Quarterly Report • Nov 7, 2013
Quarterly Report
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| EUR '000 | 3rd quarter 2013 | 3rd quarter 2012 9 months 2013 | 9 months 2012 | |
|---|---|---|---|---|
| 01.07. – 30.09.2013 |
01.07. – 30.09.2012 |
01.01. – 30.09.2013 |
01.01. – 30.09.2012 |
|
| Revenues | 65,642 | 59,233 | 155,403 | 162,607 |
| Total operating performance | 47,890 | 47,499 | 137,681 | 136,221 |
| EBITDA | 6,223 | 14,188 | 16,753 | 34,332 |
| EBIT | 4,674 | 13,083 | 12,509 | 31,240 |
| EBT | 2,198 | 7,287 | 19,985 | 16,314 |
| Operating result1 | 521 | 12,537 | 18,660 | 26,057 |
| Net profi t | 1,939 | 6,426 | 19,685 | 11,736 |
| EUR '000 | 30.09.2013 | 31.12.2012 |
|---|---|---|
| Non-current assets | 447,761 | 463,423 |
| Current assets | 450,723 | 488,130 |
| Equity | 356,408 | 336,387 |
| Equity ratio (in %) | 39.7 | 35.4 |
| Non-current liabilities | 105,408 | 345,414 |
| Current liabilities | 436,668 | 269,752 |
| Total assets | 898,484 | 951,553 |
| ISIN | DE000PAT1AG3 |
|---|---|
| SIN (Security Identifi cation Number) | PAT1AG |
| Code | P1Z |
| Share capital at 30 September 2013 | EUR 63,077,300 |
| No. of shares in issue at 30 September 2013 | 63,077,300 |
| Third quarter 2013/9 months 2013 high2 | EUR 8.25/EUR 9.75 |
| Third quarter 2013/9 months 2013 low2 | EUR 6.56/EUR 6.05 |
| Closing price 20122 | EUR 6.46 |
| Closing price at 30 September 20132 | EUR 7.40 |
| Share price performance | 14.6% |
| Market capitalisation at 30 September 2013 | EUR 466.8 million |
| Average trading volume per day | |
| (9 months of 2013)3 | 151,700 shares |
| Indices | SDAX, GEX, DIMAX |
1 Without amortisation of other intangible assets (fund management contracts), adjusted for profi t/loss from interest rate hedges without cash eff ect. Realised changes in the value of investment property included.
2 Closing price Xetra-trading
3 All German stock exchanges
In our previous report on the fi rst half of 2013, we announced that achieving the operating result target set for 2013 would not be straightforward. In some instances, this statement led to great uncertainty and was even interpreted as a veiled profi t warning. This was by no means the case. We still stand by the operating result target that we set in May – even though our fi gures after the fi rst three quarters would not appear to favour this and achieving the targets for 2013 remains considerably more challenging than we anticipated at the start of the year.
We can already see that 2013 is/will be an extraordinary year for PATRIZIA in all regards. Follow ing our tremendous growth in 2012, we have again increased signifi cantly in size this year. PATRIZIA is one of the fastest growing investment and asset managers. This is primarily refl ected in the rise in assets under management, in our drive towards European expansion and hence in the number of our employees, too.
Now in the fi nal quarter of the year, we are on the way towards reaching our target, well aware that we still have plenty to do. In May, we gave you our assessment of PATRIZIA's earnings situa tion for 2013 and forecast an operating result of between EUR 47 and 49 million. It is undeniable that since then, we have experienced many deviations from our plans, both positive and negative.
Higher costs incurred in achieving AIFM compliance across Europe for the PATRIZIA Group had a negative impact. We also experienced up-front costs for various transaction projects, including for projects that were ultimately not implemented. The income side reveals budget variances relating to the purchase of residential real estate, because the acquisition fees for individual properties in Germany for the residential funds remain below expectations due to the tight market conditions. Overall, the higher expenses on the one hand and the lack of revenue on the other hand could reduce the result by around EUR 7 to 10 million by the end of the year. More over, the delays in our new-build project in Frankfurt could not have been foreseen: the insolvency of a major trade company means that completion of the six VERO town villas, which was planned for the fourth quarter, will now be delayed into the fi rst half of 2014. As with the missing acquisition fees, we will have to compensate elsewhere for the associated expected contribution to results of EUR 5 to 6 million.
During the current year we have, however, experienced many successes that were not part of our plans – for example our two most recent portfolio acquisitions. The acquisition fees secured through the acquisition of the Deikon portfolio (retail properties) and of the Hessen portfolio (offi ce properties) mean we have already largely achieved the necessary level of compensation. Moreover, our acquisition of the Hessen portfolio represents Germany's largest commercial real estate transaction of the year so far. We are currently engaged in promising negotiations to complete a further project of a similar volume by the end of the year. If we succeed in securing this transaction – and the signs are currently very promising – we will achieve our forecast.
Despite the successes, we have to report a weak third quarter in terms of results. Although residential property resale and block sales were very satisfactory, there were no residential purchases during the quarter and hence no associated acquisition fees were received. The acquisition fees from the two aforementioned deals will only be received in the fourth quarter when the deals are closed. In addition, the asset management fees for the second half of 2013 relating to the two co-investments Südewo and GBW were already posted in the second quarter because the contracts stipulate that our performance must be remunerated half-yearly in advance. Against the backdrop of the confi rmed forecast, the third quarter has again shown that a quarterly approach is not necessarily appropriate within the real estate sector.
Our other fi nancial targets, which include reducing our debts to EUR 350 million (with around EUR 270 million in bank loans and just under EUR 80 million in two bonded loans), are linked to the achievement of our operating result target. The current equity ratio of 39.7% will also have achieved our target of 45.0% by the end of the year. In our operating business, notarial deeds indicate that we will sell more than our 2013 target of 1,800 residential units.
We still do not see any reason to adjust our results forecast for 2013. We still expect to end the fi scal year with an operating result of at least EUR 47 million.
The PATRIZIA Managing Board
Wolfgang Egger Arwed Fischer Klaus Schmitt CEO CFO COO
FOR THE FIRST THREE QUARTERS OF 2013
The core indicators for Germany's economy show stable development, and despite a weak patch in the fi rst quarter of 2013, they reveal a positive trend compared with the previous year. Implementation of the current structural reforms in the European Union will continue to impact favourably on economic fundamentals. The momentum within the British economy has strengthened continuously since the start of the year. The Scandinavian countries are also showing signs of a positive economic outlook, although Finland's contribution to growth is expected to be less.
Although the continuing price rise in real estate in Germany was maintained in the second quarter of 2013, reduced momentum is expected over the long term. The level of transactions for the last six months was signifi cantly up on the previous year and the growing demand from national and international investors will continue the upward trend over the remaining course of the year. Increased interest in residential real estate is apparent within Europe – especially in Great Britain and France. However, Germany remains the dominant institutional residential investment market.
In the fi rst half of the year, the German commercial real estate market revealed a transaction volume of over EUR 10 billion. In both the core and value-add segments, high sales levels were particularly noticeable in the Frankfurt am Main area and also in Munich and Cologne/Düsseldorf. Prime yields for offi ce properties remained largely stable in Germany's top 7 cities. A rise in commercial property transactions was apparent at European level, indicating continuing buoyant levels of interest among institutional and private investors.
On 30 September 2013, the PATRIZIA share price was EUR 7.40. The share climbed 14.6% over the start of the year. The highs and lows (closing prices) for the fi rst nine months varied between EUR 6.05 and EUR 9.75. With an average of 151,700 shares per day, the trading volume continued at the high levels of recent months (fi rst half of 2013: 146,000 shares/day, 2012: 89,200 shares/day).
The Annual General Meeting on 12 June 2013 agreed on a capital increase from retained earnings in order to issue bonus shares in a ratio of 10:1. The capital increase was entered into the Commercial Register on 8 July. The new shares were added after the close of markets on 24 July. As a result, the number of shares issued rose by 10% to 63,077,300 in the third quarter. Share capital now totals EUR 63,077,300, representing an increase of EUR 5,734,300.
As at 30 September 2013, there was a further increase in the number of permanent employees at PATRIZIA to 689 (30 June 2013: 636 employees, +8.3%; 30 September 2012: 567 employees, +21.5%). Of these, 29 employees worked at PATRIZIA's international branches, a further 64 were employed as part-time staff and 39 as vocational trainees and students of Duale Hochschule Stuttgart majoring in real estate. In terms of full-time equivalents, PATRIZIA had 628 employees at the end of the third quarter (30 June 2013: 585 employees, +7.4%; 30 September 2012: 534 employees, +17.6%). The number of employees will rise further by the end of the year due to the expansion of investment and asset manager activities combined with a rise in assets under management; from 2014, it will then remain largely stable.
| 3rd quarter 2013 | 3rd quarter 2012 | 9 months 2013 | 9 months 2012 | 2012 | |
|---|---|---|---|---|---|
| 01.07. – | 01.07. – | 01.01. – | 01.01. – | 01.01. – | |
| 30.09.2013 | 30.09.2012 | 30.09.2013 | 30.09.2012 | 31.12.2012 | |
| Own stock1 | 778 | 551 | 1,220 | 979 | 1,709 |
| Residential property | |||||
| resale | 169 | 219 | 553 | 615 | 924 |
| Average sales price in | |||||
| EUR/sqm | 2,652 | 2,466 | 2,633 | 2,384 | 2,513 |
| Block sales | 609 | 332 | 667 | 364 | 785 |
| Average sales price in | |||||
| EUR/sqm | 1,309 | 1,711 | 1,397 | 1,724 | 1,667 |
| Average rental income in EUR/sqm |
7.71 | 7.55 | 7.66 | 7.58 | 7.60 |
| Co-investments2 | 264 | 165 | 746 | 318 | 559 |
| Residential property | |||||
| resale3 | 145 | 148 | 456 | 292 | 482 |
| Block sales | 119 | 17 | 290 | 26 | 77 |
| Services2 | 51 | 35 | 234 | 92 | 428 |
| Residential property | |||||
| resale | 3 | 3 | 5 | 13 | 20 |
| Block sales | 48 | 32 | 229 | 79 | 408 |
| TOTAL | 1,093 | 751 | 2,200 | 1,389 | 2,696 |
1 Transfer of ownership, usage and encumbrances (purchase price payments become due at the time of the commercial changeover and are thus recognised in profi t or loss)
2 Notarial deeds (sales commission becomes payable at the time of the notarial deed and is therefore recognised in profi t or loss)
3 Including new-build sales from project developments
The regional breakdown for residential property resales and block sales in the third quarter of 2013 is as follows:
RESIDENTIAL PROPERTY RESALES AND BLOCK SALES IN THE THIRD QUARTER OF 2013
| Region/city | Number of units sold | Area sold in sqm | ||||||
|---|---|---|---|---|---|---|---|---|
| Resi dential property resale |
Block sales |
Total | Share in % |
Resi dential property resale |
Block sales |
Total | Share in % |
|
| Munich | 124 | 0 | 124 | 15.9 | 9,359 | 0 | 9,359 | 21.0 |
| Berlin | 9 | 397 | 406 | 52.2 | 756 | 16,698 | 17,454 | 39.2 |
| Dresden | 0 | 152 | 152 | 19.5 | 0 | 10,284 | 10,284 | 23.1 |
| Leipzig | 0 | 60 | 60 | 7.7 | 0 | 5,104 | 5,104 | 11.5 |
| Cologne/Düsseldorf | 31 | 0 | 31 | 4.0 | 2,139 | 0 | 2,139 | 4.8 |
| Hamburg | 5 | 0 | 5 | 0.6 | 209 | 0 | 209 | 0.5 |
| TOTAL | 1691 | 6092 | 778 | 100 | 12,463 | 32,086 | 44,549 | 100 |
Of these, 101 apartments were reported under investment property.
