PATRIZIA Reports Strong 9M 2025 Results and Raises Full-Year Guidance

PATRIZIA published its financial results for the first nine months of 2025, showing significant improvement in key financial metrics and subsequently raising its full-year guidance. The company reported a substantial increase in EBITDA to €44.6 million, up from €6.7 million in the same period last year, representing an EBITDA margin of 22.1% compared to 3.5% in the previous year. This improvement was primarily driven by strong cost discipline and an improved co-investment result, with management fees of €174.0 million exceeding operating expenses of €166.0 million.

The company's assets under management showed positive momentum, reaching €56.3 billion as of September 30, 2025, representing slight quarter-on-quarter growth from €55.9 billion at the end of June. This growth was supported by organic net AUM growth and valuations of real assets turning slightly positive again in the third quarter. Investment activities demonstrated significant improvement, with closed acquisitions surging by 41.0% to €1.8 billion, indicating that investors are returning to real assets. Total closed transactions grew by 7.7% year-over-year, while closed disposals decreased to €0.5 billion from €0.9 billion in the previous year.

Asoka Wöhrmann, CEO of PATRIZIA SE, commented on the company's strategic positioning, stating that the integration of real estate and infrastructure investment platforms has created a smart real assets platform enabling growth in the new cycle. He emphasized the company's focus on infrastructure as a long-term investment opportunity for modernizing Europe's aging infrastructure and highlighted modern Living as a key future growth area. The company's 40-plus year track record positions it to offer attractive investment opportunities for clients in the evolving market environment.

Financial performance improvements were largely attributed to strict cost management measures. Operating expenses were reduced by 17.1% to €166.0 million, driven by a 14.9% decrease in staff costs to €111.4 million and a 25.2% reduction in other operating expenses to €41.8 million. Recurring management fees returned to growth, accounting for 90.8% of total service fee income, which amounted to €191.7 million. Net sales revenues and co-investment income improved significantly to €10.6 million from negative €4.9 million in the previous year, while net profit for the period turned positive at €6.9 million, a substantial improvement of €36.1 million.

The improved earnings development and optimized working capital management led to substantial growth in operating cash flow, which leaped to €40.2 million from €2.3 million in the previous year. This strong cash generation enabled the company to cover dividend payments for fiscal year 2024 of €30.3 million while maintaining financial flexibility and investing additional capital in strategic co-investments. For more detailed information about the company's performance and strategic direction, visit https://www.patrizia.ag.

Based on the strong performance in the first nine months, PATRIZIA raised its full-year guidance for 2025. EBITDA is now expected in the range of €50.0-65.0 million, up from the previous guidance of €40.0-60.0 million, with the EBITDA margin guidance increased to 19.0-24.0% from 15.2-20.8%. The AUM guidance was specified to a range of €56.0-60.0 billion, adjusted from the previous range of €58.0-62.0 billion due to lower than anticipated equity raised, investment activities, and currency effects. Martin Praum, CFO of PATRIZIA SE, emphasized that the successful EBITDA development was primarily driven by continued efficiency measures, allowing the company to decouple Group profitability from market-driven investment timing and performance fees.