In its preliminary results, Patrizia said it generated an operating income of €82 mln in 2017, a 14% increase on the adjusted 2016 level of €72 mln.

Following a successful fourth quarter in 2017, earnings also comfortably exceeded the recently increased full year guidance of ‘slightly more than’ €75 mln. This was driven by higher than budgeted performance fees from the management of real estate investments for the group’s international institutional and private investors.

Organic growth in assets under management (AUM) also exceeded expectations with €2.2 bn or 12% in 2017. Including Patrizia Multi Managers – formerly Sparinvest Property Investors – AUM stood at €21.9 bn at the end of 2017. Including the acquisitions of Triuva and Rockspring Property Investment Managers, Patrizia's pro-forma AUM will more than double compared to the end of 2016 to €38 bn.

Karim Bohn, Patrizia's chief financial officer, said: 'With this strong set of results we more than delivered on what we promised organically while successfully executing on our external growth strategy. Both the operating progress and recent acquisitions substantially increase the level of recurring earnings and bring Patrizia to a new level of sustainable profitability. At the same time we maintain a very conservative balance sheet structure and strong cash position.'

M&A
Based on the expected continued organic growth and including the earnings contribution from the recent acquisitions (Patrizia Multi Managers, Triuva and Rockspring Property Investment Managers; Rockspring acquisition pending closing - assumed to contribute nine months 2018 earnings, Patrizia expects to generate a 2018 operating income in the range of €85 mln to €100 mln, equivalent to a growth rate of up to 22%.

Transactions
Patrizia last year executed transactions in residential and commercial real estate totalling €6 bn, an increase of approximately 17% on 2016 (€5.1 bn). The increased transaction volume confirms Patrizia’s strong deal sourcing capabilities from which its global client base benefits.

Patrizia secured €3.5 bn of acquisitions in 2017, an increase of 9% on the prior year (2016: €3.2 bn) and €2.5 bn of sales, up 32% (2016: €1.9 bn). During the period, Patrizia raised around €2 bn of funds from institutional and private investors which have been deployed into investment opportunities in strong, established markets across Europe. International capital accounted for approximately 40% of all raised institutional capital during 2017, up from 18% in 2016, as international institutional organisations mandate Patrizia to invest on their behalf across Europe.

Wolfgang Egger, CEO of Patrizia Immobilien, said: 'Our results in 2017 underline the strong performance of our local and pan-European experts to identify and execute attractive investments across all asset sectors and risk classes, as well as realising outperformance for our institutional and private investors. In particular our clients will benefit from the recently announced acquisitions as the combined organisation, with its strengthened European network, broader product spectrum and stronger access to the pan-European investment markets, offers more opportunities to institutional and private investors.'

Pictured: Karim Bohn, CFO of Patrizia Immobilien

Top Investors
Patrizia featured in 3rd position in PropertyEU's last Top Investors Deal and Dealmakers ranking, which was published in March 2017. The next ranking - based on European real estate transactions volume for 2017 - is published in May 2018.

For more information, email surveys@propertyeu.info