Interim / Quarterly Report • Aug 8, 2016
Interim / Quarterly Report
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REPORT FOR THE FIRST HALF JANUARY TO JUNE 2016
| in EUR '000 | 1st half of 2016 | 1st half of 2015 | |
|---|---|---|---|
| 01.01. – 30.06.2016 | 01.01. – 30.06.2015 | ||
| Revenues | 579,235 | 102,807 | |
| Total operating performance | 396,328 | 95,913 | |
| EBITDA | 289,958 | 18,679 | |
| EBIT | 286,665 | 15,210 | |
| EBT | 277,397 | 11,648 | |
| Operating result1 | 231,774 | 15,740 | |
| Net profit for the period | 230,558 | 10,147 |
| in EUR '000 | 30.06.2016 | 31.12.2015 |
|---|---|---|
| Non-current assets | 254,779 | 255,243 |
| Current assets | 740,405 | 1,376,588 |
| Equity | 763,171 | 539,791 |
| Equity ratio (excl. minorities) | 72.9% | 32.0% |
| Non-current liabilities | 67,201 | 105,202 |
| Current liabilities | 164,812 | 986,838 |
| Total assets | 995,184 | 1,631,831 |
| ISIN | DE000PAT1AG3 |
|---|---|
| SIN (Security Identification Number) | PAT1AG |
| Code | P1Z |
| Share capital as of 30 June 2016 | EUR 76,323,533 |
| No. of shares in issue as of 30 June 2016 | 76,323,533 |
| Second quarter 2016/First half 2016 high2 | EUR 25.15/EUR 27.00 |
| Second quarter 2016/First half 2016 low2 | EUR 19.64/EUR 19.64 |
| Closing price as of 30 June 20162 | EUR 21.58 |
| Share price performance | –20% |
| Market capitalisation as of 30 June 2016 | EUR 1.6 billion |
| Average trading volume per day (first 6 months of 2016)3 | 125,300 shares |
| Indices | SDAX, GEX, DIMAX |
1 The operating income is calculated based on the EBT in accordance with IFRS, adjusted by non-cash effects from the valuation of investment properties and currency exposure, the amortisation of fund management contracts and reorganisation expenses. Realised valuation gains from the sale of real estate assets held as a financial investment as well as realised currency changes are included.
2 Closing price Xetra-trading
3 All German stock exchanges
FOR THE FIRST HALF OF 2016
PATRIZIA concluded the first half of 2016 with an operating income of EUR 231.8m and operating profit up 90.4% to EUR 23.8m (first half of 2015: EUR 12.5m), excluding income from the sale of the Harald Portfolio.
Assets under Management (AuM) increased to EUR 17.2bn, a rise of EUR 0.6bn or 3.6% from EUR 16.6bn at the year end 2015. The Harald Portfolio disposal (EUR 1.0bn) as well as other sales of EUR 0.3bn was more than offset by EUR 1.5bn of acquisitions. A robust pipeline of acquisitions is expected to close by the year end 2016 totalling approximately EUR 900m.
As a result of the first half performance and planned activity in the second half, PATRIZIA confirms its full year guidance for an operating income of at least EUR 250m as well as an AuM growth by around EUR 2.0bn to EUR 18.6bn.
The sale of the Harald Portfolio is near completion. It has an operating income of EUR 208.0m after transaction-related taxes of EUR 44.7m and minority shares of EUR 19.3m. This amount reflects the portfolio's contribution to the operating income in the first half of 2016 and PATRIZIA's guidance for the year 2016 of at least EUR 250m.
| in EUR '000 | 01.01. – 30.06.2016 |
|---|---|
| Operating income | 272,020 |
| Transaction-related taxes | –44,729 |
| Minority shares | –19,285 |
| SHARE IN PATRIZIA'S OPERATING INCOME GUIDANCE | 208,006 |
The sale of the Harald Portfolio was partly executed as an asset deal and partly as a share deal. The asset deals are shown as revenue and as changes in inventories in the income statement. The share deals are recognised as income from the deconsolidation of subsidiaries.
PATRIZIA has made a strategic decision to focus on its core investment management activities and services which create a higher value for PATRIZIA's clients and their investments. Therefore, PATRIZIA plans to work with an external service provider for its property management service, and subsequently dispose of its existing division to a strategic buyer. The disposal process is now underway with completion expected before the end of 2016. Alongside this new approach PATRIZIA intents to continue to build on its growth in Europe by expanding its local presence to more countries and further optimise its German operations. As part of the stronger focus on investment management, PATRIZIA will concentrate on areas of the business where it can drive value and grow income, such as asset management and portfolio management, acquisitions and realisations. The overall range of services offered by PATRIZIA will be reduced in order to streamline activity and focus on the international expansion. This reorganisation activity has incurred one-off expenses of EUR 11.3m which PATRIZIA expects to be recouped through saving within the next two to three financial years.
On 23 June 2016, the United Kingdom voted in a non-binding referendum to exit the European Union. At this stage, the impact for PATRIZIA's business in the UK and in Europe remains unclear. The economic implications for the UK and Europe and respective property markets will depend largely on the negotiation of the exit process. However, the UK is among the largest and most liquid property markets in Europe and PATRIZIA remains committed to the country where it believes there are still strong investment opportunities for clients.
Following the EU referendum, the foreign exchange markets experienced some short term volatility, and the depreciation of GBP had an impact on PATRIZIA's AuM, balance sheet and income statement during the reporting period.
PATRIZIA's operating income has been adjusted by unrealised currency valuation changes as it represents a key performance indicator for the operational performance of the company. The currency result is reconciled in the description of the economic position under item 1.2.
Based on the good earnings momentum, PATRIZIA confirms its full year guidance for an operating income of at least EUR 250m, as well as growth in AuM by around EUR 2.0bn to EUR 18.6bn. The operating income will be at least EUR 250m, excluding transaction-related taxes and shares of minorities for the sale of the Harald Portfolio which have already been deducted. In accordance with this definition, EUR 208.0m has been generated from the sale of the Harald Portfolio, which, combined with EUR 23.8m from the operating business, means a total operating income of EUR 231.8m was achieved in the first half of 2016.
DEVELOPMENT OF KEY PERFORMANCE INDICATORS IN THE FIRST HALF OF 2016
As of 30 June 2016, PATRIZIA had real estate AuM of EUR 17.2bn, a total increase of EUR 0.6bn or 3.6% from EUR 16.6bn at the end of 2015. EUR 11.4bn of this was attributable to Germany and EUR 5.8bn more widely in Europe. The sale of the Harald Portfolio was offset by new third party business.
Looking ahead to the remainder of the fiscal year 2016, PATRIZIA confirms its full year guidance for an operating income of at least EUR 250m as well as growth in AuM by around EUR 2.0bn to EUR 18.6bn.
Principal Investments Co-Investments Third Party Business
In the first half of 2016 operating income increased to EUR 231.8m (first half of 2015: EUR 15.8m). Disregarding the contribution from the disposal of the Harald Portfolio, the operating income increased by 90.4%, from EUR 12.5m in the first half of 2015 to EUR 23.8m.
Operating income before tax is a key performance indicator for PATRIZIA. It is calculated based on EBT in accordance with IFRS, adjusted by non-cash effects from the valuation of investment properties and currency exposure, the amortisation of fund management contracts and reorganisation expenses. It includes realised valuation gains from the sale of real estate assets held as a financial investment as well as realised currency changes are
Operating income without Harald Operating Income
Development of supplemental performance parameters:
In the first half of 2016 income from management services increased by 23.7% to EUR 77.8m, from EUR 62.9m in the first half of 2015.
PATRIZIA charges recurring fees for the management of its real estate assets. The base fee relates to the property, asset, fund and portfolio management. Moreover, PATRIZIA generates transaction fees for acquisitions and sales and a further performance-based fee for when defined target returns are exceeded.
Base Fee Transaction Fee Performance-related Revenues
In the first half of 2016 investment income was EUR 218.7m, including EUR 208.0m from the sale of the Harald Portfolio. Excluding the proceeds from the Harald Portfolio, the underlying investment income increased by 7.0% to EUR 10.7m from EUR 10.0m in the first half of 2015.
The segment investments comprises principal investments – investments on PATRIZIA's own account – and co-investments. Income from principle investments include sales proceeds as well as rental income from these investments. Income from co-investments is treated as income from participations.
Investment Income without Harald Investment Income
In the first half of 2016 acquisitions of EUR 1.5bn and sales of EUR 1.3bn were completed. The disposals include the sale of the Harald Portfolio of EUR 1.0bn. Principal investments incur no transaction fees and the proceeds are fully included in the investment income. Compared with the same period in the previous year, the transaction volume rose from EUR 2.5bn to EUR 2.8bn.
In the period under review EUR 924.3m of equity for investments was raised with institutional and retail clients compared to EUR 396.2m in the same period of the previous year.
PARTIZIA's core business is acquiring and managing real estate assets and portfolios for institutional and retail clients throughout Europe. PATRIZIA generates management fees for its services and investment income from co-investments and principal investments, which can be split into three categories:
With third party business, special funds are placed and managed for retail and institutional clients through the Group's three investment management arms. PATRIZIA generates stable and recurring income through the management of its assets. There is no equity investment by PATRIZIA in the third party business. In total, the third party business accounts for EUR 10.1bn AuM as of 30 June 2016.
In the first half of 2016, PARTIZIA's retail funds division, PATRIZIA GrundInvest Kapitalverwaltungsgesellschaft mbH, had fully placed its first fund to retail clients after only four months with a value of EUR 45.6m. Following on this, a second retail fund was launched, which is investing in a modern mixed use urban quarter in the city centre of Stuttgart. The pipeline for the second half of 2016 comprises two further funds with assets located in Copenhagen and The Hague.
