size

Source: Preqin - Real Estate Fundraising Sets New Records in 2019, Jan 2020

PATRIZIA | © 2020

9

Equity Story

Proven track record of accretive acquisitions

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%

PATRIZIA | © 2020

10

Equity Story

Top investment managers accelerate growth

AUM of leading real estate investment managers have more than doubled since 2012

To be a top 10 RE investment manager in 2023 you likely need:

AUM

EUR >60.0bn in Europe

EUR >140.0bn

EUR >140.0bn globally!

//

AUM

EUR 71.0bn

AUM

EUR >60.0bn

AUM

AUM

EUR 34.0bn

EUR 32.0bn

AUM

EUR 15.0bn

No. 10

No. 10

No. 10

No. 10

No. 10

No. 10

Manager

Manager

Manager

Manager

Manager

Manager

Europe

worldwide

Europe

worldwide

Europe

worldwide

2012

2018

20231

Source: www.irei.com (Manager Europe); IPE Top 100 Manager worldwide | 1 PATRIZIA estimates

PATRIZIA | © 2020

11

Equity Story

Relative attractiveness of real estate remains high

  • but record low bond yields mean, that there may be a ceiling to the yield gap now

Bond-Yield-Gap

600

Office Spread BP

Retail Spread BP

Logistics Spread BP

500

400

300

200

100

0

-100

2000 Q4

2002 Q4

2004 Q4

2006 Q4

2008 Q4

2010 Q4

2012 Q4

2014 Q4

2016 Q4

2018 Q4

Source: PATRIZIA, Refinitiv, PMA

PATRIZIA | © 2020

Equity Story

Investment pressure continues

Global under-allocation to real estate continues to drive growth

By type of investor

Allocations

Average allocation to real estate | as % of overall portfolio

Increase

63.6%

Maintain

28.1%

Current allocation

Target allocation

Decrease

8.3%

12.40%

11.00%

11.50%

Investment style preferences

10.10%

9.60%

Value add

42.5%

7.80%

Core

37.5%

Opportunistic

20.0%

2020e

EUR 98.1bn of new capital is expected to be invested into the global real estate sector in 2020

Pension Fund

SWF/Govt' Inst

Insurance Company

Source: ANREV / INREV / PREA Investment Intentions Survey 2020; survey among 140 institutional investors, managing EUR 703.4bn real estate AUM

PATRIZIA | © 2020

13

Equity Story

Yield development

Office and logistic yields were moving sideways in the past quarters, retail shows an increasing trend

Office

Retail

Logistics

Yield range

Yield range

Yield range

European Prime Yield

European Prime Yield

European Prime Yield

Long-term mean

Long-term mean

Long-term mean

10.0%

10.0%

10.0%

9.5%

9.5%

9.5%

9.0%

9.0%

9.0%

8.5%

8.5%

8.5%

8.0%

8.0%

8.0%

7.5%

7.5%

7.5%

7.0%

7.0%

7.0%

6.5%

6.5%

6.5%

6.0%

6.0%

6.0%

5.5%

5.5%

5.5%

5.0%

5.0%

5.0%

4.5%

4.5%

4.5%

4.0%

4.0%

4.0%

3.5%

3.5%

3.5%

3.0%

3.0%

3.0%

2.5%

2014 Q4

2016 Q4

2018 Q4

2.5%

2.5%

2000 Q4

2002 Q4

2004 Q4

2006 Q4

2008 Q4

2010 Q4

2012 Q4

2000 Q4

2002 Q4

2004 Q4

2006 Q4

2008 Q4

2010 Q4

2012 Q4

2014 Q4

2016 Q4

2018 Q4

2000 Q4

2002 Q4

2004 Q4

2006 Q4

2008 Q4

2010 Q4

2012 Q4

2014 Q4

2016 Q4

2018 Q4

Data as at 30.06.2020 | Source: PATRIZIA, PMA

PATRIZIA | © 2020

14

Equity Story

Global clients with a strong European base

Partnerships with a diverse mix of global institutional investors foster our understanding of clients' needs

