Despite the coronavirus crisis, German property firm Patrizia posted a 3% increase in operating income to €24.7 mln in the first quarter of 2020.
Assets under management rose to €45.3 bn compared to €44.5 bn at year-end 2019. AUM is expected to reach between €46.5 bn and €48 bn before the end of the year, the Ausburg-based firm said.
To reflect the Covid-19 uncertainties, Patrizia has decided to broaden its guidance range for full-year 2020, with operating income now expected to come in at between €100 mln and €140 mln for the year.
‘Based on the successful execution of a number of transactions for its global clients in 2020, the company already has sufficient visibility in the operating income development in H1 2020 and is confident to deliver on the broadened guidance range despite the remaining macro-economic uncertainties,’ the firm said.
Patrizia has also confirmed its proposed shareholder dividend payment of €0.29 per share for FY 2019, an increase of 7.4% compared to last year’s level.
The firm raised equity of €400 mln from clients in the first quarter of the year, up 33% year-on-year. It also closed €2 bn of deals in the same period.
‘We had a solid start into FY 2020 and we strongly believe Patrizia will successfully weather the Covid-19 crisis with our resilient business model, rock-solid balance sheet and strong cash position. Covid-19 has significantly slowed down activity in the real estate investment market but we expect a material recovery of the real estate transaction activity by the end of 9M 2020 at the earliest,’ said CFO Karim Bohn.