PATRIZIA additionally manages separate account mandates with AuM totalling EUR 866m. Having acquired the building of the London Madame Tussauds Waxwork museum on behalf of a Taiwanese investor in 2015, the Astro-Tower in Brussels was acquired for a consortium of Korean investors in the period under review. In both cases, PATRIZIA is acting as asset and investment manager.
| in EUR million | Assets under Management |
Equity commit ments |
of which already inves ted equity |
of which outstanding |
Number of vehicles |
|---|---|---|---|---|---|
| PATRIZIA WohnInvest KVG mbH | 1,482 | 1,588 | 993 | 5961 | 9 |
| Pool funds | 963 | 1,019 | 638 | 3811 | 5 |
| Individual funds | 519 | 569 | 355 | 2151 | 4 |
| PATRIZIA GewerbeInvest KVG mbH | 7,473 | 5,466 | 4,537 | 931 | 23 |
| Pool funds | 4,132 | 2,931 | 2,366 | 566 | 11 |
| Individual funds | 1,188 | 1,267 | 924 | 344 | 10 |
| Label funds | 2,153 | 1,268 | 1,247 | 21 | 2 |
| PATRIZIA Real Estate Investment Management S.á r.l. (REIM)2 |
171 | 85 | 85 | 0 | 1 |
| Seperate accounts | 866 | 573 | 573 | 0 | 8 |
| PATRIZIA GrundInvest KVG mbH | 148 | 0 | 67 | 0 | 3 |
| THIRD PARTY BUSINESS | 10,140 | 7,712 | 6,255 | 1,527 | 44 |
1 Without project developments secured through purchase agreements
2 PATRIZIA Nordic Cities SCS SICAV-FIS
PATRIZIA participates in a number of co-investment mandates together with its clients, with up to a maximum of 10% in real estate investments. As well as this the commitment to the client and the transaction, PATRIZIA generates third party management fees and additional investment income, while PATRIZIA's shareholders benefit from investment in a pan-European, diversified and attractive real estate portfolio. As of 30 June 2016, co-investments contributed EUR 6.8bn to PATRIZIA's AuM. PATRIZIA has invested EUR 0.2bn of equity in co-investments.
No significant changes in PATRIZIA's co-investments occurred in the first half of 2016. Reference to these are made in PATRIZIA's annual report 2015, p. 60.
PATRIZIA acquires both portfolios and single assets opportunistically and on a very selective basis for its own account as principal investments. Whilst an asset is only acquired if it is in principle an attractive long-term investment, the clear objective is to create an attractive product and sell on the portfolio or property profitably or place it with existing clients. Principal investments as of 30 June 2016 amounted to EUR 0.3bn.
In the period under review there were changes in the following principle investments:
An undeveloped area known as Plot 5 was transferred to a joint venture with the Greater Manchester Pension Fund. PATRIZIA received EUR 11.2m as well as retained a minority stake in the joint venture, and will carry out any project management in the future with plans to develop an office complex.
Also in Manchester, PATRIZIA exchanged sale contracts with an institutional British investor at the beginning of June on No.1 First Street, on office building that constitutes the Company's largest single principal investment. Completion is expected by mid-October 2016, and the GBP-denominated sales proceeds are fully hedged into EUR. Hence, a currency loss due to the depreciation of the GBP is not expected.
In line with the disposal plan, the vast majority of the assets in the Harald Portfolio were sold and have been recognised in the income statement in the first half of 2016.
PATRIZIA completed the acquisition of Wildrosenweg in Munich, in the first quarter 2016, with the purchase price having already been paid at the end of 2015. The individual condo sale of the property has already commenced.
In mid-June 2016, PATRIZIA acquired a Build To Rent asset in the increasingly popular London district of Barking. A project development for around 200 residential apartments is planned.
For the income impact of the principal investments, please refer to the economic position under item 1.2.
For reasons of transparency and clarity the earnings performance of PATRIZIA is shown with and without the effect off the sale of the Harald Portfolio and compared to the same period in the previous year. The development of the Group's earnings performance is described without considering the effects from the Harald Portfolio.
Operating income is the Group's key performance indicator as it includes the total of all operative items of the income statement, adjusted by the below-mentioned cash and non-cash items. In the first half of 2016, operating income increased to EUR 231.8m. Without the contribution from the sale of the Harald Portfolio, the operating income increased by 90.4% to EUR 23.8m, after EUR 12.5m in the first half of 2015. The change in operating income compared with the prior year period is shown in the following table:
| 1st half 2016 without |
1st half 2015 without |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
||
|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change |
| 16,720 | 9,931 | 68.4% | 289,958 | 18,679 | – |
| –5.1% | |||||
| – | |||||
| 41.5% | |||||
| –4,295 | 1,316 | – | –4,238 | -7 | – |
| 5,852 | 5,382 | 8.7% | 277,397 | 11,648 | – |
| 0 | 0 | – | 0 | -786 | – |
| 984 | 984 | – | 984 | 984 | – |
| 0 | 0 | – | -64,014 | -2,661 | – |
| 1,183 | 4,966 | –76.2% | 1,183 | 4,966 | –76.2% |
| 11,313 | 0 | – | 11,313 | 0 | – |
| 209.1% | |||||
| 23,768 | 12,482 | 90.4% | 231,774 | 15,740 | – |
| Harald –3,293 13,427 –3,280 4,436 |
Harald –3,469 6,462 –2,396 1,150 |
–5.1% 107.8% 36.9% 285.7% |
–3,293 286,665 –5,030 4,911 |
–3,469 15,210 –3,555 1,589 |
1 Fund management contracts that have been transferred in the course of the acquisition of PATRIZIA GewerbeInvest KVG mbH.
The items leading to the operating income are shown below in accordance with their position in the consolidated income statement.
In the first half of 2016 consolidated revenues without the sale of the Harald Portfolio increased to EUR 110.7m, up 14.7% from EUR 96.6m in the previous year. Almost all items of the consolidated revenues contributed to the positive development and are explained below.
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Sales proceeds of principal investments |
25,712 | 36,430 | –29.4% | 487,634 | 36,430 | – |
| Rental revenues | 6,932 | 3,851 | 80.0% | 13,274 | 10,105 | 31.4% |
| Revenues from management services |
73,138 | 54,505 | 34.2% | 73,138 | 54,505 | 34.2% |
| Revenues from ancillary costs | 2,534 | 1,186 | 113.7% | 2,792 | 1,053 | 165.1% |
| Miscellaneous | 2,396 | 580 | 313.1% | 2,397 | 714 | 235.7% |
| CONSOLIDATED REVENUES | 110,712 | 96,552 | 14.7% | 579,235 | 102,807 | 463.4% |
PATRIZIA's revenues only partly reflect the Group's total operating performance and are therefore only of limited expression. For a more comprehensive view on the overall performance the items below the revenue line have to be considered as well.
Sales proceeds from principal investments, excluding the sale of the Harald Portfolio decreased in the first half of 2016 by 29.4% to EUR 25.7m from EUR 36.4m in the prior year period due to the lower own stock. Sales proceeds from the disposal of an undeveloped area known as Plot 5 for EUR 11.2m in Manchester are included in the first half of 2016. The proceeds from the agreed disposal of an office building (No.1 First Street) will become effective upon closing later this year.
Rental revenues have increased by 80.0% from EUR 3.9m in the prior year to EUR 6.9m in the first half of 2016. Principal investments acquired during 2015 and the first half of 2016 have offset the decrease in rents caused by sales.
The expansion of the service business continues and is reflected in an increase of revenues by 34.2% to EUR 73.1m in the first half of 2016 from EUR 54.5m in the first half of 2015. This includes EUR 42.3m (first half of 2015: EUR 32.4m; +30.6%) attributable to management services and EUR 30.8m (first half of 2015: EUR 22.1m; +39.4%) of transaction and performance-based fees. The increase follows the growth of the AuM as well as the increased transaction volume.
Revenues from ancillary costs of EUR 2.5m (first half of 2015: EUR 1.2m; +113.7%) include revenues from the allocation of recoverable ancillary rental costs increased in line with rental growth. Miscellaneous items include transaction expenses which are charged to the corresponding investment vehicles. Due to the increase of the transaction volume the sum in the first half of 2016 increased fourfold to EUR 2.4m from EUR 0.6m year-on-year.
Total operating performance reflects PATRIZIA's performance more comprehensively than revenues. As a result of the significant increase in revenues, total operating performance in the first half year of 2016 has also increased significantly from EUR 84.0m by 17.5% yearon-year to EUR 98.7m.
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Revenues | 110,712 | 96,552 | 14.7% | 579,235 | 102,807 | 463.4% |
| Income from the sale of investment property |
901 | 2,969 | –69.7% | 901 | 2,969 | –69.7% |
| Changes in inventories | –19,606 | –22,219 | –11.8% | –387,117 | –22,219 | – |
| Other operating income | 3,027 | 6,711 | –54.9% | 6,379 | 7,079 | –9.9% |
| Income from the deconsolidation of subsidiaries |
3,691 | 0 | – | 196,930 | 5,277 | – |
| TOTAL OPERATING PERFORMANCE |
98,725 | 84,013 | 17.5% | 396,328 | 95,913 | 313.2% |
The sales proceeds of properties held long-term are shown as income from the sale of investment property. The sales proceeds after the deduction of the corresponding book values contributed a net result of EUR 0.9m in the first half of 2016 compared to EUR 3.0m in the first half of 2015. This decrease results from a lower number of units sold, as much of the stock has been sold. Nonetheless, positive value changes of EUR 1.2m could be realised with the sale of the assets in the first half of 2016.
In the first half of 2016, changes in inventories of EUR –19.6m (first half of 2015: EUR –22.2m; –11.8%) were recognised. Book value disposals of the assets sold from inventories reduced the existing stock by EUR 21.4m (first half of 2015: EUR –33.3m). The most significant change is the disposal of the principal investment Plot 5 in Manchester for EUR 7.1m. Capitalisations of EUR 1.8m (first half of 2015: EUR 11.0m) increased the existing stock, and are mainly attributable to maintenance measures.
Other operating income decreased by 54.9% to EUR 3.0m (first half of 2015: EUR 6.7m). Significant items are income from expired obligations (EUR 1.9m) and income from payments in kind (EUR 0.5m).
The majority of the income from the deconsolidation of subsidiaries is attributable to the disposal of the Harald Portfolio through share deals. For further details refer to item 3 in the Notes.
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Total operating performance | 98,725 | 84,013 | 17.5% | 396,328 | 95,913 | 313.2% |
| Cost of materials | –6,741 | –15,882 | –57.6% | –10,828 | –18,467 | –41.4% |
| Costs for purchased services | –10,353 | –7,145 | 44.9% | –10,353 | –7,145 | 44.9% |
| Staff costs | –42,622 | –43,480 | –2.0% | –56,249 | –43,480 | 29.4% |
| Change in value of investment property |
0 | 0 | – | 0 | 0 | – |
| Other operating expenses | –20,650 | –20,556 | 0.5% | –27,719 | –21,123 | 31.2% |
| Income from participations | 6,421 | 9,963 | –35.6% | 6,839 | 9,963 | –31.4% |
| Earnings from companies accounted for using the equity method |
3,253 | 3,018 | 7.8% | 3,253 | 3,018 | 7.8% |
| EBITDAR | 28,033 | 9,931 | 182.3% | 301,271 | 18,679 | – |
| Reorganisation expenses | –11,313 | 0 | – | –11,313 | 0 | – |
| EBITDA | 16,720 | 9,931 | 68.4% | 289,958 | 18,679 | – |
Cost of materials includes construction and maintenance measures for own assets, which are usually capitalised. Year-on-year, the cost of materials reduced by 57.6% from EUR 15.9m to EUR 6.7m in the first half of 2016 in line with the significantly reduced own stock, it comprises the following items:
Costs for purchased services largely include expenditures for the white labelled funds of PATRIZIA GewerbeInvest, for which PATRIZIA acts as service provider only. Overall, the costs for purchased services increased by 44.9% from EUR 7.1m in the previous year to EUR 10.4m in the first half of 2016. Due to acquisitions made in previous periods, management income from white labelled funds increased and the revenues amounted to EUR 8.6m (first half of 2015: EUR 7.8m; +11.1%), while the respective costs increased to EUR 8.0m (first half of 2015: EUR 6.6m; +19.8%).