Of these, 152 apartments were reported under investment property.
The area of residential property resale sold a total of 169 units from own stocks in the third quarter of 2013, 22.8% fewer than in the same period of the previous year (219 units). 69% of the properties were purchased by private investors. Owner-occupiers and tenants accounted for signifi cantly lower shares with 20% and 11% respectively.
Three transactions with a total of 609 units were reported in income in the area of block sales. The two block sales in Berlin and Dresden of around 550 units and with a volume of EUR 37.8 million that were originally expected in the second quarter ultimately took place in the third quarter of 2013.
The following is a summary of our portfolio after taking into account the sales completed in the third quarter of 2013 of 778 units, redensifi cation measures and consolidations.
| Region/city | Number of units | Area in sqm | ||||||
|---|---|---|---|---|---|---|---|---|
| Resi dential property resale |
Asset repo sitioning |
Total | Share in % |
Resi dential property resale |
Asset repo sitioning |
Total | Share in % |
|
| Cologne/ | ||||||||
| Düsseldorf | 442 | 739 | 1,181 | 25.9 | 38,647 | 67,978 | 106,625 | 31.8 |
| Munich | 770 | 135 | 905 | 19.8 | 60,613 | 12,342 | 72,955 | 21.8 |
| Leipzig | 0 | 828 | 828 | 18.1 | 0 | 47,874 | 47,874 | 14.3 |
| Frankfurt/Main | 5 | 721 | 726 | 15.9 | 303 | 45,664 | 45,967 | 13.7 |
| Hamburg | 48 | 562 | 610 | 13.4 | 3,473 | 35,661 | 39,134 | 11.7 |
| Hanover | 0 | 235 | 235 | 5.2 | 0 | 16,215 | 16,215 | 4.8 |
| Berlin | 38 | 40 | 78 | 1.7 | 3,299 | 2,720 | 6,019 | 1.8 |
| TOTAL | 1,303 | 3,260 | 4,563 | 100 | 106,335 | 228,454 | 334,789 | 100 |
In the third quarter of 2013 there were no major changes in the Südewo co-investment. The investment is developing in line with the business plan.
The second tranche of the acquisition fee from the GBW transaction was posted to revenues in the third quarter of 2013.
In July 2013 PATRIZIA announced the acquisition of the Deikon portfolio for institutional investors. The real estate purchase price for the 86 retail properties with tenants such as Netto, REWE, EDEKA, PENNY and Lidl is around EUR 178 million. Closing of the deal is still scheduled for the middle of November 2013. PATRIZIA will have a 5.1% (EUR 5.3 million) share in the equity of the fi nal co-investment structure.
July 2013 also saw the closing of the deal for the IQ Winnersh business park near London for around EUR 285 million (GBP 245 million). PATRIZIA UK acquired the 118,200 sqm commercial estate comprising offi ces, warehouses, data centres as well as industrial and retail sites together with the joint venture partner Oaktree Capital Management, L.P. The purchase also includes four hectares of adjoining building land, so that added value can be generated in the long term and the range of tenants extended through the development of a new site. After defi nitive fi nancing, PATRIZIA's share is 5.0% (GBP 3.215 million equates to EUR 3.845 million).
No properties were transferred to the funds of PATRIZIA WohnInvest KAG mbH in the third quarter of 2013 and no new properties were secured by purchase agreement.
In the third quarter of 2013, PATRIZIA GewerbeInvest KAG mbH saw commercial real estate with a market value of EUR 152.4 million transferred to its funds, including a property in Copenhagen. Agreements made by savings banks to provide capital have increased further. There is also an equity commitment for EUR 300 million for the establishment of an additional special real estate fund, which will invest in core properties throughout Europe.
| in EUR million | Planned tar get volume |
Committed equity |
Assets under management |
Number of funds |
|---|---|---|---|---|
| PATRIZIA WohnInvest KAG mbH | 2,226 | 1,011 | 8501 | 7 |
| PATRIZIA GewerbeInvest KAG mbH | 6,392 | 2,879 | 3,394 | 13 |
| Modular funds | 3,500 | 1,384 | 1,447 | 7 |
| Individual funds | 892 | 421 | 461 | 4 |
| Label funds | 2,000 | 1,074 | 1,486 | 2 |
| TOTAL PATRIZIA | 8,618 | 3,890 | 4,244 | 20 |
Excludes real estate developments secured under purchase contracts
As part of a commercial mandate from an occupational pension fund, PATRIZIA acquired the fi rst properties for EUR 5.9 million. The fund focusses on German "value-add" real estate. PATRIZIA is responsible for purchasing and asset management, but not for funds management, because the investor uses an external investment platform for the special fund.
| 3rd quarter 2013 | 3rd quarter 2012 | 9 months 2013 | 9 months 2012 | |
|---|---|---|---|---|
| 01.07. – 30.09.2013 EUR '000 |
01.07. – 30.09.2012 EUR '000 |
01.01. – 30.09.2013 EUR '000 |
01.01. – 30.09.2012 EUR '000 |
|
| Revenues from | ||||
| residential property resale1 | 11,487 | 25,275 | 41,862 | 67,031 |
| Revenues from block sales1 | 25,291 | 2,800 | 25,491 | 4,090 |
| Rental revenues | 7,422 | 10,561 | 24,009 | 32,972 |
| Revenues from co-investments | 9,043 | 7,918 | 26,724 | 23,923 |
| Revenues from third parties | 9,662 | 8,386 | 28,777 | 21,703 |
| Other2 | 2,737 | 4,293 | 8,540 | 12,888 |
| TOTAL | 65,642 | 59,233 | 155,403 | 162,607 |
1 Purchase price receipts from investment property are not included in revenues.
The item "Other" primarily includes rental ancillary costs.
In the fi rst nine months of 2013, consolidated revenues decreased slightly by 4.4% to EUR 155.4 million. One reason for the fall was that less real estate reported under inventories and more real estate reported as non-current assets was sold, but the latter are not included in revenues.
Revenues from Management Services (revenues from co-investments and revenues from third parties) amounted to EUR 55.5 million, representing 35.7% of total revenues (9 months of 2012: EUR 45.6 million, 28.1%). The higher service revenues in the fi rst three quarters of 2013 result from higher assets under management as a source of income for general service fees; however, the acquisition fee received for the GBW transaction was also higher than that for LBBW Immobilien GmbH in the previous year.
Sales revenues have only limited comparative signifi cance for PATRIZIA since – as already indicated – the selling prices of properties reported in non-current assets are not refl ected in sales revenues. In this case, the gross income is reported under the item "Loss from/gain on the disposal of investment property". After deducting carrying amounts of EUR 83.5 million, purchase price receipts between January and September of EUR 96.0 million resulted in a profi t of EUR 12.5 million (gross margin: 13.0%). The gross margin for the third quarter was 11.9%. In terms of reductions in carrying value, an amount of EUR 11.3 million (fi rst nine months of 2013), or EUR 2.3 million (third quarter of 2013) is to be classifi ed as realised value adjustments. A total of 517 residential units reported as investment property were sold, including 253 in the third quarter of 2013. This means that 42.4% of all residential units sold between January and September are not considered in sales revenues (32.5% for the third quarter of 2013).
| 3rd quarter 2013 | 3rd quarter 2012 | 9 months 2013 | 9 months 2012 | |
|---|---|---|---|---|
| 01.07. – 30.09.2013 EUR '000 |
01.07. – 30.09.2012 EUR '000 |
01.01. – 30.09.2013 EUR '000 |
01.01. – 30.09.2012 EUR '000 |
|
| Sales revenues from | ||||
| i nventories | 36,778 | 28,075 | 67,353 | 71,121 |
| Residential property resale | 11,487 | 25,275 | 41,862 | 67,031 |
| Block sales | 25,291 | 2,800 | 25,491 | 4,090 |
| Sales revenues from invest | ||||
| ment property1 | 37,271 | 57,372 | 96,017 | 88,442 |
| Residential property resale | 20,571 | 17,662 | 69,090 | 45,742 |
| Block sales | 16,700 | 39,710 | 26,927 | 42,700 |
| TOTAL | 74,049 | 85,447 | 163,370 | 159,563 |
Purchase price receipts from investment property are not included in revenues. Instead, the income statement reports the gross profi t.
Changes in inventories for the fi rst three quarters comprise the reductions in carrying value of the real estate reported under inventories (EUR –57.2 million) and capitalisation (EUR 21.1 million primarily caused by real estate developments) and amounted to EUR –36.1 million (fi rst nine months of 2012: EUR –38.9 million). The reductions in carrying value are set against purchase price receipts of EUR 67.4 million, corresponding to a gross margin of 15.1%. If the third quarter is viewed on its own, the gross margin was 7.9%.
At EUR 39.1 million, the cost of materials rose 3.3% on the previous year's fi gure (fi rst nine months of 2012: EUR 37.8 million), with the majority (EUR 15.8 million) relating to construction measures within the framework of PATRIZIA's own developments. A further amount of EUR 11.9 million was invested in renovation and maintenance, with the remaining EUR 11.4 million mainly relating to ancillary costs.
Staff costs rose by 32.0% to EUR 44.3 million (fi rst nine months of 2012: EUR 33.6 million). Firstly, the increase in staff numbers over the course of 2012 aff ected the entire nine months, and secondly additional members of staff have been appointed since the start of the year. Higher provisions for long-term variable compensation of the fi rst and second management tiers increased staff costs further. In addition to the higher share price compared with the previous year, these provisions also took the issue of bonus shares into account.
Other operating expenses totalling EUR 37.5 million (fi rst nine months of 2012: EUR 30.5 million, +23.1%) mainly comprise selling expenses of EUR 13.0 million as well as administrative expenses (EUR 10.1 million), operating expenses (EUR 8.1 million) and other expenses (EUR 6.3 million).
Earnings before interest and tax (EBIT) for the fi rst nine months fell by 60.0% to EUR 12.5 million (fi rst nine months of 2012: EUR 31.2 million). The fact that EBIT deteriorated compared with the same period in the previous year was, among other things, due to the income from asset management of co-investments being shown in the investment result, which is assigned to the fi nancial result. EBT is therefore the relevant fi nancial indicator to be considered for PATRIZIA.
