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PATRIZIA AG
Interim / Quarterly Report • Sep 10, 2024
322_10-q_2024-09-10_6486b88f-54ae-4243-ba09-33d79e9c3f53.pdf
Interim / Quarterly Report
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PATRIZIA
Innovative by heritage.
PATRIZIA
H1 2024 | Financial Report
Contents
Key figures ..... 3
Interim group management report ..... 4
1 Economic report ..... 4
2 Development of opportunities and risks ..... 23
3 Guidance ..... 23
Consolidated financial statements ..... 25
Consolidated balance sheet ..... 25
Consolidated income statement ..... 27
Consolidated statement of comprehensive income ..... 28
Consolidated cash flow statement ..... 29
Consolidated statement of changes in equity ..... 31
Consolidated statement of changes in equity ..... 32
Notes to the interim consolidated financial statements ..... 33
1 Principles applied in the preparation of the interim consolidated financial statements ..... 33
2 Consolidated group ..... 33
3 Notes to the balance sheet and income statement ..... 35
4 Segment reporting ..... 49
5 Information on the consolidated cash flow statement ..... 52
6 Other explanations ..... 52
7 Responsibility Statement by the legal representatives ..... 54
The PATRIZIA share ..... 55
Financial calendar and contact details ..... 57
Key figures
Financial performance indicators
| H1 2024 | H1 2023 | Change | |
|---|---|---|---|
| Assets under Management (AUM) ${ }^{1}$ | EUR 56.0bn | EUR 57.9bn | $-3.2 \%$ |
| EBITDA | EUR 19.2m | EUR 28.4m | $-32.4 \%$ |
| EBITDA margin | $13.8 \%$ | $18.3 \%$ | $-4.5$ PP |
${ }^{1}$ AUM as at 31 December 2023; EUR 57.3bn (change 30 June 2024 vs. 31 December 2023: -2.1\%)
PP = percentage points
Revenues and earnings
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Revenues | 123,597 | 130,797 | $-5.5 \%$ |
| Total operating performance | 133,387 | 135,975 | $-1.9 \%$ |
| EBITDA | 19,184 | 28,365 | $-32.4 \%$ |
| EBIT | $-468$ | 14,139 | $-103.3 \%$ |
| EBT | $-1,900$ | 10,941 | $-117.4 \%$ |
| Net profit/ loss for the period | $-8,532$ | 5,735 | $-248.8 \%$ |
| Attributable to shareholders of the parent company | $-3,760$ | 6,064 | $-162.0 \%$ |
| Attributable to non-controlling interests | $-4,773$ | $-329$ | $>1,000.0 \%$ |
Structure of assets and capital
| EUR k | 30.06.2024 | 31.12.2023 | Change |
|---|---|---|---|
| Non-current assets | 1,569,943 | 1,481,479 | 6.0\% |
| Current assets | 380,675 | 517,626 | $-26.5 \%$ |
| Equity (excl. non-controlling interests) | 1,126,967 | 1,156,232 | $-2.5 \%$ |
| Equity ratio (excl. non-controlling interests) | 57.8\% | 57.8\% | $-0.1$ PP |
| Net equity ratio | 63.7\% | 69.0\% | $-5.3$ PP |
| Non-current liabilities | 468,421 | 552,245 | $-15.2 \%$ |
| Current liabilities | 280,366 | 251,075 | 11.7\% |
| Total assets | 1,950,618 | 1,999,105 | $-2.4 \%$ |
PP = percentage points
PATRIZIA share
| ISIN | DE000PAT1AG3 |
|---|---|
| SIN (Security Identification Number) | PAT1AG |
| Code | PAT |
| Issued shares as at 30.06 .2024 | $92,351,476$ shares |
| Outstanding shares as at 30.06 .20241 | $86,228,868$ shares |
| Treasury shares as at 30.06 .2024 | $6,122,608$ shares |
| H1 2024 high2 | EUR 8.94 |
| H1 2024 low ${ }^{2}$ | EUR 7.06 |
| Closing price as at 30.06 .20242 | EUR 7.12 |
| Share price performance H1 20243 | $-13.2 \%$ |
| Market capitalisation as at 30.06 .2024 | EUR 0.7bn |
| Average trading volume per day H1 20243 | 70,709 shares |
| SDAX, MSCI World Small Cap Index and others (CDAX, Classic All | |
| Indices | Share, DAXsector Financial Services, DAXsubsector Real Estate, |
| Solactive DIMAX Deutschland, Prime All Share, S\&P GIVI Global | |
| Index, S\&P Global BMI) |
[^0]
[^0]: ${ }^{1}$ Reduced number of shares compared to the issued shares due to share buybacks
${ }^{2}$ Closing price on Xetre-trading
${ }^{3}$ All German stock exchanges
Interim group management report
as at 30 June 2024 (first half-year 2024)
1 Economic report
1.1 Business performance
In a market environment still characterised by high uncertainty, the first half of the year 2024 continued to show pressure on PATRIZIA's revenues but at the same time a slight improvement in operating expenses. While recurring management fees and especially performance fees declined due to market conditions, transaction fees recorded a year-on-year increase.
As a result of the difficult market environment and despite the initial improvement in operating expenses, EBITDA recorded a decline of $32.4 \%$ to EUR 19.2 m in the 2024 reporting period after EUR 28.4 m in the period under comparison.
With a solid balance sheet structure based on a net equity ratio of $63.7 \%$ (H1 2023: 69.0\%) and available liquidity of EUR 133.3m (H1 2023: EUR 291.0m), PATRIZIA is nevertheless well positioned, despite increased investment activity via temporarily consolidated funds, to utilise investment opportunities when they occur and to pursue its strategy of moving towards a go-to manager for smart Real Asset solutions.