1% 9%

Pension funds

Insurance

7%

companies

11% >400

44%

Savings banks

Banks, endowments

institutional

investors

& corporates

27%

Private investors

Other

14%

Germany

>20

10%

UK & Ireland

10% geographies

Rest of Europe

67%

Rest of World

Data as at 9M 2020 PATRIZIA client relationship offices

  • Markets with existing institutional investors and/or PATRIZIA client relationship operations

PATRIZIA | © 2020

15

Equity Story

Leading capital raising activity in the market

PATRIZIA has invested significantly in its capital raising capabilities over the past years and is now reaping the rewards

73%

of equity raised

from existing clients

EUR bn

~12

of equity raised

2015-2019

Institutional equity raised | EUR m

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2015

2016

2017

2018

2019

New clients

Existing clients

Data as at FY 2019 | Leading: Positioned among Top 3 based on own competitor research | Equity raised including predecessor companies

PATRIZIA | © 2020

16

Equity Story

Investment Ecosystem

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!

Data as at H1 2020

PATRIZIA | © 2020

Selected Investments

BrickVest (February 2020)

  • PATRIZIA acquires the platform, securing BrickVest's independence
  • Global and open digital investment platform for real asset investments
  • Connecting investor groups with deal sponsors and product providers

WiredScore (September 2019)

  • PATRIZIA secures strategic stake
  • Rating scheme for digital connectivity of commercial & residential properties
  • Established and trusted benchmark in the built world

Cognotekt (July 2019)

  • PATRIZIA acquires strategic stake
  • Using state-of-the-art Natural Language Processing to increase accuracy in data and document processing
  • Enables PATRIZIA to leverage it's AI competency

control.IT (May 2019)

  • PATRIZIA acquires a strategic stake together with KGAL and HIH
  • Leading service provider for asset and portfolio management software
  • Creating standardised best-in-class SaaS solution for the real estate industry

EVANA (October 2018)

  • PATRIZIA acquires strategic stake
  • AI-drivenservice provider for document, data and process management
  • Self-learningalgorithms to extract and evaluate large volumes of data

17

Equity Story

Selected indirect investments

Expanding PATRIZIA's global innovation ecosystem through investments in Venture Capital Funds

Pi Labs

Taronga Ventures

Camber Creek

Description

UK Based PropTech Venture

Capital Fund

Geographic Focus

Europe

Investment Stage

pre-seed to Series A

Complimentary Offering

In-house

accelerator programme

Track Record

3 funds launched

51 portfolio investments

Rationale

PATRIZIA increases access to

innovative real estate

technologies across Europe at

an early stage

Australia Based PropTech

US Based PropTech Venture

Venture Capital Fund

Capital Fund

Asia Pacific & Global

North America

Series A, B & C

75% Seed/Series A, 25% Series

B/C

Inhouse

In-house beta lab for piloting

accelerator programme

solutions

Advisory mandate for Super

3 funds launched

Fund

22 portfolio investments

6 Portfolio Investments

PATRIZIA increases access to

PATRIZIA increases access to

innovative real estate

innovative real estate

technologies across Asia-

technologies across North

Pacific and globally

America

PATRIZIA | © 2020

Equity Story

Social centrepiece: PATRIZIA Foundation

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

Data as at 9M 2020 | For further information, please visit: https://www.patrizia.foundation/en/

PATRIZIA | © 2020

19

Equity Story

Stronger for clients and shareholders

PATRIZIA share performance | as at 09.11.2020

30 30.00

Closing price

YTD

L6M

L12M

EUR 21.45

+7.1%

+7.6%

+16.4%

25

25.00

20

20.00

15

15.00

10

10.00

5.00

EUR/share

0.00

PATRIZIA on the capital market

  • 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

PATRIZIA | © 2020

20

Equity Story

Growing dividends in line with our business development

Increase in dividend per share by 7.4% y-o-y for FY 2019

Dividend per share (EUR)