In accordance with IFRS, market value changes arising from interest hedging transactions are reported in the Consolidated Income Statement. The market valuation is recognised in the fi nancial result as income or expense depending on changes in the interest rate level, causing the results to fl uctuate substantially. However, this has no infl uence on PATRIZIA's liquidity. Most of these interest hedging transactions, which guarantee us a fi xed average interest rate of 3.98% p.a., were concluded at the end of 2006/beginning of 2007 in connection with the fi nancing of major real estate portfolios; the majority of them will expire by 31 January 2014, or by 30 June 2014 at the latest. Due to the high volume of secured loans, which is now higher than the lines of credit used, and to further reductions in interest rates, the changes in the value of interest hedging transactions rose to EUR 14.4 million.
| 3rd quarter 2013 |
3rd quarter 2012 |
9 months 2013 |
9 months 2012 |
2012 | |
|---|---|---|---|---|---|
| 01.07. – 30.09.2013 EUR '000 |
01.07. – 30.09.2012 EUR '000 |
01.01. – 30.09.2013 EUR '000 |
01.01. – 30.09.2012 EUR '000 |
01.01. – 31.12.2012 EUR '000 |
|
| Changes in the value of derivatives |
4,666 | 2,017 | 14,434 | 4,874 | 11,028 |
During this period, the cash-related fi nancial result was EUR -23.4 million. Financing costs (interest rate plus margin) averaged 6.68% (fi rst nine months of 2012: 5.10%, overall year in 2012: 5.29%). The further rise in fi nancing costs was due to the higher interest rate hedging costs. Further information on the fi nancial result is available in Section 11 of the Notes to the Consolidated Interim Financial Statements.
After three quarters, the income from investments amounted to EUR 15.8 million. This item includes the annual asset management fee and the fi rst performance fee from the Südewo co-investment and also the fi rst pro-rata payment for asset management of GBW AG. Since the asset management fee is invoiced half-yearly in advance, no income was recorded here in the third quarter. WohnModul I produced a result from participations valued at equity of EUR 0.6 million.
After deducting the fi nancial result and adding the income from participations and also the result from participations valued at equity, earnings before tax (EBT) amounted to EUR 20.0 million (fi rst nine months of 2012: EUR 16.3 million), thus exceeding the result for the same period of the previous year by 22.5%. The third quarter accounted for EUR 2.2 million (third quarter of 2012: EUR 7.3 million, -69.8%) of this amount.
The reconciliation of EBT in accordance with IFRS to the operating result is eff ected via an adjustment to non-cash-related components of the results and by taking realised value adjustments to investment property into account. In the fi nancial result, the changes in market values of interest hedges are eliminated and amortisation on fund management contracts is not included. There were no unrealised value adjustments to investment property in either the fi rst nine months of 2013 or in the corresponding period of the previous year. This approach gives an operating result of EUR 18.7 million (fi rst nine months of 2012: EUR 26.1 million) and of EUR 0.5 million for the third quarter. After three quarters, 71.8% of the result was generated by the segment Management Services. This fi gure roughly matches our estimate for the whole of 2013, where we expect a share of at least two-thirds.
| 3rd quarter 2013 |
3rd quarter 2012 |
9 months 2013 |
9 months 2012 |
2012 | |
|---|---|---|---|---|---|
| 01.07. – 30.09.2013 EUR '000 |
01.07. – 30.09.2012 EUR '000 |
01.01. – 30.09.2013 EUR '000 |
01.01. – 30.09.2012 EUR '000 |
01.01. – 31.12.2012 EUR '000 |
|
| EBIT | 4,674 | 13,083 | 12,509 | 31,240 | 44,739 |
| Amortisation of intangible assets that resulted from the acquisition of PATRIZIA GewerbeInvest KAG mbH and Tamar Capital Group Ltd |
649 | 492 | 1,791 | 1,476 | 1,968 |
| Unrealised change in the | |||||
| value of investment property | 0 | 0 | 0 | 0 | -18 |
| Realised change in the value | |||||
| of investment property | 2,340 | 6,775 | 11,318 | 13,141 | 23,568 |
| EBIT adjusted | 7,663 | 20,350 | 25,618 | 45,857 | 70,257 |
| Income from participations | 0 | 0 | 15,833 | 5,438 | 6,557 |
| Result from participations | |||||
| valued at equity | 646 | 14 | 646 | 14 | 455 |
| Financial result | -3,107 | -5,810 | -8,988 | -20,378 | -23,130 |
| Change in the value of | |||||
| derivatives | -4,666 | -2,017 | -14,434 | -4,874 | -11,028 |
| Release of other result from | |||||
| cash fl ow hedging | 0 | 0 | 0 | 0 | 781 |
| Losses from currency | |||||
| translation | -15 | 0 | -15 | 0 | 0 |
| OPERATING RESULT | 521 | 12,537 | 18,660 | 26,057 | 43,892 |
In the fi rst nine months, the profi t for the period after deduction of taxes rose by EUR 8.0 mil lion or 67.7% to EUR 19.7 million (fi rst nine months of 2012: EUR 11.7 million). The low tax quota resulted from a tax refund in the third quarter. We expect the tax quota to remain between 10% and 20% in the medium term. The writeback of deferred taxes as a result of the disposal of investment property is a contributory factor here.
Earnings per share for the fi rst three quarters of 2013 were EUR 0.31 (fi rst 9 months of 2012: EUR 0.19), of which EUR 0.03 is attributable to the third quarter (third quarter of 2012: EUR 0.10).
| 3rd quarter 2013 |
3rd quarter 2012 |
9 months 2013 |
9 months 2012 |
2012 | |
|---|---|---|---|---|---|
| 01.07. – 30.09.2013 EUR '000 |
01.07. – 30.09.2012 EUR '000 |
01.01. – 30.09.2013 EUR '000 |
01.01. – 30.09.2012 EUR '000 |
01.01. – 31.12.2012 EUR '000 |
|
| Revenues | 65,642 | 59,233 | 155,403 | 162,607 | 229,238 |
| Total operating performance | 47,890 | 47,499 | 137,681 | 136,221 | 196,111 |
| EBITDA | 6,223 | 14,188 | 16,753 | 34,332 | 49,280 |
| EBIT | 4,674 | 13,083 | 12,509 | 31,240 | 44,739 |
| EBT | 2,198 | 7,287 | 19,985 | 16,314 | 28,621 |
| Operating result1 | 521 | 12,537 | 18,660 | 26,057 | 43,892 |
| Profi t for the period | 1,939 | 6,426 | 19,685 | 11,736 | 25,455 |
Adjusted for amortisation on other intangible assets (fund management contracts), unrealised value adjustments to investment property (aff ects only the entire year 2012) and non-cash eff ects from interest hedging transactions. Realised change in the value of investment property has been added.
| 30.09.2013 EUR '000 |
31.12.2012 EUR '000 |
Change in % |
|
|---|---|---|---|
| Total assets | 898,484 | 951,553 | –5.6 |
| Equity (including non-controlling partners) |
356,408 | 336,387 | 6.0 |
| Equity ratio | 39.7% | 35.4% | 4.3 PP |
| Bank loans | 363,742 | 521,054 | –30.2 |
| – Cash and cash equivalents | 79,539 | 38,135 | >100 |
| + Bonded loans | 77,000 | 0 | >100 |
| = Net fi nancial debt | 361,203 | 482,919 | –25.2 |
| Real estate assets1 | 604,845 | 720,024 | –16.0 |
| Loan to value 2 | 60.1% | 72.4% | –12.3 PP |
| Net gearing 3 | 101.8% | 144.2% | –42.4 PP |
| Operating return on equity | 7.2%4 | 13.6% | –6.4 PP5 |
Real estate assets comprise investment property valued at fair value and real estate held in inventories valued at amortised cost.
Proportion of bank loans to real estate assets. Only investment property is calculated at fair value. Inventories are stated at amortised cost. 3
Ratio of net fi nancial debt to equity adjusted for minority interests
Based on the operating result and the average equity capital for the fi rst nine months, projected for the full year
5 In relation to the comparable fi gure for the fi rst nine months of 2012 of 11.0%, there was a decline of 3.8 PP.
PP = percentage points
As a result of sales concluded and loans repaid, total assets as at 30 September 2013 fell to EUR 898.5 million (31 December 2012: EUR 951.6 million).
Inventories relate to the real estate that is off ered for sale as part of ordinary business operations. Since the 2012 balance sheet date, inventories have fallen from EUR 345.9 million to EUR 309.8 million. Investment property fell by 21.1% to EUR 295.1 million as a result of the sales eff ected in the period. The carrying value of real estate assets at 30 September 2013 was EUR 604.8 million (31 December 2012: EUR 720.0 million) and results from adding inventories and investment property.
Since the end of 2012, bank loans have fallen by 30.2% to EUR 363.7 million and are now all reported as current liabilities (31 December 2012: EUR 521.1 million). A schedule of maturities for our loans is listed in Section 9 of the Notes to the Consolidated Interim Financial Statements of this report. The two bonded loans taken out in the fi rst half of the year for a total of EUR 77.0 million with a residual term up to 30 June 2016/30 June 2018 help provide PATRIZIA with fl exible liquidity because cash and cash equivalents have more than doubled compared with the end of 2012 and now stand at EUR 79.5 million (31 December 2012: EUR 38.1 million). The bonded loans are subject to interest at 4.5% and 4.65% and may be repaid by us prematurely. They are reported under the balance sheet item non-current liabilities. In the third quarter of 2013, the second tranche of EUR 3.2 million was invested for the 5.1% holding in GBW AG. The Group's equity ratio improved further to 39.7% (31 December 2012: 35.4%). Our target is to increase this to 45% by the end of the year.
| Assets under management in EUR million |
Tied invest ment capital in EUR million |
Share in investment in % |
|
|---|---|---|---|
| Own investments | 5,678 | 309.4 | 100 |
| Investment property and inventories1 |
605 | 209.8 | 100 |
| PATRIZIA operational companies |
5,073 | 46.8 | 100 |
| Bank balances and cash | – | 52.8 | 100 |
| Co-investments | 5,009 | 124.0 | – |
| Residential Germany | 4,308 | 86.0 | – |
| GBW AG | 2,494 | 53.8 | 5.1 |
| Süddeutsche Wohnen GmbH | 1,398 | 15.0 | 2.5 |
| WohnModul I SICAV-FIS | 371 | 15.8 | 9.09 |
| Other | 45 | 1.4 | 10 |
| Commercial Germany | 382 | 19.8 | – |
| PATRoffi ce | 324 | 7.8 | 6.25 |
| sono west | 58 | 7.0 | 30 |
| Deikon 2 | 0 | 5.0 | 5.1 |
| Commercial International | 319 | 18.2 | – |
| Plymouth Sound Holdings | |||
| LP (UK) | 32 | 3.4 | 10 |
| Winnersh Holdings LP (UK)3 | 287 | 14.8 | 5 |
| Bonded loan | – | –77.0 | 100 |
| TOTAL | 10,687 | 356.4 | – |
Including real estate developments
2 Closing expected in November 2013, tied investment capital corresponds to the fi rst down payment for the fi nal participation in an expected amount of EUR 5.3 million.