Development of financial performance indicators (KPIs)
Assets under management
As at 30 June 2024, PATRIZIA held Assets under Management (AUM) of EUR 56.0bn, down from EUR 57.3bn as at 31 December 2023 corresponding to a moderate decrease of EUR 1.2bn or $-2.1 \%$ mainly due to valuation effects. The general resilience of AUM is attributable to its broad geographical and sectorial diversification. At the reporting date, the share of AUM outside of Germany amounted to $46.9 \%$ or EUR 26.3bn of AUM ( 31 December 2023: $47.9 \%$ or EUR 28.3bn) while the infrastructure sector accounted for $17.2 \%$ of PATRIZIA's AUM (compared to $14.9 \%$ as at 31 December 2023).
Assets under Management (EUR bn)
- Office
- Residential
- Retail
- Logistics, Industrial \& Light Industrial
- Infrastructure
- Hotel
- Health Care
- Other
Assets under Management as at 30 June 2024 | Geographical distribution
- Germany
- UK \& Ireland
- France \& Belgium
- Nordics
- Asia-Pacific
- Netherlands
- Italy
- Spain
- North America
- Other
EBITDA and EBITDA margin
Composition of EBITDA (EUR m)
During the reporting period 2024, total service fee income decreased by $-9.6 \%$ to EUR 137.2m (H1 2023: EUR 151.8m) as a result of a difficult market environment. The individual components of total service fee income are explained below:
Management fees: All services provided by PATRIZIA are remunerated in form of fees. Management fees include remuneration for real asset services such as asset, fund and portfolio management and are highly recurring. Management fees of EUR 115.5 m were recognised in the first half-year 2024 (H1 2023: EUR 120.6m; -4.2\%). A higher level of management fees received from service project developments for clients in the previous year period as well as the slight decrease in AUM due to valuation effects (as a basis for the management fee generation) were the reasons for this development.
Transaction fees: PATRIZIA receives transaction fees for the execution of acquisitions and disposal transactions. These fees amounted to EUR 4.9 m in the first half of 2024 (H1 2023: EUR 4.1m; 19.5\%). Acquisitions accounted for EUR 1.7m (H1 2023: EUR 2.6m; -37.1\%) and disposals for EUR 3.2m (H1 2023: EUR 1.5m; 121.9\%). Despite a slight increase in the transaction fees the total transaction fees remain at a very low level due to challenging market environment.
Performance fees: PATRIZIA receives performance fees if defined target investment yields are met or exceeded. In the first half of 2024, performance fees of EUR 16.9 m were achieved (H1 2023: EUR 27.1m). In the consolidated income statement, these fees are reported partly as revenues (EUR 1.7m; H1 2023: EUR 7.2m) and partly as income from participations (EUR15.1m; H1 2023: EUR 19.9m). The performance fees mainly resulted from the co-investment Dawonia, which are incurred annually.
In the 2024 reporting period, PATRIZIA generated EUR 1.4 m in net sales revenues and co-investment income, (H1 2023: EUR 2.9m; -52.1\%). Co-investment income amounted to EUR -2.4m (H1 2023: EUR 1.1m). In addition to the decrease in the result from participations to EUR 1.7 m (H1 2023: EUR 2.1m) earnings from companies accounted for using the equity method had a negative impact of EUR -4.1m (H1 2023: EUR -0.9m). This was due to initial losses in one of the temporarily consolidated financial participations. In contrast, net sales revenues contributed EUR 3.8m (H1 2023: EUR 1.8m) to this result. The increase was mainly due to higher rental income from properties in temporarily consolidated funds, which are included in this position.
Net operating expenses decreased by $1.8 \%$ from EUR 133.1 m in the previous year to EUR 130.7 m in the reporting period 2024. The decrease reflects an overall progress of the cost reduction program as well as a lower headcount. In the current reporting period, a negative one-off effect of EUR 3.7 m was recognised in other operating expenses for a potential indemnity due to a tax penalty in one of the funds managed by PATRIZIA.
Other income rose by $65.0 \%$ to EUR 11.2 m (H1 2023: EUR 6.8m) mainly due to the reversal of variable staff cost liabilities as part of active cost management.
Due to the aforementioned factors, EBITDA totaled EUR 19.2m in the H1 2024 reporting period after EUR 28.4m in the same period of the previous year.
EBITDA margin
| in \% | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| EBITDA margin | $13.8 \%$ | $18.3 \%$ | $-4.5 \mathrm{PP}$ |
PP = percentage points
EBITDA margin compares EBITDA with the sum of total service fee income and net sales revenues and co-investment income. The EBITDA margin decreased year-on-year by -4.5 percentage points to $13.8 \%$ (H1 2023: 18.3\%) especially due to decrease in total service fee income which could not be compensated by a corresponding reduction in the operating expenses.
Detailed reconciliation to EBITDA
The individual components of EBITDA and their respective line items, in particular within the consolidated income statement, are explained below.