Dividend policy FY 2019 onwards

0.29

X%

Y%

0.27

+7.4%

Basis for

dividend

proposal

FY 2018

FY 2019

Growth in management

Growth in AUM

fees (y-o-y)

(y-o-y)

PATRIZIA | © 2020

21

Equity Story

Strategy 2023 | A clear strategy…

Our aspiration for the next 3 - 5 years

Expand investment opportunities

Broad diversification through more geographies, more real assets & real estate debt

Strengthen footprint

Leading market insights through more international offices & more sector expertise

Build efficient platform

Best-in-classback-office & reporting based on smart IT, AI & automated services

Drive innovations

Early mover through anticipating market trends and changing tenant & client behaviour

Enhance stability

Reliable partner based on strong balance sheet, strong brand & increasing recurring income

PATRIZIA | © 2020

22

Equity Story

…makes PATRIZIA stronger for clients & shareholders

Our aspiration for the next 3 - 5 years

1

Real assets investment manager

2

3

4

More diversified product offering

Larger international client base

Early mover in automation & technology

5 Stable income & higher company value

PATRIZIA | © 2020

23

Equity Story

Strategic Agenda | Expansion across 4 quadrants

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

PATRIZIA | © 2020

24

Equity Story

Over 3-5 years AUM could increase by ~15% p.a. incl. M&A…

AUM of EUR 60bn organically and EUR 80bn incl. M&A are achievable

EUR ~80.0bn

Illustrative example

EUR ~60.0bn

EUR 44.5 bn

3 - 5

2019

years

Strategic

target

PATRIZIA | © 2020

25

Equity Story

  • and directly translate into growth of fee income

Management fees could increase by 8 - 10% p.a. organically

Illustrative example

Performance fees

EUR 91.8m

(hist. Ø: EUR 60.0m p.a.)

Transaction fees

(hist. Ø: EUR 55.0m p.a.)

EUR ~250.0m

EUR 65.3m

EUR 190.9m

Management fees

3 - 5

years

2019Strategic target

PATRIZIA | © 2020

26

Equity Story

Strategy for our clients spurs further growth

Organic and inorganic growth lead to stronger platform

Status Quo

Measure

Mid-term target

Assets under

Management

EUR 44.5bn

Grow 8 - 10% p.a. organically

EUR 60.0bn

Structural growth market

Mergers & Acquisitions

EUR 44.5bn

Grow 15.0% p.a. (in)organically

+EUR 20.0bn

Active industry disruptor

Total EUR 80.0bn

Quality of earnings

Improve qualitiy of earnings by

57.0%1

growing share of management

>70.0%1

Increase share of recurring

fees

earnings

Efficiency

EBITDAR margin²: 36.7%

Scalability

Stable EBITDAR margin,

but higher quality earnings

Digitalisation and scalability

Total cost ratio: 0.53%

Innovation & digitalisation

Total cost ratio: <40 bps

Larger scale, improved earnings quality and reduced costs

Stronger for clients and shareholders

1 Management fee share of total service income | 2Excluding principal investments

PATRIZIA | © 2020

27

Agenda

  • Equity Story
  • Financials 9M 2020
  • Appendix

PATRIZIA | © 2020

28

Financials 9M 2020

Highlights

Solid financial results despite challenging market environment - FY 2020 guidance specified

9M 2020

Assets under management1 | EUR bn

  • 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

PATRIZIA | © 2020

29

Financials 9M 2020

Operating income

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:
    • Increased Management 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 and co-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 expenses1 up 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

145.0

97.7

9M 2019

Operating

Manage-

Trans-

Perfor-

income

ment

action

mance

fees

fees

fees

Total service fee income

EUR 248.1m; +6.2%

100.2

9M 2020

Net sales

Net

D&A,

Operating

revenues

operating

financial

income

and co-

expenses1

result and

investment

other items

income

change y-o-y

1 Inter alia netted against other operating income of EUR 11.5m; excluding EUR 5.8m non-capitalisable expenses for investments in the future PATRIZIA | © 2020