As of 30 June 2016 PATRIZIA employed 815 permanent employees (30 June 2015: 800 employees). Staff costs are as following:
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Fixed salaries | 25,562 | 23,704 | 7.8% | 25,567 | 23,704 | 7.9% |
| Variable salaries | 9,811 | 6,692 | 46.6% | 23,432 | 6,692 | 250.1% |
| Sales commissions | 1,823 | 2,833 | –35.7% | 1,823 | 2,833 | –35.7% |
| Social security contributions | 5,245 | 4,743 | 10.6% | 5,246 | 4,743 | 10.6% |
| Effect of long-term variable compensation1 |
–977 | 4,518 | – | –977 | 4,518 | – |
| Miscellaneous | 1,158 | 990 | 17.0% | 1,158 | 990 | 17.0% |
| TOTAL | 42,622 | 43,480 | –2.0% | 56,249 | 43,480 | 29.4% |
1 Valuation changes of the long-term variable remuneration due to change in the share price.
Staff costs decreased slightly by 2.0% to EUR 42.6m (first half of 2015: EUR 43.5m). The fixed salaries increased due to customary salary adjustments and the increase of the number of employees over the past 12 month from EUR 23.7m by 7.8% to EUR 25.6m. In the context of European expansion, certain employees and executive staff were recruited with a higher variable salary portion. Variable salaries rose from EUR 6.7m in the previous year by 46.6% to EUR 9.8m in the first half of 2016. Sales and distribution commissions declined due to reduced volume of the condo privatisation by 35.7% from EUR 2.8m in the previous year to EUR 1.8m in the first half of 2016. Due to the weaker performance of the share price, the long-term variable compensation contributed a positive effect of EUR 1.0m, after costs of EUR 4.5m incurred last year. Any miscellaneous items mainly refer to payments in kind.
Other operating expenses remained almost flat at EUR 20.7m compared to EUR 20.6m in the prior year period. The specific composition is shown below:
| OTHER OPERATING EXPENSES – HALF YEAR |
|---|
| -------------------------------------- |
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Operating expenses | 7,412 | 6,994 | 6.0% | 8,354 | 6,524 | 28.1% |
| Administrative expenses | 5,837 | 4,944 | 18.1% | 6,101 | 5,062 | 20.5% |
| Selling expenses | 4,445 | 5,053 | –12.0% | 4,469 | 5,270 | –15.2% |
| Other expenses | 2,956 | 3,565 | –17.1% | 8,795 | 4,267 | 106.1% |
| TOTAL | 20,650 | 20,556 | 0.5% | 27,719 | 21,123 | 31.2% |
Operating expenses increased by 6.0% to EUR 7.4m in the first half of 2016, from EUR 7.0m in the previous year. Main items of the operating expenses are the rent for business premises and corresponding ancillary costs as well as IT and maintenance costs.
Administrative expenses increased by 18.1% to EUR 5.8m in the first half of 2016, compared to EUR 4.9m in the prior year. The increase is driven by the rise of the transaction-related costs for due diligence, legal and consultancy costs to EUR 1.8m (first half of 2015: EUR 1.4m) due to the stronger transaction volume. The costs for insurance and other contributions increased only marginally to EUR 0.5m (first half of 2015: EUR 0.4m). Transaction-based costs for due diligence as well as legal and consultancy costs are charged to the respective investment vehicles and shown as cost reimbursement under the revenue item.
Selling expenses decreased by 12.0% to EUR 4.4m in the first half of 2016, from EUR 5.1m in the prior period. These largely include the costs for PATRIZIA's sales activities and supporting marketing services, which were reduced in line with a reduced stock of properties to be sold.
Other expenses decreased in the first half of 2016 by 17.1% to EUR 3.0m, down from EUR 3.6m year-on-year. The largest expense included in this is consultancy services for transactions, which increased to EUR 2.0m from EUR 1.7m in the previous year.
The income from participations excluding the Harald Portfolio decreased to EUR 6.4m in the first half of 2016 after EUR 10.0m in the previous year. This reduction is mainly caused by the sale of SÜDEWO. In the first half of 2016, the co-investment GBW generated – like in the previous year – EUR 4.7m from services provided as shareholders' contribution and a return on capital employed of EUR 1.6m. The Seneca portfolio ("Other") contributed a return on capital employed of EUR 0.1m. The co-investment WohnModul I generated an income of EUR 3.3m after EUR 3.0m in the first half of 2015, which is recognised as the earnings from companies accounted for using the equity method.
| 1st half 2016 | 1st half 2015 | 1st half 2016 | 1st half 2015 | |||
|---|---|---|---|---|---|---|
| without | without | incl. Harald | incl. Harald | |||
| Harald | Harald | |||||
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| GBW | 6,343 | 6,318 | 0.4% | 6,761 | 6,318 | 7.0% |
| of which services provided as shareholders' |
||||||
| contribution | 4,732 | 4,707 | 0.5% | 4,732 | 4,707 | 0.5% |
| of which returns on | ||||||
| capital employed | 1,611 | 1,611 | – | 2,029 | 1,611 | 25.9% |
| SÜDEWO | 0 | 3,645 | – | 0 | 3,645 | – |
| Other | 78 | 0 | – | 78 | 0 | – |
| Income from participations | 6,421 | 9,963 | –35.6% | 6,839 | 9,963 | –31.4% |
| WohnModul I | 3,253 | 3,018 | 7.8% | 3,253 | 3,018 | 7.8% |
| Earnings from companies accounted for using the |
||||||
| equity method | 3,253 | 3,018 | 7.8% | 3,253 | 3,018 | 7.8% |
| TOTAL | 9,674 | 12,981 | –25.5% | 10,092 | 12,981 | –22.3% |
As a result of the reorganisation process as previously outlined, the number of employees in Germany is expected to be gradually reduced by the equivalent of 200 full time staff over the next 12–18 month. In the first half of 2016, reorganisation expenses of EUR 11.3m were incurred (first half of 2015: EUR 0m).
| in EUR '000 | 01.01. – 30.06.2016 |
|---|---|
| Expenses for advisors | 952 |
| Severance payments | 10,361 |
| TOTAL | 11,313 |
PATRIZIA's net profit for the period without taking into account the effect from the Harald Portfolio amounted to EUR 3.7m (first half of 2015: EUR 5.1m; –26.3%).
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| EBITDA | 16,720 | 9,931 | 68.4% | 289,958 | 18,679 | – |
| Amortisation of fund manage ment contracts, depreciation |
||||||
| of software and fixed assets | –3,293 | –3,469 | –5.1% | –3,293 | –3,469 | –5.1% |
| EBIT | 13,427 | 6,462 | 107.8% | 286,665 | 15,210 | – |
| Financial income | 796 | 480 | 65.8% | 1,155 | 1,630 | –29.1% |
| Financial expenses | –4,076 | –2,876 | 41.7% | –6,185 | –5,185 | 19.3% |
| Financial result | –3,280 | –2,396 | 36.9% | –5,030 | –3,555 | 41.5% |
| Gains/losses from currency translation |
–4,295 | 1,316 | – | –4,238 | –7 | – |
| EBT | 5,852 | 5,382 | 8.7% | 277,397 | 11,648 | – |
| Income taxes | –2,110 | –304 | 594.1% | –46,839 | –1,501 | – |
| NET PROFIT FOR THE PERIOD | 3,742 | 5,078 | –26.3% | 230,558 | 10,147 | – |
Amortisation of fund management contracts, depreciation of software and fixed assets are almost unchanged at EUR 3.3m (first half of 2015: EUR 3.5m; –5.1%). The largest single positions are the amortisation of fund management contracts of EUR 1.0m (unchanged year-on-year) and the depreciation of software of EUR 1.6m (first half of 2015: EUR 1.5m; +6.7%).
The negative financial result was impacted by a higher financing volume which resulted in a reduction by 36.9% to EUR –3.3m, compared with EUR –2.4m during the same period in the previous year. Financial income increased to EUR 0.8m after EUR 0.5m year-on-year. This includes interest income on delayed purchase price receipts as well as from shareholder loans to co-investments. Furthermore, financial expenses of EUR 4.1m (first half of 2015: EUR 2.9m; +41.7%) increased compared to the same period in the previous year through interest payments for loans for principal investments (i.e. Manchester) and the PATRIZIA GrundInvest KVG entities.
As of 30 June 2016 the currency result amounted to EUR –4.3m (first half of 2015: EUR 1.3m). This includes realised currency losses of EUR 0.7m, as well as EUR 3.6m non-realised and noncash effective temporary currency losses of equity invested or loans granted in GBP. The operating result has been adjusted for unrealised currency gains and losses.
| 30.06.2016 in EUR '000 |
31.12.2015 in EUR '000 |
Change | |
|---|---|---|---|
| Total Assets | 995,184 | 1,631,831 | –39.0% |
| Equity (excl. minorities) | 725,696 | 521,601 | 39.1% |
| Equity ratio | 72.9% | 32.0% | 40.9 PP |
| + Bank loans | 22,375 | 821,828 | –97.3% |
| + Bonded loans | 27,000 | 67,000 | –59.7% |
| – Cash and cash equivalents | 371,451 | 179,141 | 107.4% |
| = Net cash (–)/net debt (+) | –322,076 | 709,687 | – |
| Net equity ratio1 | 76.7% | 35.9% | 40.8 PP |
1 Shareholders equity (excl. minorities) divided by net assets (total assets less total debt covered by incremental cash) PP = percentage points
The Group's total assets in the period under review were reduced to EUR 1.0bn, after EUR 1.6bn at the end of 2015. The significant decrease is mainly due to the sale of the Harald Portfolio. For PATRIZIA GrundInvest KVG, one asset was deconsolidated in the second quarter of 2016, while another asset in The Hague was acquired and added to the balance sheet. This asset will be placed in a retail fund in the second half of 2016.