Detailed reconciliation to EBITDA
| EUR k | H1 2024 | H1 2023 | Change | Table in the current report |
|---|---|---|---|---|
| Management fees (excluding result from participations) | $\begin{gathered} 111,561 \ 3,892 \end{gathered}$ | $\begin{gathered} 116,011 \ 4,558 \end{gathered}$ | $\begin{gathered} -3.8 \% \ -14.6 \% \end{gathered}$ | Reconciliation of total service fee income |
| Shareholder contribution for management services (in result from participations) | 3,892 | 4,558 | $-14.6 \%$ | Reconciliation of total service fee income |
| Management fees | 115,453 | 120,568 | $-4.2 \%$ | |
| Transaction fees | 4,903 | 4,103 | $19.5 \%$ | Reconciliation of total service fee income |
| Performance fees (excluding result from participations) | 1,738 | 7,172 | $-75.8 \%$ | Reconciliation of total service fee income |
| Performance fees (in result from participations) | 15,124 | 19,908 | $-24.0 \%$ | Reconciliation of total service fee income |
| Performance fees | 16,862 | 27,081 | $-37.7 \%$ | |
| Total service fee income | 137,218 | 151,753 | $-9.6 \%$ | Reconciliation of total service fee income |
| Revenues from the sale of principal investments | 5 | 0 | / | Revenues |
| Cost of materials | $-252$ | $-118$ | $113.0 \%$ | Consolidated income |
| Rental revenues | 3,906 | 1,890 | $106.6 \%$ | |
| Revenues from ancillary costs | 154 | 43 | $260.5 \%$ | Revenues |
| Net sales revenues | 3,813 | 1,815 | $110.1 \%$ | |
| Earnings from companies accounted for using the equity method | $-4,071$ | $-950$ | $328.8 \%$ | Consolidated income statement |
| Remaining result from participations | 1,665 | 2,068 | $-19.5 \%$ | Consolidated income statement \& Reconciliation of total service fee income |
| Co-Investment result | $-2,407$ | 1,119 | $-315.1 \%$ | |
| Net sales revenues and co-investment income | 1,406 | 2,933 | $-52.1 \%$ | |
| Staff costs | $-83,646$ | $-85,789$ | $-2.5 \%$ | Consolidated income statement |
| Other operating expenses ${ }^{1}$ | $-37,531$ | $-38,436$ | $-2.4 \%$ | Consolidated income statement |
| Cost of purchased services | $-8,375$ | $-8,541$ | $-1.9 \%$ | Consolidated income statement |
| Impairment result for trade receivables and contract assets | $-22$ | $-53$ | $-57.9 \%$ | Consolidated income statement |
| Reorganisation expenses | $-1,098$ | $-311$ | $252.8 \%$ | Consolidated income statement |
| Operating expenses | $-130,673$ | $-133,131$ | $-1.8 \%$ | |
| Other operating income ${ }^{1}$ | 9,791 | 5,177 | $89.1 \%$ | Consolidated income statement |
| Other revenues | 1,330 | 1,578 | $-15.7 \%$ | Revenues |
| Reorganisation income | 111 | 54 | $105.2 \%$ | Consolidated income statement |
| Other income | 11,232 | 6,809 | $65.0 \%$ | |
| EBITDA | 19,184 | 28,365 | $-32.4 \%$ |
[^0]
[^0]: ${ }^{1}$ The previous year figures were restated in line with the new table structure in the year under review.
Further KPIs
Transaction volume based on signed transactions (EUR m)
$\bullet$ Acquisitions $\quad$ Disposals
Transaction volume based on closed transactions (EUR m)
$\bullet$ Acquisitions $\quad$ Disposals
The transaction market continued to be subject to high uncertainties about the economic environment in the 2024 reporting period. At EUR 784.5m, signed transactions in the first half of 2024 were below the level of the same period of the previous year (H1 2023: EUR 960.4m; -18.3\%), while closed transactions increased by $15.2 \%$ to EUR 1,479.6m (H1 2023: EUR 1,284.2m). PATRIZIA closed major acquisitions in the infrastructure and residential sectors on behalf of clients. Investments were also made via the Advantage Investment Partners platform. The majority of disposals of closed transactions related to commercial properties.
Equity raised (EUR m)
New equity raised from German and international investors for real estate and infrastructure investments increased by $82.6 \%$ to EUR 387.3 m (H1 2023: EUR 212.1m) in the first half of 2024, which can be seen as a first sign of an operating improvement. Moreover, PATRIZIA is ready to take opportunities for its clients once they arise, backed by approximately EUR 3bn client firepower in the funds managed.
1.2 Business Model
Company Profile
PATRIZIA is a leading European independent real asset investment manager ${ }^{1}$ with 910 employees (FTE) as at 30 June 2024 active in 27 locations worldwide. The Company's core business is real asset investment management, offering a comprehensive product portfolio of private and listed equity funds, private debt funds and fund of fund products in line with individual return expectations, diversification objectives and risk styles to more than 500 institutional and 7,000 semi-professional or private investors.
Products and Services
PATRIZIA's offering spans from real assets funds, bespoke account solutions, Global Partner (multi-manager or fund of fund) solutions, multi strategy solutions to landmark single asset \& portfolio deal opportunities to meet client preferences and requirements extensively and specifically. The Company provides a wide range of services, from asset and portfolio management to the execution of acquisitions and disposal transactions for almost all real estate and infrastructure sectors to alternative investments and project developments. Investors receive an "all-round solution" that covers all services and the entire value chain of real asset investments. Specific parts from this assortment can be chosen as well.
PATRIZIA's fund strategies are built on specialist expertise in various investment strategies and risk classes of real estate and infrastructure investments. In recent years, the Company has enriched its historically private markets-based equity product offering by listed equity, private debt and additional fund of fund strategies to offer investors comprehensive diversification opportunities.
The product shelf covers a broad range of real estate and infrastructure assets. The scope of real estate asset classes ranges from residential, office, retail and logistics properties to hotels and care homes. The product offering in infrastructure covers nearly all infrastructure sectors, such as energy, including renewables, distribution networks for electricity, communications, gas and heat, water and waste management as well as underground energy storage facilities, so called caverns, transport or social infrastructure, like schools and kindergardens.
PATRIZIA also offers its clients broad access to multi-manager products, so-called funds of funds, to invest in real estate, global infrastructure and private equity funds in Europe, Asia and the Americas.
The assets held by the funds typically have a planned initial holding period of between five and ten years, with a propensity for ten years.
[^0]
[^0]: ${ }^{1}$ Source: IREI Global Investment Managers, published in August 2023 (latest available set). Ranking based on Assets under Management.
Clients and regional platforms
PATRIZIA's clients include institutional and semi-professional investors such as insurance firms, pension fund institutions and sovereign funds from Germany, Europe, the US and Asia, high-net-worth individuals (HNWI) and private investors.
PATRIZIA seeks for a trust-based and reliable partnership with business partners and successful transactions for investors, and deems sustainable, prudent, and successful business operations to be the basis for this. Its brand and associated trust are considered essential for attracting new clients and extending existing business relationships. This is why the Company places great value on fostering the PATRIZIA brand and earning the trust of investors with every investment.