30

Financials 9M 2020

Total service fee income

PATRIZIA continues to grow while still delivering superior investment performance for clients

Highlights

  • Total service fee income increased by 6.2% y-o-y to EUR 248.1m (9M 2019: EUR 233.7m)
  • Increased Management fees of EUR 145.0m (+2.4%) due to organic growth of AUM
    • Recurring management fees contributed 58.4% to total service fee income
    • Fees are partly included in revenues (EUR 137.9m) and partly in income from participations (EUR 7.1m)
  • Transaction fees significantly up to EUR 29.1m (+23.7%) due to ongoing selective transaction activity for clients
    • Acquisition fees: EUR 17.5m vs disposal fees: EUR 11.5m
  • Performance fees of EUR 74.1m in 9M 2020 as a stable contributor to overall financial results and partly included in:
    • Revenues (EUR 48.5m)
    • Income from participations (EUR 16.6m)
    • Operating income from participations (EUR 9.0m)
  • Guidance for FY 2020:
    • Total service fee income of EUR 308.0m - EUR 335.0m

1 EUR 165.2m excluding SÜDEWO performance fee | 2 At mid-point of guidance range PATRIZIA | © 2020

Total service fee income | EUR m

100%2

348.0

320.2

308.0 - 335.0

268.6

91.8

90.0

29%

92.5

248.1

-

80.0

103.4

47.0

11%

211.9

65.3

188.6

74.1

-

52.4

36.0

29.2

66.9

140.0

25.0

29.1

117.5

19.7

70.3

51.8

198.0

60%

13.4

58.7

52.2

175.3

190.9

-

54.1

145.0

192.0

50.1

68.1

81.5

89.1

93.2

2013

2014

20151

2016

2017

2018

2019

9M

2020e

2020

Management fees

Transaction fees

Performance fees

SÜDEWO performance fee

31

Financials 9M 2020

Transaction fees

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 drove transaction 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

1 Source: 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

PATRIZIA | © 2020

32

Financials 9M 2020

Performance fees

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.

PATRIZIA | © 2020

33

Financials 9M 2020

Performance fees

Visibility until 2025 due to Dawonia performance fee claims

Performance fee pool1 - Illustrative example | EUR m

  • Due to performance fee claim on Dawonia3 of EUR 362.3m pre-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

PATRIZIA | © 2020

34

Financials 9M 2020

Profitability and costs

Continued efficiency improvements propel profitability and cost ratios

AUM vs total cost ratio | EUR bn vs %

EBITDAR margin (+/- principal investments) | EUR m, LHS vs %1

50

46.5 - 48.0 1%

180

50.0%

45

1.21%

46.2

41.4%

1%

160

42.9%

45.0%

44.5

38.7%

38.9%

34.0 - 41.0%

40

41.0

140

34.8%

40.0%

0.97%

0.98%

35

1%

33.9%

39.0%

41.0%

0.82% 0.80%

120

30.4%

36.2%

36.7%

35.0%

30

1%

23.8%

28.8%

30.0%

100

25

0.49

25.0%

-

20

21.9

0.53%

0.53%

1%

80

20.0%

0.45%

0.46

18.2%

18.6

60

15

16.6

0%

15.0%

14.6

13.3%

40

10

11.8

9.6%

10.0%

0%

5

20

5.0%

0

0%

0

20152 20163 2017

0.0%

2013

2014

2015

2016

2017

2018

2019

9M

2020e

2013

2014

2018

2019

9M

2020e

2020

2020

AUM

EBITDAR

incl. principal

EBITDAR

excl. principal

Total cost ratio (in %)

Margin (in %)

investments

Margin (in %)

investments

• Total cost ratio = Net operating expenses (incl. staff costs) divided

Margin transformation of business model completed,

by average AUM

i.e. from volatile principal investment to stable service fee income

1 EBITDAR values slightly adjusted compared to IFRS P&L in order to enable better operational like-for-like comparison | 2 2015 excluding SÜDEWO exit fee | 3 2016 excluding Harald profit