In the consolidated financial statement, PATRIZIA's real estate assets amount to EUR 289.0m (31 December 2015: EUR 1.1m; –73.2%):
| 30.06.2016 in EUR '000 |
31.12.2015 in EUR '000 |
Change | ||
|---|---|---|---|---|
| Investment property | 15,210 | 20,802 | –26.9% | |
| Inventories | 273,820 | 1,057,942 | –74.1% | |
| Principal Investments | 289,030 | 1,078,744 | –73.2% |
Of this, EUR 15.2m was attributable to investment property. EUR 273.8m are inventories, with EUR 19.4m being attributable to the remaining Harald Portfolio. All principal investments are intended to generate rental income prior to their eventual sale.
The capital allocation table provides an overview of all participations, assets under management as well as PATRIZIA's invested capital.
| Assets under Management in EUR million |
Investment capital in EUR million |
Investment in % |
|
|---|---|---|---|
| Third Party Business | 10,140 | – | – |
| Co-Investments | 6,787 | 172.1 | |
| Residential | 5,307 | 134.9 | |
| GBW GmbH | 3,562 | 53.8 | 5.1 |
| WohnModul I SICAV-FIS | 1,702 | 79.7 | 10.1 |
| Other | 43 | 1.4 | 10.0 |
| Commercial Germany | 446 | 17.7 | |
| PATRoffice | 207 | 5.7 | 6.3 |
| Seneca | 181 | 4.9 | 5.1 |
| sono west | 58 | 7.1 | 30.0 |
| Commercial International | 1,034 | 19.5 | |
| Aviemore Topco (UK) | 530 | 8.0 | 10.0 |
| Citruz Holdings LP (UK) | 109 | 2.8 | 10.0 |
| Plymouth Sound Holdings LP (UK) | 61 | 2.8 | 10.0 |
| Winnersh Holdings LP (UK) | 334 | 5.9 | 5.0 |
| Principal Investments | 270 | 280.8 | |
| Harald | 19 | 23.6 | 94.9 |
| Other | 251 | 257.2 | 100 |
| Operating companies | – | 28.6 | 100 |
| Investment capital employed | 17,197 | 481.5 | – |
| Available bank balances and cash | – | 271.2 | – |
| Total investment capital | 17,197 | 752.7 | – |
| Of which external capital (bonded loans) |
– | 27.0 | – |
| Of which PATRIZIA equity excl. minorities |
– | 725.7 | – |
In accordance with the decrease of the total assets, the liabilities were also significantly reduced at the reporting date.
One of the two bonded loans amounting to EUR 35.0m was repaid at maturity in June 2016.
The Group has short-term bank loans of EUR 22.4m outstanding as of 30 June 2016 (31 December 2015: EUR 821.8m). The loans are fully attributable to an entity of PATRIZIA GrundInvest KVG and bridge finance assets that are expected to be placed through retail funds within the next 12 to 18 month. The decrease in bank loans results from the almost complete disposal of the Harald Portfolio. Further to this, PATRIZIA used additional available cash to redeem loans.
The development of the financial liabilities is shown in the following table:
| 30.06.2016 in EUR '000 |
31.12.2015 in EUR '000 |
Change | |
|---|---|---|---|
| Long-term bonded loans | 27,000 | 32,000 | –15.6% |
| Short-term bonded loans | 0 | 35,000 | – |
| Short-term bank loans | 22,375 | 821,828 | –97.3% |
| Total financial liabilities | 49,375 | 888,828 | –94.4% |
For a detailed schedule of maturities please refer to item 12 of the Notes.
As of 30 June 2016, PATRIZIA holds a cash position of EUR 371.5m.
| in EUR '000 | 30.06.2016 |
|---|---|
| Bank balances and cash | 371,451 |
| – Transaction-based taxes Harald | –54,416 |
| – Shares of non-controlling shareholders | –36,666 |
| – Regulatory reserve KVG | –9,150 |
| = Available cash | 271,219 |
The cash position of the Group is not freely available in its entirety. Through the sale of the Harald Portfolio, transaction-based taxes of EUR 54.4m as well as payments to non-controlling shareholders of EUR 36.7m have to be paid, but were not due until the reporting date. In addition, a cash reserve of EUR 9.2m has to be permanently held and available for the regulated investment management companies (KVG's) due to regulatory requirements. Considering these positions, the available free cash balance amounts to EUR 271.2m.
PATRIZIA is exposed to both opportunities as well as risks in the course of its business activities. The Group has the necessary measures and processes in place to identify negative influences and risks in a timely manner in order to be able to respond accordingly. No significant new opportunities or risks have been identified by the Group since the annual statements for the 2015 financial year. The assessment of probabilities and potential extent of damage has also not led to any significant changes in the assessment of risks and opportunities.
The referendum of the United Kingdom to exit the European Union bears potential for future opportunities and risks, i.e. with respect to demand and supply of the property market or the currency translation. The management observes the development very carefully in order to be able to act accordingly. With regard to current principal- and co-investments, the assessment of risks remains unchanged.
The statements in the risk report of the 2015 Annual Report still apply. Please therefore refer to the risk report on pages 83 et seq. of the 2015 Annual Report of PATRIZIA Immobilien AG. No other risks are currently known to the Managing Board of PATRIZIA Immobilien AG.
Based on a strong and successful business development in the first half of 2016, the Board of Directors of PATRIZIA confirms the full year guidance for an operating income of at least EUR 250m, as well as growth in AuM by around EUR 2.0bn to EUR 18.6bn. It should be considered that in the forecasted operating income for the sale of the Harald Portfolio, transactionbased taxed and shares of minorities have already been deducted; for this purpose, please refer to item 1.1.
Augsburg, 9 August 2016
Wolfgang Egger Karim Bohn Klaus Schmitt CEO CFO COO
This report contains specific forward-looking statements that relate in particular to the business development of PATRIZIA and the general economic and regulatory environment and other factors to which PATRIZIA is exposed. 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.
| in EUR '000 | 30.06.2016 | 31.12.2015 |
|---|---|---|
| A. Non-current assets | ||
| Goodwill | 610 | 610 |
| Other intangible assets | 36,414 | 37,417 |
| Software | 7,823 | 9,225 |
| Investment property | 15,210 | 20,802 |
| Equipment | 5,095 | 5,015 |
| Participations in associated companies | 79,719 | 88,179 |
| Participations | 101,948 | 81,406 |
| Loans | 5,056 | 5,498 |
| Long-term tax assets | 78 | 78 |
| Deferred Taxes | 2,826 | 7,013 |
| Total non-current assets | 254,779 | 255,243 |
| B. Current assets | ||
| Inventories | 273,820 | 1,057,942 |
| Securities | 44 | 54 |
| Short-term tax assets | 11,046 | 8,280 |
| Current receivables and other current assets | 84,044 | 131,171 |
| Bank balances and cash | 371,451 | 179,141 |
| Total current assets | 740,405 | 1,376,588 |
| TOTAL ASSETS | 995,184 | 1,631,831 |
| in EUR '000 | 30.06.2016 31.12.2015 |
|
|---|---|---|
| A. Equity | ||
| Share capital | 76,324 | 76,324 |
| Capital reserve | 191,637 | 191,637 |
| Retained earnings | ||
| Legal reserves | 505 | 505 |
| Non-controlling shareholders | 37,475 | 18,190 |
| Currency translation difference | –8,047 | –869 |
| Consolidated unappropriated profit | 465,277 | 254,004 |
| Total equity | 763,171 | 539,791 |
| B. Liabilities | ||
| NON-CURRENT LIABILITIES | ||
| Deferred tax liabilities | 33,818 | 63,253 |
| Retirement benefit obligations | 687 | 687 |
| Bonded loan | 27,000 | 32,000 |
| Non-current liabilities | 5,696 | 9,262 |
| Total non-current liabilities | 67,201 | 105,202 |
| CURRENT LIABILITIES | ||
| Short-term bank loans | 22,375 | 821,828 |
| Bonded loan | 0 | 35,000 |
| Short-term financial derivatives | 0 | 3,677 |
| Other accruals | 16,305 | 6,740 |
| Current liabilities | 66,337 | 95,288 |
| Tax liabilities | 59,795 | 24,305 |
| Total current liabilities | 164,812 | 986,838 |
| TOTAL EQUITY AND LIABILITIES | 995,184 | 1,631,831 |
| in EUR '000 | 2nd quarter 2016 | 2nd quarter 2015 | 1st half 2016 | 1st half 2015 |
|---|---|---|---|---|
| 01.04. – 30.06.2016 |
01.04. – 30.06.2015 |
01.01. – 30.06.2016 |
01.01. – 30.06.2015 |
|
| Revenues | 90,897 | 55,525 | 579,235 | 102,807 |
| Income from the sale of investment property | 568 | 1,383 | 901 | 2,969 |
| Changes in inventories | –37,025 | –14,540 | –387,117 | –22,219 |
| Other operating income | 3,450 | 5,945 | 6,379 | 7,079 |
| Income from the deconsolidation of subsidiaries |
3,410 | 5,277 | 196,930 | 5,277 |
| Total operating performance | 61,300 | 53,590 | 396,328 | 95,913 |
| Cost of materials | –5,390 | –11,474 | –10,828 | –18,467 |
| Cost of purchased services | –6,974 | –2,295 | –10,353 | –7,145 |
| Staff costs | –21,886 | –21,952 | –56,249 | –43,480 |
| Other operating expenses | –12,085 | –11,762 | –27,719 | –21,123 |
| Income from participations | 3,667 | 4,972 | 6,839 | 9,963 |
| Earnings from companies accounted for using the equity method |
2,459 | 2,334 | 3,253 | 3,018 |
| EBITDAR | 21,091 | 13,413 | 301,271 | 18,679 |
| Reorganisation expenses | –11,313 | 0 | –11,313 | 0 |
| EBITDA | 9,778 | 13,413 | 289,958 | 18,679 |
| Amortisation of fund management contracts, depreciation of software and fixed assets |
–1,643 | –1,869 | –3,293 | –3,469 |
| Earnings before finance income and income taxes (EBIT) |
8,135 | 11,544 | 286,665 | 15,210 |
| Finance income | 395 | 1,355 | 1,155 | 1,630 |
| Finance costs | –1,634 | –3,703 | –6,185 | –5,185 |
| Losses from currency translation | –5,542 | –1,161 | –4,238 | –7 |
| Earnings before income taxes (EBT) | 1,354 | 8,035 | 277,397 | 11,648 |
| Income tax | –2,715 | –738 | –46,839 | –1,501 |
| Net profit for the period | –1,361 | 7,297 | 230,558 | 10,147 |
| Earnings per share (undiluted) in EUR | –0.02 | 0.10 | 2.77 | 0.11 |
| The net profit for the period is allocated to: | ||||
| Shareholders of the parent company | –1,860 | 5,833 | 211,273 | 8,683 |
| Non-controlling shareholders | 499 | 1,464 | 19,285 | 1,464 |
| –1,361 | 7,297 | 230,558 | 10,147 |
| in EUR '000 | 2nd quarter 2016 | 2nd quarter 2015 | 1st half 2016 | 1st half 2015 |
|---|---|---|---|---|
| 01.04. – 30.06.2016 |
01.04. – 30.06.2015 |
01.01. – 30.06.2016 |
01.01. – 30.06.2015 |
|
| Consolidated net profit | –1,361 | 7,297 | 230,558 | 10,147 |
| Items of other comprehensive income with reclassification to net profit/loss for the period |
||||