Overall, clients entrusted PATRIZIA with new equity of EUR 0.4bn in the first half of 2024 to be invested in various real asset strategies. PATRIZIA currently has outstanding equity commitments amounting to approximately EUR 3bn, as at 30 June 2024, which are available to make opportunistic asset or portfolio acquisitions on behalf of clients if and when opportunities arise.
PATRIZIA's regional platforms are well established throughout Europe and growing globally towards the Asian-Pacific region with a regional hub established in Singapore in 2022 but also towards the North American region where the Company currently maintains two offices. In total, regional platforms cover 27 locations of PATRIZIA offices to service clients and manage real assets locally as at 30 June 2024.
PATRIZIA is represented in all markets by teams or partners with long-standing and, above all, local expertise. The Company's regionally and nationally established network gives direct access to current market developments and tracks virtually all transactions relevant to its clients. It enables PATRIZIA to identify and pursue attractive investment opportunities in nearly all real estate and infrastructure asset classes as well as risk profiles.
PATRIZIA has various entities that are designed to manage investment assets, including German asset management companies and a regulated platform in each of Luxembourg, France, Denmark, the United Kingdom, and Australia. They make global investments in various real estate and infrastructure sectors, on behalf of their clients via the funds launched. The funds act as holding agents.
This provides the pre-requisites to offer investments within the legal and regulatory framework preferred by the respective clients according to their local regulations. Relationships with clients have been and continue to be expanded worldwide. Local contacts have been established in Australia, Singapore, Hong Kong, Japan, South Korea, the USA, and Canada. The existing client base in Germany and the rest of Europe is equally being expanded further. The aim is to build a long-term, stable relationship with international clients similarly to the relationship PATRIZIA already enjoys with its existing predominantly German investors.
Transition Megatrends that impact PATRIZIA's business
In the dynamic landscape of the current sector environment, PATRIZIA finds itself at the intersection of profound change, operating in a world in transition that significantly influences the way real assets are "consumed" - through changing lifestyles, ways of working and technological progress. Within this evolving context, PATRIZIA recognises and embraces four major transition megatrends that shape real estate and infrastructure investment strategies in the medium and long term: digital transition, urban transition 2.0, energy transition, and living transition, the so-called "DUEL" megatrends:
Digital Transition is at the forefront of revolutionising the real estate and infrastructure sectors, striving to enhance efficiency, decision-making processes, and overall performance. The infusion of new technologies has disrupted traditional paradigms, creating new opportunities for the development of future business models. A prime illustration is found in the widespread adoption of technologies like Fibre Optics, facilitating seamless communication and connectivity. Moreover, initiatives such as the co-sharing of real-time internet access between public and private users or the evolution of artificial intelligence exemplify the transformative power of digital innovations in creating interconnected and smart environments.
Urban Transition 2.0 signifies a transformative shift towards crafting more sustainable, connected, and efficient cities. At the core of this evolution is the recognition of cities as dynamic hubs of innovation for smart technologies, modern living and working concept, as well as decarbonisation measures. This transition is exemplified by the rise of shared offices and the adoption of flexible living conditions, emphasising part-time living models. By embracing these innovative approaches, Urban Transition 2.0 reflects a commitment to redefining urban spaces, making them not only technologically advanced but also adaptable to the changing needs of a dynamic and interconnected society. This paradigm shift underscores the vision of creating cities that serve as beacons of progress and improved quality of life for their inhabitants.
The Energy transition represents the fundamental shift in energy systems towards sustainability and efficiency. By leveraging cutting-edge technology and innovative strategies for energy production and storage through investments on behalf of clients, PATRIZIA aims to align and drive this transformative process. A prime illustration of this transition is evident in the widespread adoption of electric cars and the development of electric vehicle charging infrastructure. Embracing such advancements not only reduces the carbon footprint but also signifies a commitment to a cleaner, more sustainable energy future.
Living transition embodies the dynamic evolution of the real estate sector, adapting to demographics and the shifting landscapes of lifestyles, preferences, and technological advancements. The focus is on creating modern, connected, and usercentric living spaces that resonate with the diverse needs of today's inhabitants. An illustrative example lies in smart housing or the heightened demand for affordable housing, reflecting the urgency to address changing socio-economic dynamics.
Revenue Generation
The primary source of revenues for the Company are service fees in form of management, transaction and performance fees. However, revenues from co-investments and occasional rental revenues from assets held on the balance sheet also contribute to total revenues, albeit to a small level.
PATRIZIA structures, places and manages fund vehicles for clients. The majority of these funds are launched without any equity investment on the part of PATRIZIA. The Company generates stable and recurring income in the form of management fees for managing assets and project developments. The size of assets under management (AUM) therefore impacts the level of recurring fee income. AUM amounted to EUR 56.0bn as at 30 June 2024 (31 December 2023: EUR 57.3bn). Additional revenue streams stem from the acquisition and disposal of assets, so called transaction fees. PATRIZIA also receives performance fees if defined individual yield targets of funds or assets are exceeded.
PATRIZIA selectively invests Group equity in partnership with its institutional clients, in the form of co-investments. In addition to committing to the client and the transaction, PATRIZIA generates fees and additional investment income and thus allows PATRIZIA's shareholders to participate indirectly in the performance of the underlying real asset portfolio. Furthermore, management selectively uses existing liquidity to seed invest or warehouse assets being consolidated at the Group level. In total, PATRIZIA has invested EUR 0.5bn (at acquisition costs) of its own equity in moderately sized and well diversified seed investments or the warehousing of assets. As at 30 June 2024, AUM in the amount of EUR 10.2bn were backed by coinvestments, seed investments or warehousing. Thereof, the largest co-investment is Dawonia GmbH with EUR 5.0bn in assets under management. Further details on co-investments can be found in the capital allocation in chapter 1.3.