Tied investment capital will decrease to EUR 3.8 million after defi nitive fi nancing
At PATRIZIA, some real estate is valued at the market value (fair value, applies to investment property), and some at amortised cost (inventories). In the fi rst three quarters of 2013, sales resulted in gross margins of 13.0% and 15.1% above the carrying value, thus testifying to the value retention of our real estate. The Management Services division, which contributed 71.8% of the operating result in the fi rst nine months and which is to account for at least two thirds of the result over the year as a whole, is not included when calculating net asset value. Since the NAV represents only part of PATRIZIA, we do not consider it appropriate to value the Group on the basis of this indicator.
| 30.09.2013 EUR '000 |
31.12.2012 EUR '000 |
|
|---|---|---|
| Investment property1 | 295,068 | 374,104 |
| Participations in associated companies | 16,456 | 15,810 |
| Participations | 79,343 | 18,407 |
| Inventories2 | 309,777 | 345,920 |
| Current receivables and other current assets | 55,879 | 92,0133, 4 |
| Bank balances and cash | 79,539 | 50,3303 |
| Less non-current liabilities4 | -77,000 | 0 |
| Less current liabilities | -53,133 | -25,8763, 4 |
| Less bank loans | -363,742 | -521,054 |
| NAV | 342,187 | 349,654 |
| No. of shares | 63,077,300 | 57,343,000 |
| NAV/SHARE (EUR) | 5.42 | 6.10 |
Fair market valuation; (gross) sales margin of the fi rst three quarters of 2013: 13.0%
2 Valuation at amortised cost; (gross) sales margin of the fi rst three quarters of 2013: 15.1%
Figures excluding PATRIZIA GewerbeInvest KAG mbH, cash and cash equivalents increased by outfl ow of equity
Adjusted for non-real-estate-specifi c items
The segment Investments is still responsible for 28.2% of the result for the fi rst three quarters of 2013.
In the course of its business activities, PATRIZIA Immobilien AG is confronted with both opportunities and risks. The necessary measures have been taken and processes put in place in the group to identify negative trends and risks in good time and to counteract them. Since the annual accounts for the fi scal year 2012 there have been no signifi cant changes related to the opportunity and risk profi le to indicate any new risks or opportunities for the group. The assessment of probabilities and potential extent of damage has also not led to any signifi cant changes in the interim risk audit.
The statements in the risk report of the Annual Report 2012 still apply. Please therefore refer to the risk report on pages 74 ff . of the Annual Report 2012 of PATRIZIA Immobilien AG for a detailed description of the opportunities and risks for the group. No other risks are currently known to the Managing Board of PATRIZIA Immobilien AG.
In September 2013 PATRIZIA signed a declaration of intent concerning the acquisition of an offi ce real estate portfolio ("Hessen portfolio") for a German-speaking consortium of investors; the purchase agreement was signed in October. This represents the largest transaction involving commercial real estate in Germany so far this year. The portfolio, which has been acquired for a special real estate fund, comprises 36 offi ce properties in the federal state of Hessen with leased space of approximately 450,000 sqm. The lease agreement concluded with the federal state of Hessen for all properties still has well over 20 years to run and after the end of the original term, is in each case automatically extended for a further three years. The offi ce properties are in par ticular located in Wiesbaden, Giessen, Kassel and Marburg. The buildings are predominantly used by ministries, courts, the police and the fi scal authorities. The portfolio has a maximum external fi nancing rate of 50%. The transaction volume is EUR 0.8 billion. The seller is a subsidiary of CA Immobilien Anlagen AG. The transaction is scheduled to be completed in the fourth quarter of 2013.
The third quarter of 2013 was weak in terms of results and at EUR 0.5 million, its contribution to the operating result did not bring us much closer to our annual forecast. At EUR 18.7 million, after nine months, we have achieved just under 40% of our target operating result for 2013. However, we still believe our forecast is achievable, or at least the lower threshold of EUR 47 million. A major contribution will be made by the acquisition fees for the "Deikon" and "Hessen" portfolios, the deals for which are expected to be closed in November and December. We are conducting promising negotiations on a comparable project aimed at completing the transaction by the end of the year; this would enable us to achieve our forecast with suffi cient certainty.
We are also pursuing our other targets on an unchanged basis – namely the reduction in bank liabilities to EUR 270 million (or to EUR 350 million if the bonded loans are included) and an equity ratio of 45% by the end of the year. It is also highly likely that we will have reached our target fi gure of 1,800 residential unit sales by the end of the year.
This report contains specifi c 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 diff er from the results currently expected.
| EUR'000 | 30.09.2013 | 31.12.2012 |
|---|---|---|
| A. Non-current assets | ||
| Goodwill | 610 | 610 |
| Other intangible assets | 42,685 | 43,259 |
| Software | 8,654 | 7,553 |
| Investment property | 295,068 | 374,104 |
| Equipment | 4,787 | 3,479 |
| Participations in associated companies | 16,456 | 15,810 |
| Participations | 79,343 | 18,407 |
| Long-term tax assets | 158 | 201 |
| Total non-current assets | 447,761 | 463,423 |
| B. Current assets | ||
| Inventories | 309,777 | 345,920 |
| Securities | 96 | 60 |
| Short-term tax assets | 5,432 | 5,380 |
| Current receivables and | ||
| other current assets | 55,879 | 98,635 |
| Bank balances and cash | 79,539 | 38,135 |
| Total current assets | 450,723 | 488,130 |
| TOTAL ASSETS | 898,484 | 951,553 |
| EUR '000 | 30.09.2013 | 31.12.2012 |
|---|---|---|
| A. Equity | ||
| Share capital | 63,077 | 57,343 |
| Capital reserve | 204,897 | 210,644 |
| Retained earnings | ||
| Legal reserves | 505 | 505 |
| Non-controlling shareholders | 1,433 | 1,556 |
| Valuation results from cash fl ow hedges | –129 | –469 |
| Currency translation diff erence | 8 | 0 |
| Consolidated net profi t | 86,617 | 66,808 |
| Total equity | 356,408 | 336,387 |
| B. Liabilities | ||
| NON-CURRENT LIABILITIES | ||
| Deferred tax liabilities | 25,250 | 23,242 |
| Long-term fi nancial derivatives | 0 | 16,363 |
| Retirement benefi t obligations | 388 | 388 |
| Long-term bank loans | 0 | 302,004 |
| Non-current liabilities | 79,770 | 3,417 |
| Total non-current liabilities | 105,408 | 345,414 |
| CURRENT LIABILITIES | ||
| Short-term bank loans | 363,742 | 219,050 |
| Short-term fi nancial derivatives | 7,595 | 6,069 |
| Other provisions | 1,215 | 1,479 |
| Current liabilities | 53,133 | 28,750 |
| Tax liabilities | 10,983 | 14,404 |
| Total current liabilities | 436,668 | 269,752 |
| TOTAL EQUITY AND LIABILITIES | 898,484 | 951,553 |
| EUR '000 | 3rd quarter 2013 | 3rd quarter 2012 | 9 months 2013 | 9 months 2012 |
|---|---|---|---|---|
| 01.07. – 30.09.2013 |
01.07. – 30.09.2012 |
01.01. – 30.09.2013 |
01.01. – 30.09.2012 |
|
| Revenues | 65,642 | 59,233 | 155,403 | 162,607 |
| Income from the sale of investment property |
4,418 | 738 | 12,478 | 3,871 |
| Changes in inventories | –24,309 | –14,844 | –36,143 | –38,910 |
| Other operating income | 2,139 | 2,372 | 5,943 | 8,653 |
| Total operating performance | 47,890 | 47,499 | 137,681 | 136,221 |
| Cost of materials | –15,257 | –11,885 | –39,058 | –37,816 |
| Staff costs | –14,607 | –12,007 | –44,349 | –33,593 |
| Other operating expenses | –11,803 | –9,419 | –37,521 | –30,480 |
| EBITDA | 6,223 | 14,188 | 16,753 | 34,332 |
| Amortisation of intangible assets and depreciation on property, plant and equipment |
–1,549 | –1,105 | –4,244 | –3,092 |
| Earnings before interest and income taxes (EBIT) |
4,674 | 13,083 | 12,509 | 31,240 |
| Income from participations | 0 | 0 | 15,833 | 5,438 |
| Result from participations valued | ||||
| at equity | 646 | 14 | 646 | 14 |
| Finance income | 4,975 | 2,182 | 15,070 | 5,384 |
| Finance cost | –8,082 | –7,992 | –24,058 | –25,762 |
| Losses from currency translation | –15 | 0 | –15 | 0 |
| Earnings before income taxes (EBT) | 2,198 | 7,287 | 19,985 | 16,314 |
| Income tax | –259 | –861 | –300 | –4,578 |
| Net profi t | 1,939 | 6,426 | 19,685 | 11,736 |
| Profi t carried forward | 84,554 | 46,533 | 66,808 | 41,223 |
| CONSOLIDATED NET PROFIT | 86,493 | 52,959 | 86,493 | 52,959 |
| Earnings per share (undiluted) in EUR | 0.03 | 0.10 | 0.31 | 0.19 |
| The net profi t for the period is allocated to: |
||||
| Shareholders of the parent company |
1,994 | 6,458 | 19,809 | 11,822 |
| Non-controlling shareholders | –55 | –32 | –124 | –86 |
| 1,939 | 6,426 | 19,685 | 11,736 |
FOR THE PERIOD FROM 1 JANUARY 2013 TO 30 SEPTEMBER 2013
| EUR '000 | 3rd quarter 2013 | 3rd quarter 2012 | 9 months 2013 | 9 months 2012 |
|---|---|---|---|---|
| 01.07. – 30.09.2013 |
01.07. – 30.09.2012 |
01.01. – 30.09.2013 |
01.01. – 30.09.2012 |
|
| Consolidated net profi t | 1,939 | 6,426 | 19,685 | 11,736 |
| Other result | ||||
| Diff erences arising from translation of foreign operations |
8 | 0 | 8 | 0 |
| Cash fl ow hedges | ||||
| Amounts recorded during the reporting period |
128 | 28 | 340 | 264 |
| Reclassifi cation of amounts that were recorded |
0 | 0 | 0 | 0 |
| Total result for the reporting period | 2,075 | 6,454 | 20,033 | 12,000 |
| The total result is allocated to: | ||||
| Shareholders of the parent company |
2,130 | 6,486 | 20,157 | 12,086 |
| Non-controlling shareholders | –55 | –32 | –124 | –86 |
| 2,075 | 6,454 | 20,033 | 12,000 |
| Consolidated Cash Flow Statement | Consolidated Statement of Changes in Equity |
|---|---|
| ---------------------------------- | --------------------------------------------- |
| EUR '000 | 01.01. – | 01.01. – |
|---|---|---|
| 30.09.2013 | 30.09.2012 | |
| Consolidated net profi t | 19,685 | 11,736 |
| Actual income taxes recognised through profi t or loss | 300 | 4,578 |
| Financing costs recognised through profi t or loss | 24,058 | 25,762 |
| Income from fi nancial investments recognised through profi t or loss | –1,251 | –394 |
| Amortisation of intangible assets and depreciation on property, plant and equipment |
4,244 | 3,092 |
| Gain on disposal of investment properties | –12,478 | –3,871 |
| Change in deferred taxes | 2,072 | –6,901 |
| Ineff ectiveness of cash fl ow hedges | –14,561 | 200 |
| Changes in inventories, receivables and other assets that are not attributable to investing activities |
78,853 | 61,677 |
| Changes in liabilities that are not attributable to fi nancing activities | 98,132 | 78 |
| Interest paid | –23,156 | –24,221 |
| Interest received | 382 | 119 |
| Income tax payments | –2,059 | –5,677 |
| Cash infl ow from operating activities | 174,221 | 66,178 |
| Capital investments in intangible assets and property, plant and equipment | –6,070 | –2,997 |
| Cash receipts from disposal of investment property | 96,017 | 88,442 |
| Payments for development or acquisition of investment property | –4,503 | –1,316 |
| Payments for the acquisition of shareholdings | –60,936 | –22,526 |
| Cash infl ow from investing activities | 24,508 | 61,603 |
| Borrowing of loans | 88,833 | 5,940 |
| Repayment of loans | –246,145 | –96,683 |
| Payment for the issuance of bonus shares | –13 | –5 |