| Profit/loss from the translation of financial statements of international business units |
973 | 473 | –7,178 | 978 |
| Cash flow hedges | ||||
| Amounts recorded during the reporting period |
0 | 0 | 0 | 0 |
| Reclassification of amounts that were recorded |
0 | 0 | 0 | 0 |
| Total result for the reporting period | –388 | 7,770 | 223,380 | 11,125 |
| The total result is allocated to: | ||||
| Shareholders of the parent company | –887 | 6,306 | 204,095 | 9,661 |
| Non-controlling shareholders | 499 | 1,464 | 19,285 | 1,464 |
| –388 | 7,770 | 223,380 | 11,125 |
| in EUR '000 | 01.01. – 30.06.2016 |
01.01. – 30.06.2015 |
|---|---|---|
| Net profit for the period | 230,558 | 10,147 |
| Income taxes recognised through profit or loss | 46,839 | 1,501 |
| Financial expenses through profit or loss | 6,185 | 5,185 |
| Financial income through profit or loss | –1,155 | –1,630 |
| Amortisation of fund management contracts, software and equipment | 3,293 | 3,469 |
| Gain on the disposal of investment properties | –901 | –2,969 |
| Income from the deconsolidation of subsidiaries | –196,930 | –5,277 |
| Other non-cash items | 8,760 | –7,395 |
| Changes in inventories, receivables and other assets that are not attributable to investment activities |
373,155 | –10,021 |
| Changes in liabilities that are not attributable to financing activities | –18,075 | 10,491 |
| Interest paid | –6,098 | –3,266 |
| Interest received | 899 | 241 |
| Income tax payments | –10,430 | –1,714 |
| Cash inflow/outflow from operating activities | 436,100 | –1,238 |
| Capital investments software and equipment | –974 | –2,680 |
| Payments received from the disposal of investment property | 6,443 | 29,133 |
| Payments for the development of investment property | –61 | –781 |
| Payments for the acquisition of participations | –1,030 | 0 |
| Payments received from the equity reduction of participations | 0 | 770 |
| Payments for investments in companies accounted for using the equity method | 0 | –1,309 |
| Payment received through distributions of companies accounted for using the equity method |
5,147 | 0 |
| Payments received from the repayment of shares of companies accounted for using the equity method |
6,565 | 0 |
| Payments for loans to companies in which participating interests are held | –181 | –60 |
| Payments received from the disposal of consolidated companies and other business units |
333,695 | 0 |
| Payments for the acquisition of consolidated companies and other business units | –42,366 | –256,310 |
| Cash inflow/outflow from investment/divestment activities | 307,238 | –231,237 |
| Borrowing of loans | 96,675 | 279,312 |
| Repayment of loans | –645,761 | –65,721 |
| Cash outflow/inflow from financing activities | –549,086 | 213,591 |
| Changes in cash | 194,252 | –18,884 |
| Cash 1 January | 179,141 | 145,361 |
| Effect of changes in exchange rates on cash | –1,942 | 0 |
| Cash 30 June | 371,451 | 126,477 |
| in EUR '000 | Share capital |
Capital reserve |
Retained earnings (legal reserve) |
Currency transla tion dif ference |
Consoli dated unappro priated profit |
Thereof at tributable to the share holders of the parent company |
Thereof at tributable to non controlling share holders |
Total |
|---|---|---|---|---|---|---|---|---|
| Balance 1 January 2015 | 69,385 | 198,576 | 505 | 1,030 | 139,743 | 409,239 | 809 | 410,048 |
| Net amount recognised directly in equity, where applicable less income taxes |
978 | 978 | 978 | |||||
| Non-controlling interests arising from the inclusion of new companies |
101,631 | 101,631 | ||||||
| Purchases of shares of non-controlling shareholders |
2,147 | –64,558 | –62,411 | |||||
| Disposals of shares of non-controlling shareholders |
546 | –2,031 | –1,485 | |||||
| Net profit/loss for the period |
8,683 | 8,683 | 1,464 | 10,147 | ||||
| Balance 30 June 2015 | 69,385 | 198,576 | 505 | 2,008 | 151,119 | 418,900 | 37,315 | 458,908 |
| Balance 1 January 2016 | 76,324 | 191,637 | 505 | –869 | 254,004 | 518,099 | 18,190 | 539,791 |
| Net amount recognised directly in equity, where applicable less income taxes |
–7,178 | –7,178 | –7,178 | |||||
| Net profit/loss for the period |
211,273 | 211,273 | 19,285 | 230,558 | ||||
| BALANCE 30 JUNE 2016 | 76,324 | 191,637 | 505 | –8,047 | 465,277 | 722,194 | 37,475 | 763,171 |
AS OF 30 JUNE 2016 (FIRST HALF OF 2016)
PATRIZIA Immobilien AG ("PATRIZIA", "Company" or "Group") is a listed German stock corporation. The Company's headquarter is located at Fuggerstrasse 26 in 86150 Augsburg, Germany. PATRIZIA has been active as an investor and service provider in the real estate market for more than 30 years and operates in 15 countries across Europe. As an investment manager, PATRIZIA's services include asset and portfolio management, acquisitions and sales and fund management mainly through its own regulated investment platforms. As one of the leading real estate investment companies in Europe, the Company operates European-wide for large institutional clients as well as for retail clients. Currently the Company manages assets with a value of EUR 17.2 billion, mainly for insurance companies, pension fund institutions, sovereign wealth funds and savings banks.
The interim consolidated financial statements of PATRIZIA Immobilien AG for the first half of 2016 (1 January 2016 to 30 June 2016) were prepared in accordance with Article 37 (3) of the Wertpapierhandelsgesetz (WpHG – German Securities Trading Act) in conjunction with Article 37w (2) WpHG in line with IFRS and in compliance with the provisions of German commercial law additionally applicable as per Article 315a (1) of the Handelsgesetzbuch (HGB – German Commercial Code). All compulsory official announcements of the International Accounting Standards Board (IASB) that have been adopted by the EU in the context of the endorsement process (i.e. published in the Official Journal of the EU) have been applied.
From the perspective of the Company's management, the present unaudited interim consolidated financial statements for the period ended 30 June 2016 contain all of the information necessary to provide a true and fair view of the course of business and the earnings situation in the period under review. Earnings generated in the first six months of 2016 are not necessarily an indication of future earnings or of the expected total earnings for the fiscal year 2016.
When preparing the consolidated financial statements for the interim report in line with IAS 34 "Interim Financial Reporting", the Managing Board of PATRIZIA Immobilien AG must make assessments and estimates as well as assumptions that affect the application of accounting standards in the Group and the reporting of assets and liabilities as well as income and expenses. Actual amounts may differ from these estimates.
These interim consolidated financial statements have been prepared in accordance with the same accounting and assessment policies as the consolidated financial statements for the fiscal year 2015. A detailed description of the principles applied in preparing the interim consolidated financial statements and the accounting methods used can be found in the notes to the IFRS consolidated financial statements for the year ending 31 December 2015, which are contained in the Company's 2015 Annual Report.
The term "Harald" used in these interim consolidated financial statements relates to a principal investment acquired in the previous year, which was mainly sold in the period under review.
The unaudited interim consolidated financial statements are prepared in Euros. The amounts, including the previous year's figures, are stated in EUR thousands unless specified otherwise. Please note that small differences can arise in rounded amounts and percentages due to commercial rounding off figures.
All of the Company's subsidiaries are included in the consolidated financial statements of PATRIZIA Immobilien AG. The subsidiaries include all companies controlled by PATRIZIA Immobilien AG. In addition to the parent company, the scope of consolidation comprises 112 subsidiaries. They are included in the consolidated financial statements in line with the rules of full consolidation.
In addition to this, one participating interest in a SICAV is accounted for at equity in the consolidated financial statements. The SICAV is a stock corporation with variable equity in accordance with the laws of Luxembourg.
Furthermore, 28.3% of the limited liability capital is held in one project development company (in the form of a GmbH & Co. KG), while 30% is held in the associated general partner. A significant influence cannot be executed due to provisions in the partnership agreement meaning that management cannot be exercised, that a significant influence cannot be exerted on the management and that there is no entitlement to appoint members of the managing boards. Shares in this development company are accounted for at acquisition cost.
On the balance sheet date, two companies were not included in the scope of consolidation as they have only small or no business operations ongoing and are of subordinate importance for the Group and for the presentation of a true and fair view of the assets, liabilities, financial position and profit and loss of the Group.
As of 1 January 2016 the acquisition of the portfolio of buildings named "Stuttgart Südtor" was made indirectly through the acquisition of 94.9% of the shares in TAG Stuttgart-Südtor Projektleitungs GmbH & Co. KG, whose change of name to PATRIZIA GrundInvest Objekt Stuttgart Südtor GmbH & Co. KG was entered into the land register on 19 January 2016.
The acquisition of PATRIZIA GrundInvest Objekt Stuttgart Südtor GmbH & Co. KG in the first quarter of 2016 was accounted for as an acquisition of assets as no business operation according to and as described in IFRS 3.3 had been acquired. The purchase price was allocated on the individually identified assets and liabilities based on their fair values as of the acquisition date. As the shares of PATRIZIA GrundInvest Stuttgart Südtor GmbH & Co. geschlossene Investment-KG have been successfully placed with third parties (see also Company Sales), the company has been deconsolidated and is excluded from the scope of consolidation as of 30 June 2016.