Segments
The segments Management Services and Investments categorise whether PATRIZIA acts as a service provider or an own balance sheet investor. In the Management Services segment, PATRIZIA generates fee income for the client services it performs. In the Investment segment, PATRIZIA generates income from its principal investments, co-investments, seed investments and occasionally rental revenues through the warehousing of assets.
The Management Services segment covers a broad range of real assets services such as the acquisition and sale of real estate and infrastructure assets or portfolios (transactions), value-oriented property management (asset management), strategic consulting on investment strategy, portfolio planning and allocation (portfolio management) and the execution of complex, non-standard investments (alternative investments).
Through the Group's own asset management entities investment funds are also set up and managed according to individual client requests. The service fee income generated from both co-investments and third-party business is reported in the Management Services segment. This also includes management and performance fees realised in income from participations due to services rendered as a shareholder contribution for the asset management of the co-investment Dawonia GmbH.
The Investments segment bundles co-investments, seed investments and warehousing assets, as well as certain historical principal investments which are being downsized according to strategy.
Consolidated Group
PATRIZA Group with its parent company PATRIZIA SE consists of 134 subsidiaries, eight at-equity entities and 23 branches. Currently, the legal entities and branches are mainly located in Europe, whereby the global presence is consistently extended as part of PATRIZIA's growth strategy.
1.3 Economic situation
EBITDA
In the first half-year 2024, PATRIZIA generated an EBITDA of EUR 19.2m.
The EBITDA is the Group's key performance indicator. The detailed reconciliation and development of the EBITDA is shown in the table below:
Reconciliation of EBITDA
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Total operating performance | 133,387 | 135,975 | $-1.9 \%$ |
| Cost of materials | $-252$ | $-118$ | $113.0 \%$ |
| Cost of purchased services | $-8,375$ | $-8,541$ | $-1.9 \%$ |
| Staff costs | $-83,646$ | $-85,789$ | $-2.5 \%$ |
| Other operating expenses ${ }^{1}$ | $-37,531$ | $-38,436$ | $-2.4 \%$ |
| Impairment result for trade receivables and contract assets | $-22$ | $-53$ | $-57.9 \%$ |
| Result from participations | 20,681 | 26,534 | $-22.1 \%$ |
| Earnings from companies accounted for using the equity method | $-4,071$ | $-950$ | $328.8 \%$ |
| EBITDAR | 20,171 | 28,622 | $-29.5 \%$ |
| Reorganisation result | $-987$ | $-257$ | $284.0 \%$ |
| EBITDA | 19,184 | 28,365 | $-32.4 \%$ |
${ }^{1}$ The previous year figures were restated in line with the new table structure in the year under review.
The individual components of the EBITDA are explained in more detail below according to their order in the consolidated income statement.
Revenues
In the first half-year 2024, revenues decreased from EUR 130.8m to EUR 123.6m (-5.5\%) compared to the same period of the previous year.
Revenues
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Revenues from management services | 118,202 | 127,287 | $-7.1 \%$ |
| Proceeds from the sale of principal investments | 5 | 0 | $/$ |
| Rental revenues | 3,906 | 1,890 | $106.6 \%$ |
| Revenues from ancillary costs | 154 | 43 | $260.5 \%$ |
| Other | 1,330 | 1,578 | $-15.7 \%$ |
| Revenues | $\mathbf{1 2 3 , 5 9 7}$ | $\mathbf{1 3 0 , 7 9 7}$ | $-5.5 \%$ |
Revenues from management services fell by -7.1\% from EUR 127.3m to EUR 118.2m in the reporting period compared to the previous year. However, revenues alone only provide a limited information value as certain profit and loss items are not included in revenues, such as the result from participations, which must also be taken into account in order to fully assess the Group's performance.
Including the income from the Dawonia GmbH co-investment, which is reported in result from participations, total service fee income amounted to EUR 137.2m, which corresponds to a reduction of -9.6\% compared to the previous year's figure of EUR 151.8m. Management fees including result from participations decreased by $-4.2 \%$ year-on-year to EUR 115.5m (H1 2023: EUR 120.6m) mostly due to lower management fees from project development for customers compared to the previous year as well as a reduction in assets under management being the result of a decrease in market values as the basis for calculating management fees. Transaction fees increased by 19.5\% to EUR 4.9m (H1 2023: EUR 4.1m) mainly due to a higher volume of sales fees. Furthermore, also due to the current market environment, performance fees including the result of co-investment Dawonia GmbH decreased to EUR 16.9m (H1 2023: EUR 27.1m; -37.7\%).
If the result from participations is shown separately within total service fee income, the following picture emerges:
Reconciliation of total service fee income
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Management fees (excluding result from participations) | 111,561 | 116,011 | $-3.8 \%$ |
| Performance fees (excluding result from participations) | 1,738 | 7,172 | $-75.8 \%$ |
| Transaction fees | 4,903 | 4,103 | $19.5 \%$ |
| Revenues from management services | $\mathbf{1 1 8 , 2 0 2}$ | $\mathbf{1 2 7 , 2 8 7}$ | $-7.1 \%$ |
| Performance fees (in result from participations) | 15,124 | 19,908 | $-24.0 \%$ |
| Shareholder contribution for management services (in result from participations) |
3,892 | 4,558 | $-14.6 \%$ |
| Total service fee income | $\mathbf{1 3 7 , 2 1 8}$ | $\mathbf{1 5 1 , 7 5 3}$ | $-9.6 \%$ |
Proceeds from the sale of principal investments were not material, as in the comparative period. This is consistent with the stronger strategic focus at the Investment Management services.
In the reporting period, PATRIZIA generated rental revenues of EUR 3.9m, compared with EUR 1.9m in H1 2023, in particular for properties only temporarily held on the balance sheet. The increase is mainly due to the addition of a logistics portfolio in a temporarily consolidated fund in the financial year 2024.
The increase of the revenues from ancillary costs relates to rental revenues and amounted to EUR 0.2 m in the period under review (H1 2023: EUR 0m).