| Cash outfl ow from fi nancing activities | –157,325 | –90,748 |
| Changes in cash | 41,404 | 37,033 |
| Cash 1 January | 38,135 | 31,828 |
| Cash 30 September | 79,539 | 68,861 |
| EUR '000 | Share capital |
Capital reserve |
Valuation result from cash fl ow hedges |
Retained earnings (legal reserve) |
Currency transla tion |
Consoli dated net profi t |
Thereof at tributable to the share holders of the parent company |
Thereof at tributable to non controlling share holders |
Total |
|---|---|---|---|---|---|---|---|---|---|
| Balance 1 January 2012 | 52,130 215,862 | –1,331 | 505 | 0 | 41,346 308,512 | 1,563 310,075 | |||
| Net amount recognised directly in equity, where applicable less income |
|||||||||
| taxes | 264 | 264 | 264 | ||||||
| Issuance of bonus shares | 5,213 | –5,213 | –5,213 | –5,213 | |||||
| Expenses incurred in issuing bonus shares |
–5 | –5 | –5 | ||||||
| Net profi t/loss for the period |
11,822 | 11,822 | –86 | 11,736 | |||||
| Full overall result for the fi rst 9 months |
264 | 0 | 12,086 | –86 | 12,000 | ||||
| Balance 30 September 2012 |
57,343 210,644 | –1,067 | 505 | 0 | 53,168 320,593 | 1,477 322,070 | |||
| Balance 1 January 2013 | 57,343 210,644 | –469 | 505 | 0 | 66,808 334,831 | 1,556 336,387 | |||
| Net amount recognised directly in equity, where applicable less income taxes |
340 | 8 | 348 | 348 | |||||
| Issuance of bonus shares | 5,734 | –5,734 | –5,734 | –5,734 | |||||
| Expenses incurred in issuing bonus shares |
–13 | –13 | –13 | ||||||
| Non-controlling interests arising from the inclusion of new companies |
1 | 1 | |||||||
| Net profi t/loss | |||||||||
| for the period | 19,809 | 19,809 | –124 | 19,685 | |||||
| Full overall result for the fi rst 9 months |
340 | 20,157 | –124 | 20,033 | |||||
| BALANCE 30 SEPTEMBER 2013 |
63,077 204,897 | –129 | 505 | 8 | 86,617 354,975 | 1,433 356,408 |
TO 30 SEPTEMBER 2013 (FIRST NINE MONTHS OF 2013)
PATRIZIA Immobilien AG is a listed German stock corporation. The Company's headquarters are located at Fuggerstrasse 26, 86150 Augsburg. PATRIZIA Immobilien AG has been active as an investor and service provider on the real estate market for almost 30 years, and now in over ten countries. PATRIZIA covers the spectrum of purchasing, management, appreciation and the sale of residential and commercial real estate. As a recognised business partner of large institutional investors, the Company operates nationally and internationally, covering the entire value chain in the real estate industry. Currently the Company manages real estate assets with a value of EUR 10.7 billion mainly as a co-investor and portfolio manager for insurance companies, pension fund institutions, sovereign wealth funds and savings banks.
These consolidated interim fi nancial statements of PATRIZIA Immobilien AG for the fi rst three quarters of 2013 (1 January to 30 September 2013) 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 the IFRS and in compliance with the provisions of German commercial law additionally applicable as per Article 315a (1) of the German Commercial Code [HGB]. All compulsory offi cial 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 Offi cial Journal of the EU) have been applied.
From the perspective of the Company's management, the present unaudited consolidated interim fi nancial statements for the period ended 30 September 2013, 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. The earnings generated in the fi rst nine months of 2013 are not necessarily an indication of future earnings or of the expected total earnings for fi scal year 2013.
When preparing the consolidated fi nancial 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 aff ect the application of accounting standards in the Group and the reporting of assets and liabilities as well as income and expenses. Actual amounts may diff er from these estimates.
These consolidated interim fi nancial statements have been prepared in accordance with the same accounting policies as the last consolidated fi nancial statements for fi scal year 2012. A detailed description of the principles applied in preparing the consolidated fi nancial statements and the accounting methods used can be found in the notes to the IFRS consolidated fi nancial statements for the year ended 31 December 2012, which are contained in the Company's 2012 Annual Report.
The unaudited interim fi nancial statements were prepared in euro. The amounts, including the previous year's fi gures, are stated in EUR thousand (TEUR).
All of the Company's subsidiaries are included in the consolidated fi nancial statements of PATRIZIA Immobilien AG. The Group includes all companies controlled by PATRIZIA Immobilien AG. In addition to the parent company, the scope of consolidation comprises 64 subsidiaries. They are included in the consolidated fi nancial statements in line with the rules of full consolidation. Moreover, two participations are accounted for at equity in the consolidated fi nancial statements. In addition, 28.3% of the limited liability capital is held in one real estate development company (in the form of a GmbH & Co. KG), while 30% is held in the associated general partner. A signifi cant infl uence does not apply here because provisions in the partnership agreement mean that management cannot be exercised, that a signifi cant infl uence cannot be exerted on the management and that there is no entitlement to appoint members of the governing organs. The shares in the real estate development company are accounted for at purchase cost.
Associated companies are companies in which PATRIZIA has a holding and signifi cant infl uence but no supervision or joint management. The shares are accordingly valued at their fair value and changes to the fair value are reported in the net result.
As at 22 April 2013, PATRIZIA Immobilien AG purchased 100% of Tamar Capital Group Ltd's shares with voting rights.
Tamar Capital Group Ltd is a London-based real estate investment and asset management company. In addition to its home market, Tamar Capital Group Ltd is also currently active on the German, French, Scandinavian and Belgian markets and places special emphasis on light industrial, retail and offi ce properties. Tamar European Industrial Fund belongs to the group and is listed on the London Stock Exchange.
In acquiring Tamar Capital Group Ltd, PATRIZIA Immobilien AG is pursuing its strategic goal of expanding its business activities in other European countries and of establishing itself as the leading, fully integrated real-estate investment company in Europe. Acquiring Tamar Capital Group Ltd thus off ers PATRIZIA Immobilien AG the opportunity to strengthen its presence in various core European markets, especially in the United Kingdom and France, thereby expanding its service off ering, investor commitment and consequently the volume of managed investments in the area of commercial real estate throughout Europe. Moreover, besides the strategic aspects of market positioning, the integration of the Tamar Group into the PATRIZIA group of companies is also expected to create considerable synergy eff ects in the areas of real-estate expertise, knowledge of the European market and service.
At the time of acquisition, the fair values of the identifi ed assets and liabilities of Tamar Capital Group Ltd were as follows:
| Fair value at the time of acquisition EUR '000 |
|
|---|---|
| Assets | |
| Licences | 121 |
| Client contracts (asset management) | 1,105 |
| Receivables from joint venture under mezzanine loan | 331 |
| Property, plant and equipment | 53 |
| Trade receivables | 522 |
| Cash and cash equivalents | 626 |
| Other assets | 524 |
| 3,282 | |
| Liabilities | |
| Trade payables | 65 |
| Other liabilities | 1,102 |
| Provisions | 219 |
| Deferred tax liabilities | 368 |
| 1,754 | |
| Total of identifi able net assets at fair value | 1,528 |
| Diff erence from the company acquisition | –933 |
| TOTAL COUNTERPERFORMANCE | 595 |
This represents a provisional purchase price allocation and may be subject to adjustments within the measurement period of twelve months.
The new fair values to be defi ned will be determined autonomously pursuant to IFRS 3, i. e. without any links to existing fair values, in accordance with local accounting rules and regulations.
Hidden reserves were identifi ed in a receivable from a joint venture under a mezzanine loan and in the acquired asset management contracts and licenses. No other tangible or intangible assets that should be shown separately in expectation of a future economic benefi t were identifi ed.
The fair value and gross amount of trade receivables is TEUR 522. None of the trade receivables were impaired at the time of acquisition and it is expected that it will be possible to collect all the contractual amounts.
The counterperformance (excluding transaction costs) for the assets acquired and liabilities assumed by PATRIZIA Immobilien AG is comprised as follows:
| EUR '000 | |
|---|---|
| Cash payment | 264 |
| Liability from conditional counterperformance | 331 |
| TOTAL COUNTERPERFORMANCE | 595 |
A conditional counterperformance was agreed as part of the purchase agreement with the former owners of Tamar Capital Group Ltd. Under this agreement, PATRIZIA Immobilien AG undertakes to make additional payments to the former owners if a joint venture (including its subsidiaries) whose shares that were held by Tamar Capital Group Ltd are being taken over by PATRIZIA Immobilien AG is wound up or liquidated. The winding up/liquidation is expected approximately 24 months after the date of acquisition. In such case, payments will be made to the former owners in the amount of the pro-rata proceeds from property sales after deduction of liabilities and taxes. At the time of acquisition, the fair value of the conditional counterperformance was estimated at TEUR 331.
The transaction costs of TEUR 326 were posted as an expense and reported under other operating expenses. We also expect additional costs will still be incurred as processing of the transaction continues.
With the acquisition of the Tamar Capital Group Limited, London, the following companies were added to the scope of consolidation of PATRIZIA Immobilien AG:
PATRIZIA Luxembourg S.à r.l., part of the scope of consolidation of PATRIZIA Immobilien AG, founded PATRIZIA Investment Management COOP S.A., Luxembourg, on 12 March 2013. The company's share capital is EUR 100. The purpose of the company is the purchase and holding of all forms of participations and of all types of certifi cates, holding these as investments and trading in them in any possible manner.
PATRIZIA Luxembourg S.à r.l., part of the scope of consolidation of PATRIZIA Immobilien AG, founded PATRIZIA Investment Management SCS, Luxembourg, on 12 March 2013. The company's share capital is GBP 638.95. The purpose of the company is investment in unlisted companies and all types of certifi cates as well as the management, monitoring and development of such investments with the principal purpose of indirect investment in real estate and its management.
PATRIZIA Immobilien AG founded Pearl AcquiCo Zwei GmbH and Co. KG, Frankfurt, on 14 March 2013. The company's limited liability capital was initially TEUR 1. The fi xed capital was increased to EUR 1 million on 22 May 2013. The purpose of the company is the founding, purchase of and direct and/or indirect participation in companies whose sole purpose is the construction and management of real estate.