Pursuant to a notarial deed of incorporation dated 5 May 2016, PATRIZIA Investment Management HoldCo S.à r.l. and PATRIZIA Investment Management S.C.S., both part of the scope of consolidation of PATRIZIA Immobilien AG, established PATRIZIA Trocoll House GP Limited with a share capital of GBP 100. The Company acts as general partner of the PATRIZIA Trocoll House LP.
Pursuant to a notarial deed of incorporation dated 26 May 2016, PATRIZIA Investment Management HoldCo S.à r.l. and PATRIZIA Investment Management S.C.S., both part of the scope of consolidation of PATRIZIA Immobilien AG, established PATRIZIA Trocoll House LP with a share capital is GBP 99. The purpose of the Company is to invest in companies that acquire, own or manage real estate assets.
PATRIZIA GrundInvest Kapitalverwaltungsgesellschaft mbH, part of the scope of consolidation of the PATRIZIA Immobilien AG, established PATRIZIA GrundInvest Den Haag Wohnen GmbH & Co. geschlossene Investment-KG, a closed investment limited partnership pursuant to a notarial deed of incorporation dated 4 February 2016. The share capital is EUR 10,000. The purpose of this company is the investment and management of the company's funds in accordance with a defined investment strategy on collective investment pursuant to Articles 261 to 272 KAGB (Kapitalanlagegesetzbuch – German Investment Code) to the benefit of investors. The investment strategy of the company is the direct investment in long-term leased real estate in different locations and shall be sold at the end of the fund's holding period.
With effect from 1 January 2016 PATRIZIA Immobilien AG has disposed of the directly held shares in the following companies in connection with the sale of the Harald Portfolio:
The sale resulted in an income from the deconsolidation in the amount of TEUR 193,239. This income is calculated as follows:
| in EUR '000 | 30.06.2016 |
|---|---|
| Purchase price received | 399,968 |
| Shares remaining in the Group at fair value | 21,495 |
| Disposed net assets | –228,224 |
| INCOME FROM THE DECONSOLIDATION OF SUBSIDIARIES | 193,239 |
In addition, the two following Companies have been excluded from the Group due to the lack of an active business operation:
This resulted in an income from the deconsolidation in the amount of TEUR 104.
In the course of the sale of shares of PATRIZIA GrundInvest Campus Aachen GmbH & Co. geschlossene Investment-KG, a closed-end fund of PATRIZIA GrundInvest Kapitalverwaltungsgesellschaft mbH, to third parties, and the accompanying loss of control through the company, an income from the deconsolidation of TEUR 177 was generated.
In the course of the sale of shares of PATRIZIA GrundInvest Stuttgart Südtor GmbH & Co. geschlossene Investment-KG, a closed-end fund of PATRIZIA GrundInvest Kapitalverwaltungsgesellschaft mbH, to third parties, and the accompanying loss of control through the Company, an income from deconsolidation of TEUR 3,410 was generated. As a consequence, PATRIZIA GrundInvest Objekt Stuttgart Südtor GmbH & Co. KG has also been excluded from the scope of consolidation.
Investment properties are those that are held for the purpose of earning rental income or for the capital appreciation, or both. They are not owner-occupied or held for sale in the ordinary course of business and investment properties are initially measured at cost. Following initial recognition, investment properties are measured at fair value. Any change herein is recognised as affecting net income in the income statement.
A detailed description of the accounting methods used can be found in the notes to the IFRS consolidated financial statements for the year ending at 31 December 2015, which are contained in the Company's 2015 Annual Report.
Participations in Associated Companies include the 10.1% share in PATRIZIA WohnModul I SICAV-FIS with headquarters in Luxembourg.
The strategy of PATRIZIA WohnModul I is the purchase of different types of real estate assets, including project developments and revitalisation stocks. As an exit strategy, the sale of blocks as well as condos are planned.
Through its participation in PATRIZIA WohnModul I SICAV-FIS, PATRIZIA is subject to the usual real estate specific risks such as market development in the event of condo sales and project developments, but also to fluctuations in the interest rates.
The Group's share in the profit of PATRIZIA WohnModul I SICAV-FIS for the first half of 2016 is TEUR 3,253 (30 June 2015: TEUR 3,018).
In the period under review, WohnModul I SICAV-FIS distributed profits with an amount of TEUR 5,148 to PATRIZIA Immobilien AG. This distribution was credited against Participations in Associated Companies not effecting the income statement. Furthermore a capital repatriation amounting to TEUR 6,565 took place.
Participations include the following main holdings:
Through the sale of 94.9% of the shares in Scan Deutsche Real Estate Kiel GmbH, Draaipunt Holding B.V., Promontoria Holding V B.V., and Promontoria Holding X B.V., as described under section 3 "company sales", the remaining stake of TEUR 21,495 is disclosed as participations.
Inventories include real estate assets that have been acquired with the purpose of resale within the ordinary business cycle. Assessment and qualification of an inventory is carried out at acquisition.
PATRIZIA has defined the operating business cycle as three years as the majority of the units to be disposed are usually sold during this time period. However, inventories remain classified as intended for sale even if the sale is not realised within three years.
Inventories are valued at acquisition or production cost. Acquisition costs comprise the directly attributable purchase and commitment costs. Production costs include the costs directly attributable to the real estate development process.
Cash and Cash Equivalents cover cash and short-term bank deposits that are held by the Group. The net asset value of these assets corresponds to their fair value.
The Company's share capital at the balance sheet date was EUR 76,323,533 (31 December 2015: EUR 76,323,533) and was divided into 76,323,533 (31 December 2015: 76,323,533) no-par value shares (shares with no nominal value). The development of equity is shown in the consolidated statement of changes in equity.
As of 30 June 2016, shares of non-controlling shareholders amounted to TEUR 37,475 (31 December 2015: TEUR 18,190).
In the period under review a share in the profit of TEUR 499 was allocated to non-controlling shareholders.
A reorganisation project caused an increase of other accruals considering severance payments and salary obligations in lieu of notice.
Financial Liabilities have the following maturity profile:
| in EUR '000 30.06.2016 |
2016 | 2017 | 2018 | 2019 – 2025 |
2026 | Total | |
|---|---|---|---|---|---|---|---|
| Bank loans | 0 | 0 | 12,000 | 0 | 0 | 12,000 | |
| Mortgage loans | 0 | 0 | 0 | 0 | 10,375 | 10,375 | |
| Bonded loans | 0 | 0 | 27,000 | 0 | 0 | 27,000 | |
| TOTAL | 0 | 0 | 39,000 | 0 | 10,375 | 49,375 | |
| in EUR '000 31.12.2015 |
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | Total |
| Bank loans | 197,541 | 0 | 0 | 0 | 0 | 0 | 197,541 |
| of which Harald | 197,541 | 0 | 0 | 0 | 0 | 0 | 197,541 |
| Mortgage loans | 202,150 | 0 | 76,400 | 108,341 | 0 | 236,678 | 623,569 |
| of which Harald | 73,000 | 0 | 76,400 | 108,341 | 0 | 236,678 | 494,419 |
| Bonded loans | 35,000 | 0 | 32,000 | 0 | 0 | 0 | 67,000 |
| Accrued interest and current account |
718 | 0 | 0 | 0 | 0 | 0 | 718 |
| of which Harald | 252 | 0 | 0 | 0 | 0 | 0 | 252 |
| TOTAL | 435,409 | 0 | 108,400 | 108,341 | 0 | 236,678 | 888,828 |
| OF WHICH HARALD | 270,793 | 0 | 76,400 | 108,341 | 0 | 236,678 | 692,212 |
Bank loans are accounted for at amortised cost. As the interest rates are usually variable, the Group is exposed to an interest rate risk. All loans are valued in EUR. All mortgage loans (TEUR 10,375) and bank loans (TEUR 12,000) relate to an investment by PATRIZIA GrundInvest Kapitalverwaltungsgesellschaft mbH. Maturities are shown in accordance with the contractually agreed terms of the loan agreements.
As of the balance sheet date, one bonded loan with an amount of TEUR 27,000 is shown in the consolidated financial statements as a long-term liability based on its maturity in June 2018.
Long-term Liabilities amount to TEUR 5,696 (31 December 2015: TEUR 9,262) and essentially consist of the long-term components of the management participation plan, which is described in detail under item 9.2 in the 2015 Annual Report.
Revenues are composed as follows:
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Sales proceeds of principal investments |
25,712 | 36,430 | –29.4% | 487,634 | 36,430 | – |
| Rental revenues | 6,932 | 3,851 | 80.0% | 13,274 | 10,105 | 31.4% |
| Revenues from management services |
73,138 | 54,505 | 34.2% | 73,138 | 54,505 | 34.2% |
| Revenues from ancillary costs | 2,534 | 1,186 | 113.7% | 2,792 | 1,053 | 165.1% |
| Miscellaneous | 2,396 | 580 | 313.1% | 2,397 | 714 | 235.7% |
| CONSOLIDATED REVENUES | 110,712 | 96,552 | 14.7% | 579,235 | 102,807 | 463.4% |
The revenues from management services include acquisitions and sales commissions, revenues from asset and fund management as well as management fees.
In the period under review, PATRIZIA realised TEUR 196,930 (30 June 2015: TEUR 5,277) of income from deconsolidation of subsidiaries, which is described under section "Scope of Consolidation – Company Sales".
Other Operating Income contains:
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Income from expired obligations | 1,948 | 3,008 | –35.2% | 1,948 | 3,008 | –35.2% |
| Income from payments in kind | 475 | 474 | 0.2% | 475 | 474 | 0.2% |
| Income from the decrease in the general provision |
81 | 16 | 406.3% | 81 | 16 | 406.3% |
| Income from reimbursement of lawyers' fees, court costs and payments of damages |
192 | 464 | –58.6% | 192 | 464 | –58.6% |
| Insurance compensations | 26 | 84 | –69.0% | 26 | 84 | –69.0% |
| Other | 305 | 2,665 | –88.6% | 3,657 | 3,033 | 20.6% |
| TOTAL | 3,027 | 6,711 | –54.9% | 6,379 | 7,079 | –9.9% |
Cost of Materials comprises the costs incurred in connection with the performance of the service and is composed as follows:
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Renovation and construction costs |
3,116 | 13,130 | –76.3% | 3,603 | 14,141 | –74.5% |
| Maintenance costs | 537 | 329 | 63.2% | 537 | 329 | 63.2% |
| Ancillary rental costs | 3,088 | 2,423 | 27.4% | 6,688 | 3,997 | 67.3% |
| TOTAL | 6,741 | 15,882 | –57.6% | 10,828 | 18,467 | –41.4% |
Other Operating Expenses consist of:
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Operating expenses | 7,412 | 6,994 | 6.0% | 8,354 | 6,524 | 28.1% |
| Administrative expenses | 5,837 | 4,944 | 18.1% | 6,101 | 5,062 | 20.5% |
| Selling expenses | 4,445 | 5,053 | –12.0% | 4,469 | 5,270 | –15.2% |
| Other expenses | 2,956 | 3,565 | –17.1% | 8,795 | 4,267 | 106.1% |
| TOTAL | 20,650 | 20,556 | 0.5% | 27,719 | 21,123 | 31.2% |
For the first half of 2016 Income from Participations totalled TEUR 6,839 (30 June 2015: TEUR 9,963) and contains the co-investments GBW, Harald and Seneca (previous year: GBW and SÜDEWO) and is composed as follows:
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Services provided as shareholder contributions |
4,732 | 8,352 | –43.3% | 4,732 | 8,352 | –43.3% |
| Performance-related shareholder compensation |
0 | 0 | – | 0 | 0 | – |
| Return on equity employed | 1,689 | 1,611 | 4.8% | 2,107 | 1,611 | 30.8% |
| TOTAL | 6,421 | 9,963 | –35.6% | 6,839 | 9,963 | –31.4% |
This item includes additions to accruals for reorganisation and current advisory costs (see also section "Other accruals").