Other essentially comprises transaction costs that are charged on to the corresponding investment vehicles. This item decreased from EUR 1.6 m in the same period of the previous year to EUR 1.3 m in the first half-year 2024.
Total operating performance
Total operating performance reflects PATRIZIA's operating performance and is comprised of revenues and other operating income. In the first half-year 2024, total operating performance decreased by $-1.9 \%$ to EUR 133.4 m , compared to EUR 136.0 m in the same period of the previous year.
Reconciliation of total operating performance
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Revenues | 123,597 | 130,797 | $-5.5 \%$ |
| Other operating income ${ }^{1}$ | 9,791 | 5,177 | $89.1 \%$ |
| Total operating performance | 133,387 | 135,975 | $-1.9 \%$ |
${ }^{1}$ The previous year figures were restated in line with the new table structure in the year under review.
Other operating income amounted to EUR 9.8 m in the first half-year 2024 (H1 2023 EUR 5.2 m ). The increase is mainly due to the income from expired obligations of EUR 7.6 m (H1 2023: EUR 1.7 m ) and relates in particular to the reversal of liabilities for variable remuneration. In contrast, the other effects declined due to the gain on disposal from the sale of a stake in control.IT Unternehmensberatung GmbH recognised in the first half of 2023.
Other operating income
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Income from discontinued obligations | 7,573 | 1,730 | $337.8 \%$ |
| Income from payments in kind | 433 | 505 | $-14.2 \%$ |
| Income from the deconsolidation of subsidiaries ${ }^{1}$ | 971 | 1,077 | $-9.8 \%$ |
| Other | 814 | 1,866 | $-56.4 \%$ |
| Total | 9,791 | 5,177 | $89.1 \%$ |
Cost of materials
The cost of materials includes mainly non-recoverable maintenance measures for properties. Compared to the same period of the previous year, the cost of materials increased by $113.0 \%$ year-on-year from EUR 0.1 m to EUR 0.3 m due to the addition of temporarily consolidated funds.
Costs for purchased services
The cost of purchased services includes in particular the purchase of fund management services for external label funds for which PATRIZIA Immobilien Kapitalverwaltungsgesellschaft mbH acts as a service KVG. In order to ensure an improved presentation of the earnings situation, transaction costs that are incurred to generate sales revenue and can generally be charged on have also been reported in this item. In the first half-year, 2024 the cost of purchased services amounted to EUR 8.4 m (H1 2023: EUR 8.5m).
Staff costs
As at 30 June 2024 PATRIZIA had 910 employees based on full-time equivalents (FTE 30 June 2023: 1,009 employees).
Staff costs
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Fixed salaries | 49,030 | 50,356 | $-2.6 \%$ |
| Variable salaries | 22,359 | 22,675 | $-1.4 \%$ |
| Social security contributions | 10,562 | 10,505 | $0.5 \%$ |
| Effect of long-term variable remuneration ${ }^{1}$ | $-88$ | 150 | $-158.8 \%$ |
| Other | 1,784 | 2,103 | $-15.2 \%$ |
| Total | 83,646 | 85,789 | $-2.5 \%$ |
${ }^{1}$ Changes in value of long-term variable remuneration due to change in the company's share price
Due to the reduced headcount, staff costs fell in the first half-year 2024 despite general inflation-related salary adjustments.
Valuation effects relating to the phantom shares program led to an expense adjustment of EUR -0.1 m (H1: EUR 0.1 m ) due to the lower PATRIZIA share price.
The Other item mainly includes non-cash benefits.
Other operating expenses
Other operating expenses totalled EUR 37.5 m in the first half-year 2024 and were therefore $-2.4 \%$ lower compared to the same period of the previous year. Below is a detailed breakdown:
Other operating expenses
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Tax, legal, other advisory and financial statement fees | 8,436 | 9,301 | $-9.3 \%$ |
| IT and communication costs and cost of office supplies | 8,239 | 8,721 | $-5.5 \%$ |
| Rent, ancillary costs and cleaning costs | 2,044 | 1,945 | $5.1 \%$ |
| Other taxes | 167 | 400 | $-58.3 \%$ |
| Vehicle and travel expenses | 2,949 | 3,959 | $-25.5 \%$ |
| Advertising costs | 1,789 | 1,782 | $0.4 \%$ |
| Recruitment and training costs and cost of temporary workers | 1,742 | 3,748 | $-53.5 \%$ |
| Contributions, fees and insurance costs | 2,558 | 2,759 | $-7.3 \%$ |
| Commission and other sales costs | 403 | 560 | $-28.0 \%$ |
| Costs of management services | 1,818 | 1,284 | $41.6 \%$ |
| Indemnity/reimbursement | 3,667 | 59 | $>1,000.0 \%$ |
| Other ${ }^{1}$ | 3,719 | 3,915 | $-5.0 \%$ |
| Total | 37,531 | 38,436 | $-2.4 \%$ |
${ }^{1}$ The previous year figures were restated in line with the new table structure in the year under review.
The decline in the individual expense types generally reflects the reduced cost base as part of the cost reduction programme initiated in 2023. The main offsetting effects are the recognition of a reimbursement of EUR 3.7 m due to potential damages resulting from a tax-related penalty imposed on a fund managed by PATRIZIA and the project-related increase in the cost of management services by $41.6 \%$ to EUR 1.8 m .
Impairment losses for trade receivables and contract assets
This item includes impairment losses for other trade receivables and other assets in the amount of EUR 0 m (H1: 2023 EUR 0.1 m ).
Result from participations and earnings from companies accounted for using the equity method PATRIZIA generated a result from participations of EUR 20.7 m in H1 2024 (H1 2023: EUR 26.5m, -22.1\%). Overall, income from the Co-Investment Dawonia GmbH of EUR 20.6m (H1 2023: EUR 26.1m) was recognised, whereby the decrease compared to the previous year period is mainly due to a reduction in performance fees, in line with management expectations.