PATRIZIA | © 2020

35

Financials 9M 2020

Guidance for FY 2020

Guidance for FY 2020 specified on the basis of increased visibility for Q4 2020

Assumptions for FY 2020

Specified operating income guidance for FY 2020e of

EUR 110.0 to 130.0m reflects the already reached lower

end of former guidance range of EUR 100.0 - 140.0m as

per 9M 2020 and visibility for Q4 2020

Total service fee income: EUR 308.0 - 335.0m

(from EUR 300.0 - 350.0m)

Management fees: EUR 192.0 - 198.0m

(from EUR 190.0 - 200.0m)

Transactions fees: EUR 36.0 - 47.0m

(from EUR 30.0 - 40.0m)

Performance fees: EUR 80.0 - 90.0m

(from EUR 80.0 - 110.0m)

Net sales revenues and co-investment income:

EUR 20.0m (unchanged)

Net operating expenses1: EUR 208.0 - 215.0m

Income composition FY 2020e | EUR m

72% 73%

87%

90.0 20.0

70%

-

74%

80.0

-215.0

47.0

87%

198.0

-

83%

-

-

-208.0

36.0

192.0

134.5

-10.0

130.0

-

110.0

(from EUR 210.0 - 220.0m)

Transaction volume: EUR 4.0 - 5.0bn

(from EUR 3.5 - 5.5bn)

Assets under management: EUR 46.5 - 48.0bn

(unchanged)

¹ Excluding EUR 11.6m investments in the future

PATRIZIA | © 2020

FY 2019

Operating

Manage-

Trans-

Perfor-

income

ment

action

mance

fees

fees

fees

Total service fee income

308.0 - 335.0

FY 2020e

Net sales

Net

D&A,

Operating

revenues

operating

financial

income

and co-

expenses1

result and

investment

other items

income

% figure shows

9M 2020 vs 2020e at mid-point

36

Financials 9M 2020

Solid financial position

Rock-solid balance sheet and strong cash position make PATRIZIA well prepared for the crisis

  • Strong balance sheet ratios and capital structure to facilitate further profitable growth

Strong balance sheet

EUR m

30.09.2020

Total assets

1,913.7

Equity (excl. non-controlling

1,218.3

interests)

Equity ratio

63.7%

Cash and cash equivalents

437.5

+ Deposits and securities

+220.8

- Bank loans (for temporarily

-46.9

warehoused assets)

- Bonded loans

-300.0

= Net cash

311.4

Net equity ratio1

77.8%

Significant liquidity

EUR m

30.09.2020

Bank balances, cash,

658.3

deposits and securities

- Regulatory reserve for asset

-31.1

management companies

- Transaction related liabilities

-0.0

and blocked cash

- Liquidity in closed-end funds

-0.0

business property companies

= Available liquidity2

627.2

¹ Net equity ratio: Equity (excl. non-controlling interests) divided by total net assets (total assets less liabilities covered by cash in hand)

2 In addition 2,668,545 PATRIZIA treasury shares (worth EUR 55.1m as at 04.11.2020) which could be used as M&A currency (among other things)

PATRIZIA | © 2020

37

Agenda

  • Equity Story
  • Financials H1 2020
  • Appendix

PATRIZIA | © 2020

38

Appendix

Our competitive edge

Excellent market access and local knowledge are key to our strong investment performance for clients

Transactions

Fundraising

Financing

Investment

Track Record

Product

Offering

Expertise

Data as at 3M 2020

PATRIZIA | © 2020

  • Transactions worth EUR ~42bn completed since 2013
  • Transaction market expected to remain active resulting in a estimated transaction volume of EUR 4.0 - 5.0bn for FY 2020
  • EUR ~16bn of equity raised since 2013
  • >400 institutional investors, largely invested in multiple products
  • Broad range of direct and indirect investment opportunities
  • EUR 15.3bn of credit volume under management as at 9M 2020
  • More than 100 financial institutions providing debt funding
  • 84% of loans with fixed interest rates, 16% with floating rates
  • Consistently producing positive and competitive returns for institutional, private and (semi-)professional investors
  • Superior returns for value-add and private equity investments
  • Multi-fundplatform offering clients geographical, asset and risk diversification across investment products
  • Investments through regulated funds, separate accounts and co-investment vehicles
  • Integrated pan-European asset management team with more than 150 professionals in more than 15 European countries
  • 36 years of experience in the real estate market
  • Top provider of German Spezialfonds (BVI 2018)