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|||
|---|---|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
Change | |
| Interest on bank deposits | –70 | 55 | –227.3% | –44 | 55 | –180.0% |
| Other interest | 866 | 425 | 103.8% | 1,199 | 1,575 | –23.9% |
| Financial income | 796 | 480 | 65.8% | 1,155 | 1,630 | –29.1% |
| Interest on revolving credit facilities and bank loans |
–1,611 | –830 | 94.1% | –5,566 | –1,413 | 293.9% |
| Other financial expenses | –2,465 | –2,046 | 20.5% | –619 | –3,772 | –83.6% |
| Financial expenses | –4,076 | –2,876 | 41.7% | –6,185 | –5,185 | 19.3% |
| FINANCIAL RESULT | –3,280 | –2,396 | 36.9% | –5,030 | –3,555 | 41.5% |
| Financial result adjusted for valuation effects |
–3,280 | –2,396 | 36.9% | –5,030 | –3,555 | 41.5% |
Currency differences of –4,238 TEUR (30 June 2015: –7 TEUR) are shown in the consolidated income statement in the first half of 2016. This includes TEUR 672 (30 June 2015: TEUR 543) of realised currency gains.
| 1st half 2016 without Harald |
1st half 2015 without Harald |
1st half 2016 incl. Harald |
1st half 2015 incl. Harald |
|
|---|---|---|---|---|
| 01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
01.01. – 30.06.2016 in EUR '000 |
01.01. – 30.06.2015 in EUR '000 |
|
| Profit attributable to Group's shareholder |
3,742 | 5,078 | 211,273 | 8,683 |
| Number of shares issued | 76,323,533 | 69,385,030 | 76,323,533 | 69,385,030 |
| Weighted number of shares | 76,323,533 | 76,323,533 | 76,323,533 | 76,323,533 |
| EARNINGS PER SHARE (UNDILUTED) |
0.05 | 0.07 | 2.77 | 0.11 |
Applying IAS 33.64, the weighted number of shares for the same quarter in the previous year (69,385,030) was adjusted, assuming that the weighted number of shares throughout the year for 2015 corresponds to that of 2016.
Segment Reporting categorises the business segments according to whether PATRIZIA acts as investor or as service provider. In line with the Group's reporting for management purposes and in accordance with IFRS 8 "Operating segments", two segments have been identified based on functional criteria: Investments and Management Services. In addition, the operating segments are split in German and International, based on the location of the related property asset. International subsidiaries continue to be reported as a total for the time being due to the still low contribution of the respective national businesses to total revenues and results.
In addition, PATRIZIA Immobilien AG (corporate administration) includes the management of international subsidiaries as Corporate. Corporate does not constitute an operating segment with an obligation to report but is presented separately due to its activity as an internal and transnational service provider.
The elimination of intracompany revenues and interest charges as well as interim results is conducted via the "Consolidation" column. The "Corporate" column thus consolidates all internal services between the Investments and Management Services segments and the Company within a country. It represents the external service provided by the Group in the region. Transnational consolidation is performed in the row "Consolidation".
The Investments segment primarily combines principal investments and participations.
The Management Services segment covers a broad spectrum of real estate services, in particular the acquisition and sales of residential and commercial properties or portfolios (Acquisition and Sales), the management of real estate (Property Management), value-oriented management of real estate portfolios (Asset Management) as well as strategic consulting with regard to investment strategy, portfolio planning and allocation (Portfolio Management) and the execution of complex, non-standard investments (Alternative Investments). Special funds are also established and managed – including separate accounts – via the Group's own investment management companies. Commission revenues generated by services, both from co-investments and from third parties, are reported in the Management Services segment. These also include income from participating interests that are granted as interim profits for asset management of the co-investment GBW.
The range of services provided by the segment Management Services is increasingly required by third parties as PATRIZIA's AuM grow.
PATRIZIA's internal control and reporting measures are primarily based on the principles of accounting under IFRS. The Group measures the success of its segments using segment earnings parameters which, for the purposes of internal control and reporting, are referred to as EBT and operating EBT (operating income).
EBT, the measure of segment earnings, comprises total revenues, income from the sale of investment property, changes in inventories, income from the deconsolidation of subsidiaries, cost of materials and staff costs, other operating income and expenses, reorganisation expenses, changes in the value of investment property, amortisation, as well as earnings from investments, (including investments valued at equity) and the financial result and gains/losses from currency translation.
Certain adjustments are made in the course of determining operating EBT (operating income). Adjustments are made for non-cash effects such as amortisation of other intangible assets (i.e. fund management contracts), unrealised changes in the value of the investment property, gains/ losses from currency translation and reorganisation expenses. Cash-effective realised valuation changes from the sale of investment property and currency translation effects are added.
Segments generate inter-company revenues and these services are settled at market prices.
Due to the capital intensity of the segment, the assets and liabilities in the investment segment, which is primarily attributable to Germany, account for the majority of the Group's total assets and liabilities. For this reason, no breakdown of assets and liabilities by individual segments is provided.
The individual segments are set out as follows. The reporting of amounts in EUR thousands can result in rounding differences. However, individual items are calculated on the basis of non-rounded figures.
| in EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| Germany | |||||
| Revenues from principal investments | 476,472 | 0 | 0 | 0 | 476,472 |
| Rental revenues | 10,813 | 0 | 0 | –40 | 10,773 |
| Revenues from management services | 0 | 79,440 | 0 | –18,310 | 61,130 |
| Other | 1,480 | 251 | 0 | –18 | 1,713 |
| Revenues | 488,765 | 79,691 | 0 | –18,368 | 550,088 |
| International1 | |||||
| Revenues from principal investments | 11,162 | 0 | 0 | 0 | 11,162 |
| Rental revenues | 2,500 | 0 | 0 | 0 | 2,500 |
| Revenues from management services | 0 | 19,243 | 0 | –1,078 | 18,165 |
| Other | 3,452 | 55 | 0 | 0 | 3,507 |
| Revenues | 17,114 | 19,298 | 0 | –1,078 | 35,334 |
| Corporate | |||||
| Revenues | 0 | 0 | 11,703 | 0 | 11,703 |
| Consolidation | |||||
| Revenues | 0 | –6,485 | 0 | –11,405 | –17,890 |
| Group | |||||
| Revenues from principal investments | 487,634 | 0 | 0 | 0 | 487,634 |
| Rental revenues | 13,313 | 0 | 0 | –40 | 13,273 |
| Revenues from management services | 0 | 92,226 | 11,585 | –30,673 | 73,138 |
| Other | 4,932 | 278 | 118 | –138 | 5,190 |
| Revenues | 505,879 | 92,504 | 11,703 | –30,851 | 579,235 |
| Details | |||||
| Total operating performance | |||||
| Germany | 306,702 | 84,750 | 0 | –18,368 | 373,084 |
| International1 | 10,057 | 19,704 | 0 | –1,090 | 28,671 |
| Corporate | 0 | 0 | 12,567 | 0 | 12,567 |
| Consolidation | 0 | –6,485 | 0 | –11,509 | –17,994 |
| Group | 316,759 | 97,969 | 12,567 | –30,967 | 396,328 |
| Cost of materials and cost of purchased services |
|||||
| Germany | –9,500 | –13,006 | 0 | 253 | –22,253 |
| International1 | –1,573 | –5,443 | 0 | 0 | –7,016 |
| Corporate | 0 | 0 | 0 | 0 | 0 |
| Consolidation | 0 | 6,427 | 0 | 1,661 | 8,088 |
| Group | –11,073 | –12,022 | 0 | 1,914 | –21,181 |
| Staff costs | |||||
| Germany | 0 | –35,357 | 0 | 0 | –35,357 |
| International1 | 0 | –9,405 | 0 | 0 | –9,405 |
| Corporate | 0 | 0 | –11,487 | 0 | –11,487 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | 0 | –44,762 | –11,487 | 0 | –56,249 |
| Other operating expenses | |||||
| Germany | –27,941 | –16,570 | 0 | 18,272 | –26,239 |
| International1 | –1,543 | –3,400 | 0 | 1,090 | –3,853 |
| Corporate | 0 | 0 | –7,460 | 0 | –7,460 |
| Consolidation | 0 | 59 | 0 | 9,774 | 9,833 |
| Group | –29,484 | –19,911 | –7,460 | 29,136 | –27,719 |
| Income from participations and earnings from companies accounted for using the equity method |
|||||
| Germany | 1,537 | 4,733 | 0 | 0 | 6,270 |
| International1 | 3,822 | 0 | 0 | 0 | 3,822 |
| Corporate | 0 | 0 | 0 | 0 | 0 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | 5,359 | 4,733 | 0 | 0 | 10,092 |
1 France, Great Britain, Luxembourg, Netherlands, Nordics, Spain
| in EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| Reorganisation expenses | |||||
| Germany | 0 | –10,072 | 0 | 0 | –10,072 |
| International1 | 0 | 0 | 0 | 0 | 0 |