The earnings from companies accounted for using the equity method totaled EUR -4.1m in the reporting period (H1 2023: EUR -0.9m). The increase in the negative result is mainly due to the scheduled start-up losses of Mercury Lux S.à r.I., in which the Group holds a stake via a temporarily consolidated infrastructure fund.
The result from participations and earnings from companies accounted for using the equity method reflect the investment income from the co-investments and, in the case of Dawonia GmbH, the investment result also includes management fees and performance-related fees.
Result from participations
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| Dawonia GmbH | 20,628 | 26,078 | -20.9\% |
| Other | 53 | 457 | -88.3\% |
| Result from participations | 20,681 | 26,534 | -22.1\% |
| Earnings from companies accounted for using the equity | -4,071 | -950 | $328.8 \%$ |
| method | 16,610 | 25,585 | -35.1\% |
Reorganisation result
Compared to the same period last year, reorganisation expenses totalled EUR 1.1m (H1 2023: EUR 0.3m). Provisions from the reorganisation that are no longer required are released to the income statement. In the first half-year 2024 reorganisation income amounted to EUR 0.1 m (H1 2023: EUR 0.1 m ) due to reversals of provisions recognised in the income statement.
Net profit/ loss for the period
In the first half-year 2024 the net profit/ loss for the period declined to EUR -8.5m (H1 2023: EUR 5.7m; -248.8\%, which is mainly due to the reduction of EBITDA and negative results from fair value adjustments to investment property.
Reconciliation of net profit/ loss for the period
| EUR k | H1 2024 | H1 2023 | Change |
|---|---|---|---|
| EBITDA | 19,184 | 28,365 | $-32.4 \%$ |
| Depreciation, amortisation and impairment | -13,414 | -14,226 | $-5.7 \%$ |
| Results from fair value adjustments to investment property | -6,238 | 0 | $f$ |
| Earnings before interest and taxes (EBIT) | -468 | 14,139 | $-103.3 \%$ |
| Finance income | 7,459 | 5,401 | $38.1 \%$ |
| Financial expenses | -6,264 | -4,449 | $40.8 \%$ |
| Other financial result | 0 | -722 | $-100.0 \%$ |
| Result from currency translation | -2,627 | -3,428 | $-23.4 \%$ |
| Financial result | -1,432 | -3,198 | $-55.2 \%$ |
| Earnings before taxes (EBT) | -1,900 | 10,941 | $-117.4 \%$ |
| Income taxes | -6,632 | -5,206 | $27.4 \%$ |
| Net profit/ loss for the period | -8,532 | 5,735 | $-248.8 \%$ |
The following section discusses the relevant items of the reconciliation of consolidated net profit / loss for the period.
Depreciation, amortisation and impairment
Depreciation, amortisation and impairment decreased to EUR 13.4 m (H1 2023: EUR 14.2m; -5.7\%) and mainly includes amortisation of fund management contracts and licenses of EUR 4.8 (H1 2023: EUR 6.4m), amortisation of rights of use assets of EUR 5.7 m (H1 2023: EUR 5.0m) and amortisation of software and depreciation of operating and office equipment of EUR 2.3 m (H1 2023: EUR 2.5m). The reduction in amortisation for fund management contracts is mainly the result of lower carrying amounts due to impairments in the financial year 2023 and the increase in depreciation for rights of use assets is due to increased rights of use assets as a result of new PATRIZIA office space in London.
Results from fair value adjustments to investment property
In the reporting period, the Group recognised results from fair value adjustments to investment property in the amount of EUR -6.2 m (H1 2023: EUR 0m). The changes in value relate to properties held by temporarily consolidated funds and are driven by the changed market environment with subsequent valuation impact.
Net finance costs
Financial income increased to EUR 7.5 m , after EUR 5.4 m in the previous year ( $38.1 \%$ ). The increase was primarily attributable to the interest income from a shareholder loan to a temporarily consolidated at equity participation.
Financial income was offset by financial expenses of EUR 6.3 m (H1 2023 EUR 4.4m, 40.8\%), the increase was mainly due to interest expenses on loans in temporarily consolidated funds.
In the first half-year 2024, the result from currency translation amounted to EUR -2.6 m (H1 2023 EUR -3.4m). Unrealised exchange rate effects of EUR $-2,7 \mathrm{~m}$ (H1 2023: EUR 1.9m) were the major driver as there were no material realised exchange rate effects in the first half-year 2024 (H1 2023: EUR -1.8m). Unrealised exchange losses are mainly related to currency retranslation of the Japanese Yen to Euro and the British Pound Sterling to Euro.
Income taxes
Income taxes amounted to EUR 6.6 m in the first half-year 2024 compared to EUR 5.2 m in the previous period ( $27,4 \%$ ). The tax rate (income taxes in relation to EBT) was $-349.1 \%$ in the reporting period (H1 2023: 43.0\%). Due to the lack of offsetting options when calculating income taxes and the non-capitalisation of deferred tax assets on current losses, the Group recognised an income tax expense despite a negative pre-tax result.
Key asset and financial data
PATRIZIA's strong balance sheet and financial situation continue to provide a good basis for the successful implementation of its mid-term strategy.
PATRIZIA's key asset and financial data at a glance
| EUR k | 30.06.2024 | 31.12.2023 | Change |
|---|---|---|---|
| Total assets | 1,950,618 | 1,999,105 | $-2.4 \%$ |
| Equity (excl. non-controlling interests) | 1,126,967 | 1,156,232 | $-2.5 \%$ |
| Equity ratio | $57.8 \%$ | $57.8 \%$ | $-0,1$ PP |
| Cash and cash equivalents | 181,041 | 340,181 | $-46.8 \%$ |
| + Term deposits | 35,719 | 10,497 | $240.3 \%$ |
| - Bank loans | $-227,763$ | $-164,571$ | $38.4 \%$ |
| - Bonded loans | $-69,000$ | $-158,000$ | $-56.3 \%$ |
| - Net cash (+) / net debt (-) | $-80,004$ | 28,108 | $-384.6 \%$ |
| Net equity ratio ${ }^{1}$ | $63.7 \%$ | $69.0 \%$ | $-5,3$ PP |
${ }^{1}$ Net equity ratio: Equity (excl. non-controlling interests) divided by total net assets (total assets less financial liabilities covered by cash in hand)
PP = Percentage points
Total assets
The Group 's total assets are almost stable with EUR 2.0 bn as at 30 June 2024.