'Turn to' real estate investment manager

Direct access to institutional investors worldwide

Best-in-class financing capabilities

Strong investment track record

Attractive product offering across all asset and risk classes

European network with experienced local teams

39

Appendix

Global Perspective with Local Expertise & Presence

PATRIZIA offers investment solutions with global reach & opportunity

24

PATRIZIA offices globally to service clients & manage real assets locally

40+

boutique operating partners worldwide managed by PATRIZIA Global Partners

Data as at 30 June 2020.

PATRIZIA | © 2020

PATRIZIA offices globally

Markets with PATRIZIA operations & clients

Operating partner offices

Markets with PATRIZIA Children Foundation projects

40

Appendix

Product overview

Direct & indirect investment opportunities allow our clients to achieve their individual portfolio objectives

Commingled Funds

Club Deals/JVs

Separate Accounts

Global Partner Products Management Mandates

  • Open-/closed-endedfunds
  • Specific themes
  • Institutional, private and (semi-)professional investors

Targeted business

Individual, nimble

Indirect real estate

strategy

strategies

investing across the

Small club of like-minded

Designed to achieve

globe

institutional partners

specific objectives of

Allows broad

institutional investors

diversification of clients'

real estate exposure

  • Advisory services
  • Asset, development management and/or platform for direct real estate investments or funds

PanEuropean

Gran Via 21

European Diversified 1

PMM Global IV

Madame Tussauds

Europe, commercial

Spain, retail & hotel

Europe, diversified

Global, diversified

London, leisure

PATRIZIA | © 2020

41

Appendix

PRODUCTS

PATRIZIA's closed-end funds with an anniversary and strong fund performance

Facts

Over time

Outlook

Q4

PATRIZIA | © 2020

  • The team PATRIZIA GrundInvest celebrates its
    5th anniversary.
  • The investment volume is over 1 billion Euro.1
  • More than 7,000 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 a new additional product-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

PATRIZIA | © 2020

43

Appendix

Capital allocation

Assets under

Invested capital

Invested capital

Participations

As at 30.09.2020

management

(fair value)

(at cost)

EUR m

EUR m

EUR m

in %

Third-party business

39,876.4

0.0

Co-Investments

6,315.8

496.5

91.4

Residential

5,435.6

479.8

77.3

Dawonia GmbH

4,828.0

158.91

51.7

5.1

Dawonia performance fee claims

295.31

0.0

0.1

WohnModul I SICAV-FIS

607.5

25.5

25.5

10.1

Other

0.11

0.1

0.0

Commercial Germany

878.0

14.3

11.3

Alliance

236.2

5.71

5.3

5.1

Seneca

159.1

3.41

1.8

5.1

PATRoffice

0.31

0.2

6.3

TRIUVA/IVG logistics

482.8

4.21

3.4

2.1

TRIUVA/IVG commercial

0.81

0.7

11.0

Commercial International

2.3

2.4

2.8

Citruz Holding LP (UK)

2.3

0.01

0.4

10.0

First Street Development LTD (UK)

2.4

2.4

10.0

Principal investments

23.4

23.4

Other balance sheet items

371.2

2

Tied-up investment capital

46,215.7

891.1

Available liquidity

627.2

Total investment capital

46,215.7

1,518.3

of which debt (bonded loans)

300.0

of which equity PATRIZIA (excl. non-controlling interests)

1,218.3

1 After deduction of deferred taxes from the valuation according to IFRS 9 | 2 Including goodwill and fund management contracts