PATRIZIA Immobilien AG founded PATRIZIA Real Estate Investment Management S.à r.l., Munich, on 2 April 2013. The company's share capital is TEUR 125. The purpose of the company is the founding and management of one or more Luxembourg-based specialist investment funds.
PATRIZIA Luxembourg S.à r.l., part of the scope of consolidation of PATRIZIA Immobilien AG, founded SENECA TopCo S.à r.l., Luxembourg, on 10 July 2013. The company's share capital is TEUR 20. The purpose of the company is the purchase and holding of shares in one or several real estate companies, the granting of fi nance to property companies as well as the purchase and development of real estate.
On 17 September 2013 PATRIZIA Immobilien AG established PATRIZIA Ireland Ltd, Dublin. The company's share capital is GBP 8,360.50. The purpose of the company is the provision of real estate-related services in Ireland.
Qualifying real estate as an investment is based on a corresponding management decision to use the real estate in question to generate rental income and thus liquidity, while realising higher rent potential over a long period and, accordingly, an increase in value. The share of owneroccupier use does not exceed 10% of the rental space. Investment property is measured at fair value, with changes in value recognised through profi t or loss.
Investment property is measured at market values. In principle, investment property is measured on the basis of external appraisals carried out by independent experts using current market prices or using customary valuation methods and consideration of the current and long-term rental situation. The residential property resales process was launched for individual investment properties. Valuation of these properties is based on current comparative values.
The market value is equivalent to the fair value. According to IAS 40, this is defi ned as the value reasonably obtainable on the market based on a hypothetical buyer/purchaser situation. Investment property is reported at this fi ctitious market value without any deduction of transaction costs.
In contrast to the previous year, when it was valued by independent experts, the real estate that is now earmarked for residential property resale was valued by PATRIZIA using detailed project accounting. This project accounting is based on comparative values ascertained in the direct surroundings of the properties. Both off er prices and also selling prices were used for this, but only of comparable properties.
All investment property held by the Group is leased. The resultant rental income and the expenses directly associated with it are recognised in the consolidated income statement.
The item mainly includes the 9.09% (31 December 2012: 9.09%) share in PATRIZIA WohnModul I SICAV-FIS and the 51% share in Kenmore French Offi ce Investments S.à r.l. resulting from the acquisition of the Tamar Capital Group Limited.
The item "Participations" mainly includes the 6.25% (31 December 2012: 6.25%) share in PATRoffi ce Real Estate GmbH & Co. KG, the 12.5% (31 December 2012: 12.5%) share in Carl A-Immo GmbH & Co. KG (formerly Blitz 12-544 GmbH & Co. KG), the 28.3% (31 December 2012: 28.3%) participation in Projekt Feuerbachstrasse GmbH & Co. KG, the 10% (31 December 2012: 10%) share in PATRIZIA Projekt 150 GmbH, the 30% (31 December 2012: 30%) participation in Projekt Feuerbachstrasse Verwaltung GmbH, the 3.61% share in Carl HR GmbH & Co. KG (31 December 2012: 0%; formely Blitz 12-546 GmbH & Co. KG), the 10% share in Plymouth Sound Holdings LP (31 December 2012: 0%), the 4.9% share in Winnersh Holdings LP (31 December 2012: 0%) as well as the 0.01% share in Pearl AcquiCo Eins GmbH & Co. KG (31 December 2012: 0%).
The Inventories item contains real estate that is intended for sale in the context of ordinary activities or that is intended for such sale in the context of the construction or development process; in particular, it includes real estate that has been acquired solely for the purpose of resale in the near future or for development and resale. Development also covers straightforward modernisation and renovation activities. Assessment and qualifi cation as an inventory is undertaken within the context of the purchasing decision and implemented in the balance sheet as at the date of addition.
PATRIZIA has defi ned the operating business cycle as three years, because based on experience the majority of the units to be sold are sold and recognised during this time period. However, inventories are still intended for direct sale even if they are not recognised within three years.
Inventories are carried at cost. Acquisition costs comprise the directly attributable purchase and commitment costs; production costs comprise the costs directly attributable to the real estate development process.
Following the issue of bonus shares, the share capital of PATRIZIA Immobilien AG at the reporting date totalled EUR 63,077,300 (31 December 2012: EUR 57,343,000) and is divided into 63,077,300 no-par value shares (shares with no nominal value). For the development of equity, please see the consolidated statement of changes in equity. As of 30 September 2013, equity improved to EUR 356.4 million (31 December 2012: EUR 336.4 million).
Bank loans are measured at amortised cost. They have variable interest rates. In this respect, the Group is exposed to an interest rate risk in terms of the cash fl ows. To limit the risk, the Group has concluded interest hedging transactions for the majority of the loans.
All loans are in euro. Where real estate is sold, fi nancial liabilities are in principle redeemed through repayment of a specifi c share of the sale proceeds.
In the table below, bank loans with a residual term of up to one year include loans whose terms end within the 12 months following the reporting date and also revolving lines of credit used. Irrespective of the terms presented in the table below, loans which serve to fi nance inventories are in principle reported as current loans in the balance sheet.
The residual terms of the bank loans are as follows:
| EUR '000 | 30.09.2013 | 30.06.2013 | 31.03.2013 | 31.12.2012 |
|---|---|---|---|---|
| Up to 1 year | 318,955 | 372,603 | 63,199 | 52,683 |
| More than 1 to 2 years | 10,110 | 24,216 | 374,146 | 430,281 |
| More than 2 to 5 years | 34,677 | 38,699 | 38,572 | 38,090 |
| More than 5 years | 0 | 0 | 40,000 | 0 |
| TOTAL | 363,742 | 435,518 | 515,917 | 521,054 |
| Year | Amount of loans due as at | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 30.09.2013 | 30.06.2013 | 31.03.2013 | 31.12.2012 | ||||||||
| EUR '000 | in % | EUR '000 | in % | EUR '000 | in % | EUR '000 | in % | ||||
| 2013 | 21,817 | 6.0 | 26,136 | 6.0 | 63,199 | 12.2 | 52,683 | 10.1 | |||
| 2014 | 305,007 | 83.9 | 370,683 | 85.1 | 374,146 | 72.5 | 430,281 | 82.6 | |||
| 2015 | 36,918 | 10.1 | 38,699 | 8.9 | 38,572 | 7.5 | 38,090 | 7.3 | |||
| 2016 | 0 | 0 | 0 | 0 | 40,000 | 7.8 | 0 | 0 | |||
| TOTAL | 363,742 | 100 | 435,518 | 100 | 515,917 | 100 | 521,054 | 100 |
| Year | Quarter | Amount of loans due as at 30.09.2013 | |||
|---|---|---|---|---|---|
| EUR '000 | in % | ||||
| 2013 | Q4 | 21,817 | 6.0 | ||
| 2014 | Q2 | 297,138 | 81.7 | ||
| Q4 | 7,869 | 2.2 | |||
| 2015 | Q3 | 2,241 | 0.6 | ||
| Q4 | 34,677 | 9.5 | |||
| TOTAL | 363,742 | 100 |
Revenues comprise purchase price receipts from the sale of real estate held in inventories, on-going rental revenues, revenues from services and other revenues. Please refer to the statements on segment reporting.
| EUR '000 | 3rd quarter 2013 |
3rd quarter 2012 |
9 months 2013 |
9 months 2012 |
2012 |
|---|---|---|---|---|---|
| 01.07. – 30.09.2013 |
01.07. – 30.09.2012 |
01.01. – 30.09.2013 |
01.01. – 30.09.2012 |
01.01. – 31.12.2012 |
|
| Interest on bank deposits | 31 | 40 | 278 | 125 | 168 |
| Changes in the value of derivatives |
4,666 | 2,017 | 14,434 | 4,874 | 11,028 |
| Other interest | 278 | 125 | 358 | 385 | 531 |
| Financial income | 4,975 | 2,182 | 15,070 | 5,384 | 11,727 |
| Interest on revolving lines of credit and bank loans |
–1,974 | –2,956 | –6,458 | –10,414 | –13,101 |
| Interest-rate hedging expense |
–4,957 | –4,476 | –14,954 | –13,807 | –18,798 |
| Changes in the value of derivatives |
0 | 0 | 0 | 0 | 0 |
| Release of other result from cash fl ow hedging |
0 | 0 | 0 | 0 | –781 |
| Other fi nance costs | –1,151 | –560 | –2,646 | –1,541 | –2,177 |
| Financial expenses | –8,082 | –7,992 | –24,058 | –25,762 | –34,857 |
| FINANCIAL RESULT | –3,107 | –5,810 | –8,988 | –20,378 | –23,130 |
| Financial result adjusted for valuation eff ects |
–7,773 | –7,827 | –23,422 | –25,252 | –33,377 |
| 3rd quarter 2013 |
3rd quarter 2012 |
9 months 2013 |
9 months 2012 |
2012 | |
|---|---|---|---|---|---|
| 01.07. – 30.09.2013 |
01.07. – 30.09.2012 |
01.01. – 30.09.2013 |
01.01. – 30.09.2012 |
01.01. – 31.12.2012 |
|
| Net profi t for the period (EUR'000) |
1,939 | 6,426 | 19,685 | 11,736 | 25,461 |
| Number of shares issued |
63,077,300 | 57,343,000 | 63,077,300 | 57,343,000 | 57,343,000 |
| Weighted number of shares |
63,077,300 | 63,077,300 | 63,077,300 | 63,077,300 | 63,077,300 |
| EARNINGS PER SHARE (IN EURO) |
0.03 | 0.10 | 0.31 | 0.19 | 0.44 |
In application of IAS 33.64, the weighted number of shares for the previous year (57,343,000) was adjusted. In doing so, it was assumed that the weighted number of shares for 2012 corresponds to that for 2013.
The Managing Board was authorised, by resolution of the Annual General Meeting on 20 June 2012, to increase the share capital on one or more occasions with the consent of the Supervisory Board by up to a total of EUR 14,335,750 in exchange for cash contributions and/or con tributions in kind by issuing new, registered no-par value shares (Authorised Capital 2012) by 19 June 2017.
With the exception of the two asset management companies and PATRIZIA Alternative Investment GmbH, the operating subsidiaries headquartered in Germany were merged into PATRIZIA Deutschland GmbH as of 1 July 2013. International subsidiaries will continue to be run as independent entities. Functions within the new organisational structure will be bundled at national level and managed transnationally. The realignment ensures that PATRIZIA is prepared for further international growth.
From now on the business segments will no longer be categorised according to type of use into residential and commercial but according to whether PATRIZIA is acting as investor or service provider. In line with the Group's reporting for management purposes and in accordance with the defi nition contained in IFRS 8 "Operating segments", two segments have been identifi ed based on functional criteria: Investments and Management Services. Besides functional criteria, the two operating segments will also be delimited by geographical criteria. Country assignment will be eff ected according to the place of the real estate asset being supported. International subsidiaries will continue to be reported in total for the time being owing to the still low contribution made by national companies to revenues and results.
In addition, PATRIZIA Immobilien AG (corporate administration) together with the management of international subsidiaries will be reported under Corporate. Corporate does not constitute an operating segment with an obligation to report but is presented separately owing to its activity as an internal service provider and its transnational function.