| Corporate | 0 | 0 | –1,241 | 0 | –1,241 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | 0 | –10,072 | –1,241 | 0 | –11,313 |
| Amortisation of fund management | |||||
| contracts, software and equipment | |||||
| Germany | –4 | –1,002 | 0 | 0 | –1,006 |
| International1 | 0 | –73 | 0 | 0 | –73 |
| Corporate | 0 | 0 | –2,214 | 0 | –2,214 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | –4 | –1,075 | –2,214 | 0 | –3,293 |
| Financial Result | |||||
| Germany | –529 | –544 | 0 | 0 | –1,073 |
| International1 | –68 | 128 | 0 | 0 | 60 |
| Corporate | 0 | 0 | –4,017 | 0 | –4,017 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | –597 | –416 | –4,017 | 0 | –5,030 |
| Gains/losses from currency translation | |||||
| Germany | 57 | –71 | 0 | 0 | –14 |
| International1 | –1,977 | 78 | 0 | 0 | –1,899 |
| Corporate | 0 | 0 | –2,325 | 0 | –2,325 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | –1,920 | 7 | –2,325 | 0 | –4,238 |
| EBT (IFRS) | |||||
| Germany | 270,322 | 12,861 | 0 | 157 | 283,340 |
| International1 | 8,718 | 1,589 | 0 | 0 | 10,307 |
| Corporate | 0 | 0 | –16,177 | 0 | –16,177 |
| Consolidation | 0 | 1 | 0 | –74 | –73 |
| Group Adjustments |
279,040 | 14,451 | –16,177 | 83 | 277,397 |
| Germany | 1,659 | 11,200 | 1,241 | 0 | 14,100 |
| Significant non-operating earnings | –475 | –11,200 | –1,241 | 0 | –12,916 |
| Fund agreement amortisation | 0 | –984 | 0 | 0 | –984 |
| Reorganisation expenses | 0 | –10,072 | –1,241 | 0 | –11,313 |
| Unrealised currency changes | –475 | –144 | 0 | 0 | –619 |
| Realised fair value | 1,184 | 0 | 0 | 0 | 1,184 |
| International1 | 1,982 | –14 | 0 | 0 | 1,967 |
| Significant non-operating earnings | –1,982 | 14 | 0 | 0 | –1,967 |
| Fund agreement amortisation | 0 | 0 | 0 | 0 | 0 |
| Unrealised currency changes | –1,982 | 14 | 0 | 0 | –1,967 |
| Corporate | 0 | 0 | 2,324 | 0 | 2,324 |
| Significant non-operating earnings | 0 | 0 | –2,324 | 0 | –2,324 |
| Unrealised currency changes | 0 | 0 | –2,324 | 0 | –2,324 |
| Group | 3,640 | 11,186 | 3,565 | 0 | 18,391 |
| Operating result (adjusted EBT)2 | |||||
| Germany3 | 271,981 | 24,061 | 1,241 | 157 | 297,440 |
| International1 | 10,700 | 1,575 | 0 | 0 | 12,274 |
| Corporate | 0 | 0 | –13,853 | 0 | –13,853 |
| Consolidation | 0 | 1 | 0 | –74 | –73 |
| Group | 282,680 | 25,637 | –12,612 | 83 | 295,788 |
1 France, Great Britain, Luxembourg, Netherlands, Nordics, Spain
² EUR 231.8m excluding Harald related taxes and minorities
³ EUR 208.0m excluding Harald related taxes of EUR 44.7m and minorities of EUR 19.3m
| Germany Revenues from principal investments 36,430 0 0 0 36,430 Rental revenues 8,352 0 0 –93 8,259 Revenues from management services 0 47,027 0 –2,552 44,476 Other 3,088 741 0 –9 3,820 Revenues 47,869 47,768 0 -2,653 92,984 International1 Revenues from principal investments 0 0 0 0 0 Rental revenues 394 0 0 0 394 Revenues from management services 0 18,481 0 0 18,481 Other 0 142 0 0 142 Revenues 394 18,623 0 0 19,017 Corporate Revenues 0 0 11,422 0 11,422 Consolidation Revenues 0 –9,267 0 –11,349 –20,616 Group Revenues from principal investments 36,430 0 0 0 36,430 Rental revenues 8,746 0 1 –93 8,654 Revenues from management services 0 56,242 10,940 –13,378 53,803 Other 3,088 882 482 –531 3,921 Revenues 48,263 57,123 11,422 –14,002 102,808 Details Total operating performance Germany 31,584 48,873 0 –2,653 77,803 International1 5,675 20,896 0 –8 26,563 Corporate 0 0 12,311 0 12,311 Consolidation 0 –9,267 0 –11,496 –20,764 Group 37,258 60,501 12,311 –14,157 95,913 Cost of materials and cost of purchased services Germany –18,644 –8,562 0 184 –27,022 International1 0 –9,066 0 0 –9,066 Corporate 0 0 0 0 0 Consolidation 0 9,215 0 1,261 10,476 Group –18,644 –8,413 0 1,445 –25,612 Staff costs Germany 0 –23,723 0 0 –23,723 International1 0 –6,403 0 0 –6,403 Corporate 0 0 –13,354 0 –13,354 Consolidation 0 0 0 0 0 Group 0 –30,126 –13,354 0 –43,480 Other operating expenses Germany –5,313 –18,077 0 2,837 –20,553 International1 –145 –2,588 0 8 –2,726 Corporate 0 0 –8,144 0 –8,144 Consolidation –50 53 0 10,297 10,300 Group –5,508 –20,612 –8,144 13,141 –21,123 Income from participations and earnings from companies accounted for using the equity method Germany 3,708 8,331 0 0 12,039 International1 1,010 0 0 0 1,010 Corporate 0 0 0 0 0 Consolidation 0 0 0 –68 –68 Group 4,718 8,331 0 –68 12,981 |
in EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|---|
1 France, Great Britain, Luxembourg, Netherlands, Nordics, Spain
| in EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| Amortisation of fund management contracts, software and equipment |
|||||
| Germany | –12 | –1,012 | 0 | 0 | –1,024 |
| International1 | 0 | –48 | 0 | 0 | –48 |
| Corporate | 0 | 0 | –2,397 | 0 | –2,396 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | –12 | –1,061 | –2,397 | 0 | –3,469 |
| Financial Result | |||||
| Germany | –6,754 | -734 | 0 | 0 | –7,488 |
| International1 | 2,470 | -89 | 0 | 0 | 2,381 |
| Corporate | 0 | 0 | 1,552 | 0 | 1,552 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | –4,284 | –823 | 1,552 | 0 | –3,555 |
| Gains/losses from currency translation | |||||
| Germany | –1,064 | 92 | 0 | 0 | –972 |
| International1 | –769 | 120 | 0 | 0 | –649 |
| Corporate | 0 | 0 | 1,614 | 0 | 1,614 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | –1,833 | 212 | 1,614 | 0 | –7 |
| EBT (IFRS) | |||||
| Germany | 3,504 | 5,189 | 0 | 367 | 9,060 |
| International1 | 8,241 | 2,821 | 0 | 0 | 11,062 |
| Corporate | 0 | 0 | –8,418 | 0 | –8,418 |
| Consolidation | –50 | 0 | 0 | –6 | –56 |
| Group | 11,696 | 8,010 | –8,418 | 361 | 11,648 |
| Adjustments | |||||
| Germany | 6,022 | 899 | 0 | 0 | 6,921 |
| Significant non-operating earnings | –1,058 | –899 | 0 | 0 | –1,956 |
| Market valuation income derivatives | 801 | 0 | 0 | 0 | 801 |
| Market valuation | |||||
| expenditures derivatives | –15 | 0 | 0 | 0 | –15 |
| Fund agreement amortisation | 0 | –984 | 0 | 0 | –984 |
| Reorganisation expenses | 0 | 0 | 0 | 0 | 0 |
| Unrealised currency changes | –1,843 | 86 | 0 | 0 | –1,758 |
| Realised fair value | 4,965 | 0 | 0 | 0 | 4,965 |
| International1 | 1,685 | 21 | 0 | 0 | 1,706 |
| Significant non-operating earnings | –1,685 | –21 | 0 | 0 | –1,706 |
| Fund agreement amortisation | 0 | 0 | 0 | 0 | 0 |
| Unrealised currency changes | –1,685 | –21 | 0 | 0 | –1,706 |
| Corporate | 0 | 0 | –1,875 | 0 | –1,875 |
| Significant non-operating earnings | 0 | 0 | 1,875 | 0 | 1,875 |
| Unrealised currency changes | 0 | 0 | 1,875 | 0 | 1,875 |
| Group | 7,708 | 919 | –1,875 | 0 | 6,752 |
| Operating result (adjusted EBT) | |||||
| Germany | 9,527 | 6,087 | 0 | 367 | 15,981 |
| International1 | 9,926 | 2,842 | 0 | 0 | 12,768 |
| Corporate | 0 | 0 | –10,293 | 0 | –10,292 |
| Consolidation | –50 | 0 | 0 | –6 | –56 |
| Group | 19,403 | 8,929 | –10,293 | 361 | 18,400 |
1 France, Great Britain, Luxembourg, Netherlands, Nordics, Spain
At the reporting date, the Management Board of PATRIZIA Immobilien AG was not aware of any dealings, contracts or legal transactions with associated or related parties and/or companies for which the Company does not receive appropriate compensation at arm's length consideration. All such transactions are conducted at arm's length and do not differ substantially from transactions with third parties.
The disclosures on related party transactions in section 9.3 of the notes to the consolidated financial statements in the 2015 Annual Report remain valid.
To the best of their knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the legal representatives of PATRIZIA Immobilien AG affirm that the interim consolidated financial statements give a true and fair view of the assets, liabilities and financial position and profit or loss of the Group. The interim management report of the Group includes a fair review of the development and course of business and the position of the Group, as well as a description of the principal opportunities and risks associated with the expected development of the Group for the remaining financial year.
CEO CFO COO
Wolfgang Egger Karim Bohn Klaus Schmitt
| Interim report for the first nine month of 2016 | |
|---|---|
| 8 November 2016 | with investor and analyst conference call |
Fuggerstrasse 26 86150 Augsburg Germany P +49 821 50910-000 F +49 821 50910-999 [email protected] g www.patrizia.ag
Michael Tegeder P +49 821 50910-401 F +49 821 50910-399 [email protected]
Andreas Menke P +49 821 50910-655 F +49 821 50910-695 [email protected]
Verena Schopp de Alvarenga P +49 821 50910-351 F +49 821 50910-399 [email protected]
This interim report was published on 9 August 2016. This is a translation of the German interim report. In case of doubt, the German version shall apply. Both versions are available on our website:
www.patrizia.ag/investor-relations/finanzberichte/quartalsberichte www.patrizia.ag/en/investor-relations/financial-reports/quarterly-reports
Fuggerstrasse 26 86150 Augsburg Germany P +49 821 50910-000 F +49 821 50910-999 [email protected] www.patrizia.ag
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