PATRIZIA | © 2020

44

Appendix

Reconciliation of operating income

EUR k

9M 2020

9M 2019

Change

EBITDA

101,837

95,104

7.1%

Amortisation of other intangible assets¹, software and rights of use,

depreciation of property, plant and equipment as well as financial

investments

-29,157

-31,473

-7.4%

EBIT

72,680

63,631

14.2%

Finance income/expenses

-2,762

-2,965

-6.9%

Result from currency translation

-8,001

82

< - 1.000,0%

EBT

61,917

60,749

1.9%

Amortisation of fund management contracts and licenses as well as

financial investments

17,069

19,954

-14.5%

Realised changes in value of investment property (net)

0

3,960

-100.0%

Reorganisation result

0

9,354

-100.0%

Non-cash currency effects

6,389

-643

< - 1.000,0%

Operating income from participations (IFRS 9)

9,001

4,337

107.5%

Investments in the future

5,826

0

/

Operating income

100,202

97,709

2.6%

1 In particular fund management contracts transferred as part of the recent acquisitions

PATRIZIA | © 2020

45

Appendix

Consolidated income statement

EUR k

9M 2020

9M 2019

Change %

Revenues

223,157

242,920

-8%

Income from the sale of investment property

0

273

-100%

Changes in inventories

-650

-23,130

-97%

Other operating income

11,501

9,514

21%

Income from the deconsolidation of subsidiaries

116

585

-80%

Total operating performance

234,124

230,162

2%

Cost of materials

-4,117

-3,209

28%

Cost of purchased services

-12,479

-11,278

11%

Staff costs

-98,981

-92,677

7%

Other operating expenses

-51,206

-47,472

8%

Impairment losses for trade receivables and contract assets

57

-486

-112%

Income from participations

27,036

29,126

-7%

Earnings from companies accounted for using the equity method

9,149

292

> 1.000%

Cost from the deconsolidation of subsidiaries

-1,746

0

/

EBITDAR

101,837

104,458

-3%

Reorganisation expenses

0

-9,354

-100%

EBITDA

101,837

95,104

7%

Amortisation of other intangible assets, software and rights of use,

depreciation of property, plant and equipment as well as financial

investments

-29,157

-31,473

-7%

Earnings before interest and taxes (EBIT)

72,680

63,631

14%

Financial income

2,154

1,384

56%

Financial expenses

-4,916

-4,349

13%

Result from currency translation

-8,001

82

< - 1.000%

Earnings before taxes (EBT)