The elimination of intercompany revenues, interim results and the reversal of intercompany interest charges will be performed via the Consolidation column. The "Group" column thus consolidates all internal services between the segments Investments and Management Services and the holding within a country; it represents the external service provided by the Group in the region concerned. Transnational consolidation is performed in the Corporate row.
The segment Investments primarily bundles portfolio management and the sale of own investments. As of the reporting date, the segment had a portfolio of around 4,600 residential units (31 December 2012: around 6,000) as well as three real estate developments that are reported as investment property and inventories. Clients include private and institutional investors that invest either in individual residential units or in real estate portfolios. It is planned to sell off the entire stock of own property as far as possible by the end of 2015.
Furthermore, the results of all participating interests (excluding interim profi ts) from co-investments are also reported in this segment.
The Management Services segment covers a wide spectrum of real estate services, in particular analysis and advice when purchasing individual residential and commercial properties or portfolios (Acquisition and Sales), the management of real estate (Property Management), valueoriented 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 will also be established and managed via the Group's two own asset management companies at a client's individual request. Commission revenues generated by services, both from co-investments and from business with third parties, are reported in the segment Management Services. These also include income from participating interests that are granted as interim profi ts for Asset Management of the two co-investments Südewo and GBW.
The range of services provided by the segment Management Services is being increasingly used by third parties as assets under management grow and PATRIZIA sells off more and more of its own portfolio.
The PATRIZIA Group'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, which for the purposes of internal control and reporting are referred to as EBT and operating EBT (operating result).
EBT, the measure of segment earnings, comprises the total of revenues, income from the sale of investment property, changes in inventories, cost of materials and staff costs, amortisation and depreciation, other operating income and expenses as well as income from participations (including investments valued at equity) and the fi nancial and currency result.
Certain adjustments are made in the course of determining operating EBT (operating result). First, these involve non-cash eff ects such as amortisation on other intangible assets (fund management contracts) transferred in the course of the acquisition of PATRIZIA GewerbeInvest Kapitalanlagegesellschaft mbH and Tamar Capital Group Ltd, unrealised changes in the value of investment property and the results of the market valuation of the interest-rate hedging instruments. Second, income-related realised changes in the value of investment property are then added to this.
Revenues arise between reportable segments. These intercompany services are invoiced at market prices.
Due to the capital intensity of the segment, the assets and liabilities in the Investments segment account for well over 90% of the Group's total assets and liabilities. For this reason, there is no breakdown of assets and liabilities by individual segment.
The individual segment fi gures are set out below. The reporting of amounts in EUR thousands can result in rounding diff erences. The calculation of individual fi nancial fi gures is carried out on the basis of non-rounded fi gures. Figures from the previous year have been adapted to the new structure.
| EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| Germany | |||||
| External revenues | 46,844 | 17,379 | 0 | 0 | 64,223 |
| Purchase price revenues from single unit sales |
11,487 | 0 | 11,487 | ||
| Purchase price revenues from block sales |
25,291 | 0 | 25,291 | ||
| Rental revenues | 7,415 | 7 | 7,421 | ||
| Revenues from services | 0 | 17,372 | 17,372 | ||
| Co-investments | 8,697 | 8,697 | |||
| Third parties | 8,676 | 8,676 | |||
| Other revenues | 2,651 | 0 | 2,651 | ||
| Intercompany revenues | –17 | 12,163 | 0 | –12,146 | 0 |
| International1 | |||||
| External revenues | 0 | 1,318 | 0 | 0 | 1,318 |
| Revenues from services | 1,318 | 1,318 | |||
| Third parties | 986 | 986 | |||
| Intercompany revenues | 0 | 923 | 0 | 0 | 923 |
| Corporate | |||||
| External revenues | 0 | 0 | 100 | 0 | 100 |
| Intercompany revenues | 0 | 0 | 3,437 | –3,437 | 0 |
| Consolidation | |||||
| External revenues | 0 | 0 | 0 | 0 | 0 |
| Intercompany revenues | 0 | –923 | –3,437 | 3,437 | –923 |
| Group | |||||
| External revenues | 46,844 | 18,697 | 100 | 0 | 65,642 |
| Purchase price revenues from single unit sales |
11,487 | 0 | 0 | 11,487 | |
| Purchase price revenues from block sales |
25,291 | 0 | 0 | 25,291 | |
| Rental revenues | 7,415 | 7 | 0 | 7,422 | |
| Revenues from services | 0 | 18,691 | 14 | 18,705 | |
| Co-investments | 9,029 | 14 | 9,043 | ||
| Third parties | 9,662 | 0 | 9,662 | ||
| Other revenues | 2,651 | 0 | 86 | 2,737 | |
| Intercompany revenues | –17 | 12,163 | 0 | –12,146 | 0 |
| Financial Result | –3,777 | 24 | 626 | 20 | –3,107 |
| Financial income | |||||
| Germany | 6,036 | 462 | 0 | 0 | 6,497 |
| International | 3,059 | 74 | 0 | 0 | 3,133 |
| Corporate | 0 | 0 | 2,078 | 0 | 2,078 |
| Consolidation | 0 | 0 | 0 | –6,733 | –6,733 |
| Group | 9,095 | 535 | 2,078 | –6,733 | 4,975 |
| Financial expenses | |||||
| Germany | –10,880 | –458 | 0 | 0 | –11,338 |
| International | –1,992 | –52 | 0 | 0 | –2,045 |
| Corporate | 0 | 0 | –1,452 | 0 | –1,452 |
| Consolidation | 0 | 0 | 0 | 6,753 | 6,753 |
| Group | –12,872 | –511 | –1,452 | 6,753 | –8,082 |
1 France, Great Britain, Luxembourg, Nordics
| EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| EBT (IFRS) | |||||
| Germany | 2,857 | 3,280 | 0 | 348 | 6,484 |
| International | 974 | –319 | 0 | 0 | 655 |
| Corporate | 0 | 0 | –4,962 | 0 | –4,962 |
| Consolidation | 0 | 0 | 0 | 20 | 20 |
| Group | 3,831 | 2,961 | –4,962 | 368 | 2,197 |
| Adjustments | |||||
| Germany | –2,326 | 523 | 0 | 0 | –1,803 |
| Signifi cant non-operating earnings | 4,666 | –523 | 0 | 0 | 4,143 |
| Market valuation income derivatives |
4,666 | 0 | 4,666 | ||
| Valuation of fund shares | 0 | –523 | –523 | ||
| Realised fair value | 2,340 | 0 | 0 | 0 | 2,340 |
| International | 0 | 126 | 0 | 0 | 126 |
| Signifi cant non-operating earnings | –126 | –126 | |||
| Valuation of fund shares | –126 | –126 | |||
| Group | –2,326 | 649 | 0 | 0 | –1,677 |
| Operating result (EBT) | |||||
| Germany | 531 | 3,803 | 0 | 348 | 4,682 |
| International | 974 | –193 | 0 | 0 | 781 |
| Corporate | 0 | 0 | –4,962 | 0 | –4,962 |
| Consolidation | 0 | 0 | 0 | 20 | 20 |
| Group | 1,505 | 3,610 | –4,962 | 368 | 521 |
| EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| Germany | |||||
| External revenues | 42,927 | 16,210 | 0 | 0 | 59,137 |
| Purchase price revenues from | |||||
| single unit sales | 25,275 | 0 | 25,275 | ||
| Purchase price revenues from block sales |
2,800 | 0 | 2,800 | ||
| Rental revenues | 10,561 | 0 | 10,561 | ||
| Revenues from services | 0 | 16,210 | 16,210 | ||
| Co-investments | 7,877 | 7,877 | |||
| Third parties | 8,333 | 8,333 | |||
| Other revenues | 4,292 | 0 | 4,292 | ||
| Intercompany revenues | 88 | 6,873 | 0 | –6,961 | 0 |
| International1 | |||||
| External revenues | 0 | 53 | 0 | 0 | 53 |
| Revenues from services | 53 | 53 | |||
| Third parties | 53 | 53 | |||
| Intercompany revenues | 0 | 809 | 0 | 0 | 809 |
| Corporate | |||||
| External revenues | 0 | 0 | 42 | 0 | 42 |
| Intercompany revenues | 0 | 0 | 2,448 | –2,448 | 0 |
| Consolidation | |||||
| External revenues | 0 | 0 | 0 | 0 | 0 |
| Intercompany revenues | 0 | –809 | –2,448 | 2,448 | –809 |
| Group | |||||
| External revenues | 42,928 | 16,263 | 42 | 0 | 59,233 |
| Purchase price revenues from single unit sales |
25,275 | 0 | 0 | 25,275 | |
| Purchase price revenues from | |||||
| block sales | 2,800 | 0 | 0 | 2,800 | |
| Rental revenues | 10,561 | 0 | 0 | 10,561 | |
| Revenues from services | 0 | 16,263 | 42 | 16,305 | |
| Co-investments | 7,877 | 42 | 7,918 | ||
| Third parties | 8,386 | 0 | 8,386 | ||
| Other revenues | 4,293 | 0 | 0 | 4,293 | |
| Intercompany revenues | 88 | 6,873 | 0 | –6,961 | 0 |
| Financial Result | –7,087 | –182 | 1,561 | –102 | –5,810 |
| Financial income | |||||
| Germany | 3,535 | 519 | 0 | 0 | 4,054 |
| International | 3,695 | 0 | 0 | 0 | 3,695 |
| Corporate | 0 | 0 | 2,342 | 0 | 2,342 |
| Consolidation | 0 | 0 | 0 | –7,909 | –7,909 |
| Group | 7,230 | 519 | 2,342 | –7,909 | 2,182 |
| Financial expenses | |||||
| Germany | –11,826 | –701 | 0 | 0 | –12,527 |
| International | –2,491 | 0 | 0 | 0 | –2,491 |
| Corporate | 0 | 0 | –781 | 0 | –781 |
| Consolidation | 0 | 0 | 0 | 7,807 | 7,807 |
| Group | –14,317 | –701 | –781 | 7,807 | –7,992 |
France, Great Britain, Luxembourg, Nordics
| EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| EBT (IFRS) | |||||