61,917

60,749

2%

Income taxes

-16,561

-14,760

12%

Net profit for the period

45,356

45,989

-1%

PATRIZIA | © 2020

46

Appendix

Consolidated balance sheet | Assets

EUR k

30.09.2020

31.12.2019

A. Non-current assets

Goodwill

211,323

210,292

Other intangible assets

115,671

131,895

Software

16,084

10,326

Rights of use

25,801

24,988

Investment property

1,835

1,835

Equipment

6,301

6,056

Associated companies accounted using the equity method

34,322

69,035

Participations

552,917

525,716

Non-current borrowings and other loans

35,048

28,276

Deferred taxes

20,606

17,305

Total non-current assets

1,019,908

1,025,724

B. Current Assets

Inventories

21,577

113,208

Securities

11

1,011

Current tax assets

16,310

17,318

Current receivables and other current assets

418,443

380,735

Cash and cash equivalents

437,497

449,084

Total current assets

893,838

961,356

Total assets

1,913,745

1,987,080

PATRIZIA | © 2020

47

Appendix

Consolidated balance sheet | Equity and liabilities

EUR k

30.09.2020

31.12.2019

A. Equity

Share capital

89,683

91,060

Capital reserves

128,652

155,222

Retained earnings

Legal reserves

505

505

Currency translation difference

-10,099

-4,818

Remeasurements of defined benefit plans according to

IAS 19

-3,459

-3,459

Revaluation reserve according to IFRS 9

108,000

78,721

Consolidated unappropriated profit

905,047

889,160

Non-controlling interests

32,800

30,359

Total equity

1,251,128

1,236,750

B. Liabilities

NON-CURRENT LIABILITIES

Deferred tax liabilities

113,742

112,178

Retirement benefit obligations

27,020

27,564

Bonded loans

300,000

300,000

Non-current liabilities

20,581

25,094

Leasing liabilities

18,880

15,841

Total non-current liabilities

480,224

480,677

CURRENT LIABILITIES

Short-term bank loans

46,900

93,194

Other provisions

8,869

9,254

Current liabilities

95,062

101,186

Short-term leasing liabilities

7,179

9,328

Tax liabilities

24,383

56,692

Total current liabilities

182,393

269,653

Total equity and liabilities

1,913,745

1,987,080

PATRIZIA | © 2020

48

Appendix

Financial calendar

2021

February

25

Preliminary results 2020

March

18

Annual Report 2020

May

12

Quarterly Statement for the first quarter of 2021

June

23

Annual General Meeting, virtual

August

5

Interim Report for the first half of 2021

November

11

Quarterly Statement for the first nine months of 2021

Invitations and dial-in numbers are provided in advance.

For further information, please visit: www.patrizia.ag.

PATRIZIA | © 2020

49

Appendix

Contact

KARIM BOHN

MARTIN PRAUM

Member of the

Senior Managing Director

Management Board | CFO

Head of Investor Relations

PATRIZIA AG

T

+49 821 50910-402

Fuggerstrasse 26

F

+49 821 50910-399

86150 Augsburg

M

+49 151 19685445

Germany

investor.relations@patrizia.ag

MAXIMILIAN GERBER

VERENA SCHOPP DE ALVARENGA

Associate | Investor Relations

Senior Associate | Investor Relations

T

+49 821 50910-351

T

+49 821 50910-403

F

+49 821 50910-399

F

+49 821 50910-399

M

+49 151 24506188

M

+49 151 58339292

investor.relations@patrizia.ag

investor.relations@patrizia.ag

Disclaimer

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.

11 November 2020, PATRIZIA AG

PATRIZIA | © 2020

50

Disclaimer

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


© Publicnow 2020
All news about PATRIZIA AG
01/11PATRIZIA : acquires new 4,400 sq m office building in central Berlin
PU
01/07PATRIZIA : buys prime logistics asset in Netherlands for EUR 73 million
PU
01/06PATRIZIA : Warburg Research gives a Buy rating
MD
2020PATRIZIA : acquires central Berlin office
PU
2020PATRIZIA : Berenberg gives a Buy rating
MD
2020PATRIZIA : raises EUR 220 million of new equity for award-winning...
PU
2020DGAP-PVR : PATRIZIA AG: Release according to Article 40, Section 1 of the WpHG [..
DJ
2020PATRIZIA : NorldLB gives a Neutral rating
MD
2020PATRIZIA : sells newly developed logistics park in Berlin
PU
2020PATRIZIA : Buy rating from Warburg Research
MD
More news
Financials
Sales 2020 335 M 406 M 406 M
Net income 2020 63,6 M 76,9 M 76,9 M
Net cash 2020 286 M 346 M 346 M
P/E ratio 2020 36,3x
Yield 2020 1,21%
Capitalization 2 282 M 2 767 M 2 761 M
EV / Sales 2020 5,95x
EV / Sales 2021 5,30x
Nbr of Employees 871
Free-Float 45,3%
Chart PATRIZIA AG
Duration : Period :
Patrizia AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends PATRIZIA AG
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 8
Average target price 26,86 €
Last Close Price 25,45 €
Spread / Highest target 21,8%
Spread / Average Target 5,53%
Spread / Lowest Target -5,70%
EPS Revisions
Managers and Directors
NameTitle
Wolfgang Egger Co-Chief Executive Officer
Thomas Wels Co-Chief Executive Officer
Theodor Seitz Chairman-Supervisory Board
Karim Bohn Chief Financial Officer
Manuel Käsbauer Chief Technology & Innovation Officer