| Germany | 3,381 | 7,061 | 0 | –179 | 10,263 |
| International | 1,219 | 288 | 0 | 0 | 1,507 |
| Corporate | 0 | 0 | –4,396 | 0 | –4,396 |
| Consolidation | 0 | 0 | 0 | –87 | –87 |
| Group | 4,601 | 7,349 | –4,396 | –266 | 7,288 |
| Adjustments | |||||
| Germany | 4,758 | 492 | 0 | 0 | 5,250 |
| Signifi cant non-operating earnings | 2,017 | –492 | 0 | 0 | 1,525 |
| Market valuation income derivatives |
2,017 | 0 | 2,017 | ||
| Valuation of fund shares | 0 | –492 | –492 | ||
| Realised fair value | 6,775 | 0 | 0 | 0 | 6,775 |
| International | 0 | 0 | 0 | 0 | 0 |
| Group | 4,758 | 492 | 0 | 0 | 5,250 |
| Operating result (EBT) | |||||
| Germany | 8,139 | 7,553 | 0 | –179 | 15,513 |
| International | 1,219 | 288 | 0 | 0 | 1,507 |
| Corporate | 0 | 0 | –4,396 | 0 | –4,396 |
| Consolidation | 0 | 0 | 0 | –87 | –87 |
| Group | 9,359 | 7,841 | –4,396 | –266 | 12,538 |
| EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| Germany | |||||
| External revenues | 99,808 | 53,113 | 0 | 0 | 152,920 |
| Purchase price revenues from | |||||
| single unit sales | 41,862 | 0 | 41,862 | ||
| Purchase price revenues from block sales |
25,491 | 0 | 25,491 | ||
| Rental revenues | 24,000 | 7 | 24,007 | ||
| Revenues from services | 0 | 53,106 | 53,106 | ||
| Co-investments | 26,354 | 26,354 | |||
| Third parties | 26,751 | 26,751 | |||
| Other revenues | 8,454 | 0 | 8,454 | ||
| Intercompany revenues | 126 | 23,630 | 0 | –23,756 | 0 |
| International1 | |||||
| External revenues | 0 | 2,357 | 0 | 0 | 2,357 |
| Revenues from services | 2,357 | 2,357 | |||
| Third parties | 2,025 | 2,025 | |||
| Intercompany revenues | 0 | 1,435 | 0 | 0 | 1,435 |
| Corporate | |||||
| External revenues | 0 | 0 | 125 | 0 | 125 |
| Intercompany revenues | 0 | 0 | 9,606 | –9,606 | 0 |
| Consolidation | |||||
| External revenues | 0 | 0 | 0 | 0 | 0 |
| Intercompany revenues | 0 | –1,435 | –9,606 | 9,606 | –1,435 |
| Group | |||||
| External revenues | 99,808 | 55,470 | 125 | 0 | 155,403 |
| Purchase price revenues from single unit sales |
41,862 | 0 | 0 | 41,862 | |
| Purchase price revenues from | |||||
| block sales | 25,491 | 0 | 0 | 25,491 | |
| Rental revenues | 24,000 | 7 | 1 | 24,009 | |
| Revenues from services | 0 | 55,463 | 38 | 55,501 | |
| Co-investments | 26,686 | 38 | 26,724 | ||
| Third parties | 28,777 | 0 | 28,777 | ||
| Other revenues | 8,454 | 0 | 86 | 8,540 | |
| Intercompany revenues | 126 | 23,630 | 0 | –23,756 | 0 |
| Financial Result | –11,162 | –527 | 2,702 | 0 | –8,988 |
| Financial income | |||||
| Germany | 18,320 | 966 | 0 | 0 | 19,286 |
| International | 9,015 | 74 | 0 | 0 | 9,089 |
| Corporate | 0 | 0 | 5,529 | 0 | 5,529 |
| Consolidation | 0 | 0 | 0 | –18,834 | –18,834 |
| Group | 27,335 | 1,040 | 5,529 | –18,834 | 15,070 |
| Financial expenses | |||||
| Germany | –32,989 | –1,510 | 0 | 0 | –34,499 |
| International | –5,508 | –57 | 0 | 0 | –5,565 |
| Corporate | 0 | 0 | –2,827 | 0 | –2,827 |
| Consolidation | 0 | 0 | 0 | 18,834 | 18,834 |
| Group | –38,497 | –1,567 | –2,827 | 18,834 | –24,058 |
France, Great Britain, Luxembourg, Nordics
| EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| EBT (IFRS) | |||||
| Germany | 8,897 | 23,201 | 0 | 532 | 32,630 |
| International | 3,414 | –1,558 | 0 | 0 | 1,856 |
| Corporate | 0 | 0 | –14,501 | 0 | –14,501 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | 12,312 | 21,642 | –14,501 | 532 | 19,985 |
| Adjustments | |||||
| Germany | –3,116 | 1,538 | 0 | 0 | –1,578 |
| Signifi cant non-operating earnings | 14,434 | –1,538 | 0 | 0 | 12,896 |
| Market valuation income derivatives |
14,434 | 0 | 14,434 | ||
| Valuation of fund shares | 0 | –1,538 | –1,538 | ||
| Realised fair value | 11,318 | 0 | 0 | 0 | 11,318 |
| International | 0 | 252 | 0 | 0 | 252 |
| Signifi cant non-operating earnings | –252 | –252 | |||
| Valuation of fund shares | –252 | –252 | |||
| Group | –3,116 | 1,791 | 0 | 0 | –1,325 |
| Operating result (EBT) | |||||
| Germany | 5,781 | 24,739 | 0 | 532 | 31,052 |
| International | 3,414 | –1,306 | 0 | 0 | 2,108 |
| Corporate | 0 | 0 | –14,501 | 0 | –14,501 |
| Consolidation | 0 | 0 | 0 | 0 | 0 |
| Group | 9,195 | 23,433 | –14,501 | 532 | 18,660 |
| EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| Germany | |||||
| External revenues | 116,980 | 45,352 | 0 | 0 | 162,332 |
| Purchase price revenues from single unit sales |
67,031 | 0 | 67,031 | ||
| Purchase price revenues from block sales |
4,090 | 0 | 4,090 | ||
| Rental revenues | 32,971 | 0 | 32,971 | ||
| Revenues from services | 4 | 45,351 | 45,356 | ||
| Co-investments | 0 | 23,776 | 23,776 | ||
| Third parties | 4 | 21,576 | 21,580 | ||
| Other revenues | 12,884 | 0 | 12,884 | ||
| Intercompany revenues | 218 | 16,292 | 0 | –16,510 | 0 |
| International1 | |||||
| External revenues | 0 | 123 | 0 | 0 | 123 |
| Revenues from services | 123 | 123 | |||
| Third parties | 123 | 123 | |||
| Intercompany revenues | 0 | 809 | 0 | 0 | 809 |
| Corporate | |||||
| External revenues | 0 | 0 | 152 | 0 | 152 |
| Intercompany revenues | 0 | 0 | 5,720 | –5,720 | 0 |
| Consolidation | |||||
| External revenues | 0 | 0 | 0 | 0 | 0 |
| Intercompany revenues | 0 | –809 | –5,720 | 5,720 | –809 |
| Group External revenues |
116,980 | 45,475 | 152 | 0 | 162,607 |
| Purchase price revenues from | |||||
| single unit sales | 67,031 | 0 | 0 | 67,031 | |
| Purchase price revenues from block sales |
4,090 | 0 | 0 | 4,090 | |
| Rental revenues | 32,971 | 0 | 1 | 32,972 | |
| Revenues from services | 4 | 45,474 | 147 | 45,626 | |
| Co-investments | 0 | 23,776 | 147 | 23,923 | |
| Third parties | 4 | 21,699 | 0 | 21,703 | |
| Other revenues | 12,884 | 0 | 3 | 12,888 | |
| Intercompany revenues | 218 | 16,292 | 0 | –16,510 | 0 |
| Financial Result | –23,908 | –967 | 4,598 | –102 | –20,378 |
| Financial income | |||||
| Germany | 9,153 | 1,261 | 0 | 0 | 10,415 |
| International | 11,361 | 0 | 0 | 0 | 11,361 |
| Corporate | 0 | 0 | 6,538 | 0 | 6,538 |
| Consolidation | 0 | 0 | 0 | –22,930 | –22,930 |
| Group | 20,514 | 1,261 | 6,538 | –22,930 | 5,384 |
| Financial expenses | |||||
| Germany | –36,825 | –2,228 | 0 | 0 | –39,053 |
| International | –7,597 | 0 | 0 | 0 | –7,597 |
| Corporate | 0 | 0 | –1,940 | 0 | –1,940 |
| Consolidation | 0 | 0 | 0 | 22,828 | 22,828 |
| Group | –44,422 | –2,228 | –1,940 | 22,828 | –25,762 |
France, Great Britain, Luxembourg, Nordics
PROSECUTION
| EUR '000 | Investments | Management Services |
Corporate | Consolidation | Group |
|---|---|---|---|---|---|
| EBT (IFRS) | |||||
| Germany | 3,416 | 18,573 | 0 | 354 | 22,343 |
| International | 3,780 | 18 | 0 | 0 | 3,797 |
| Corporate | 0 | 0 | –9,739 | 0 | –9,739 |
| Consolidation | 0 | 0 | 0 | –87 | –87 |
| Group | 7,196 | 18,591 | –9,739 | 267 | 16,314 |
| Adjustments | |||||
| Germany | 8,268 | 1,476 | 0 | 0 | 9,744 |
| Signifi cant non-operating earnings | 4,874 | –1,476 | 0 | 0 | 3,398 |
| Market valuation income derivatives |
4,874 | 0 | 4,874 | ||
| Valuation of fund shares | 0 | –1,476 | –1,476 | ||
| Realised fair value | 13,141 | 0 | 0 | 0 | 13,141 |
| International | 0 | 0 | 0 | 0 | 0 |
| Group | 8,268 | 1,476 | 0 | 0 | 9,744 |
| Operating result (EBT) | |||||
| Germany | 11,684 | 20,049 | 0 | 354 | 32,087 |
| International | 3,780 | 18 | 0 | 0 | 3,797 |
| Corporate | 0 | 0 | –9,739 | 0 | –9,739 |
| Consolidation | 0 | 0 | 0 | –87 | –87 |
| Group | 15,463 | 20,067 | –9,739 | 267 | 26,058 |
At the reporting date, the Managing 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 consideration at arm's length conditions. All such transactions are conducted at arm's length and do not diff er substantially from transactions with other parties for the provision of goods and services.
The disclosures on related party transactions contained in section 9.3 of the notes to the consolidated fi nancial statements in the 2012 Annual Report remain valid.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim fi nancial reporting, we declare that the interim consolidated fi nancial statements give a true and fair view of the assets, liabilities, fi nancial position and profi t or loss of the Group and that the interim management report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the fi nancial year.
Wolfgang Egger Arwed Fischer Klaus Schmitt CEO CFO COO
| 7 November 2013 | Interim report for the fi rst nine months of 2013 |
|---|---|
| 27 March 2014 | Financial statements 2013 |
|---|---|
| 8 May 2014 | Interim report for the fi rst quarter of 2014 |
| 27 June 2014 | Annual General Meeting, Augsburg |
| 6 August 2014 | Interim report for the fi rst half of 2014 |
| 6 November 2014 | Interim report for the fi rst nine months of 2014 |
PATRIZIA Bürohaus Fuggerstrasse 26 86150 Augsburg Germany P + 49 821 50910-000 F + 49 821 50910-999 [email protected] www.patrizia.ag
Verena Schopp de Alvarenga P +49 821 50910-351 F +49 821 50910-399 [email protected]
Andreas Menke P + 49 821 50910-655 F + 49 821 50910-695 [email protected]
This interim report was published on 7 November 2013. This is a translation of the German interim report. In case of divergence from the German version, the German version shall prevail.
PATRIZIA Immobilien AG PATRIZIA Bürohaus Fuggerstrasse 26 86150 Augsburg
P +49 821 50910-000 F +49 821 50910-999 [email protected] www.patrizia.ag
Germany
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