Equity
Equity (excluding non-controlling interests) remained almost stable with EUR 1.1bn (31 December 2023: EUR 1.2bn).
The net equity ratio decreased slightly to $63.7 \%$ (31 December 2023: 69.0\%) due to increased investments for temporarily consolidated funds and assets.
Please refer to the statement of changes in equity for further information on changes in equity of the first half-year 2024.
Liquidity
PATRIZIA had available liquidity of EUR 133.3 as at 30 June 2024 compared to EUR 291.0 at the end of 2023
Available Liquidity
| EUR k | $30.06 .2024$ | 31.12 .2023 |
|---|---|---|
| Cash and cash equivalents | 181,041 | 340,181 |
| Term deposits | 35,719 | 10,497 |
| Liquidity | 216,759 | 350,679 |
| Regulatory reserve for asset management companies | $-47,385$ | $-47,190$ |
| Transaction related liabilities and blocked cash | $-5,940$ | 0 |
| Liquidity, PATRIZIA cannot freely access | $-30,133$ | $-12,467$ |
| Available liquidity | 133,301 | 291,022 |
Total Liquidity amounted to EUR 216.8 m ( 31 December 2023 EUR 350.7m). The decrease is mainly due to the activity within one of the temporary consolidated funds that acquired a participation in a company accounted for using the equity method, a scheduled redemption of the current bonded loan tranche as well as the dividend payment to the shareholders for the financial year 2023. A total of EUR 35.7 m is invested in deposits.
PATRIZIA cannot freely dispose of its available liquidity in total. Cash and cash equivalents of EUR 47.4 m in total must be permanently retained for asset management companies and closed-ended funds to comply with the relevant regulatory requirements. Furthermore, liquidity in the amount of EUR 30.1 m is tied up in consolidated companies, which PATRIZIA cannot freely access.
Financial liabilities
The financial liabilities decreased from EUR 322.6m to EUR 296.8m as at 30 June 2024 compared to 31 December 2023, due to the scheduled redemption of the current bonded loan tranche in the amount of EUR 89.0m. Conversely, a temporarily consolidated fund obtained a short-term bank loan totalling EUR 46.8 m to finance the acquisition of a financial investment.
The outstanding tranche of the bonded loan taken out in the 2017 financial year in the amount of EUR 69.0m matures in 2027 and is presented accordingly as non-current bonded loans. The outstanding loan amount bears a fixed interest rate.
Non-current bank loans of EUR 180.9m are mainly loans for real estate properties consolidated within the Group.
Financial liabilities developed as follows as against the end of 2023:
| Financial liabilities | |||
|---|---|---|---|
| EUR k | 30.06 .2024 | 31.12 .2023 | Change |
| Non-current bonded loans | 69,000 | 69,000 | $0.0 \%$ |
| Current bonded loans | 0 | 89,000 | $-100.0 \%$ |
| Non-current bank loans | 180,935 | 164,571 | $9.9 \%$ |
| Current bank loans | 46,828 | 0 | $/$ |
| Total financial liabilities | 296,763 | 322,571 | $-8.0 \%$ |
Capital Allocation
An overview of all PATRIZIA's participations, assets under management and invested capital can be found in the following table.
PATRIZIAs capital allocation as at 30 June 2024
| Assets under Management |
Invested capital (fair value) | Invested capital (at cost) | Participations | |
|---|---|---|---|---|
| EUR m | EUR m | EUR m | in\% | |
| Third-party business | 45,856.7 | 0.0 | ||
| Co-Investments and Warehousing | 10,183.7 | 882.1 | 490.2 | |
| Real estate - residential | 5,180.0 | 566.3 | 174.3 | |
| thereof Dawonia GmbH | 5,042.3 | $158.3^{1}$ | 51.7 | 5.1 |
| thereof Dawonia profit entitlements | 290.71 | 0.0 | 0.1 | |
| Real estate - balanced | 2,572.6 | 92.5 | 96.1 | |
| Real estate - commercial | 668.0 | $64.9^{1}$ | 60.7 | |
| Infrastructure | 1,720.5 | 153.7 | 153.8 | |
| Venture capital | 17.1 | 3.4 | 4.1 | |
| Private equity | 25.6 | 1.3 | 1.2 | |
| Principal investments | 2.2 | 2.4 | ||
| Other balance sheet items | 405.92 | |||
| Tied-up investment capital | 56,042.5 | 1,290.4 | ||
| Available liquidity | 133.3 | |||
| Total investment capital | 56,042.5 | 1,423.7 | ||
| of which debt (bonded loans - PATRIZIA Group corporate financing) | 69.0 | |||
| of which debt (financing for temporarily consolidated assets and portfolios) | 227.8 | |||
| of which equity PATRIZIA (without non-controlling interests) | 1,127.0 |
${ }^{1}$ After deduction of deferred taxes from the valuation according to IFRS 9.
${ }^{2}$ Including goodwill and fund management contracts.
PATRIZIA selectively invests Group equity in partnerships with its institutional clients, in the form of co investments, of which Dawonia GmbH is the largest co-investment. In addition, PATRIZIA uses equity to temporarily consolidate assets and portfolios with the aim of later contributing them to funds financed by clients.
PATRIZIA holds a stake in a very attractive residential real estate portfolio via Dawonia GmbH. With around 27,000 flats, Dawonia is one of the largest housing companies in Munich and southern Germany. For 80 years, Dawonia has been planning, developing, building and managing high-quality, affordable apartments which are in high demand, particularly in urban growth regions. The company therefore is very well positioned in this market segment. Around $80 \%$ of the housing stock is concentrated in the 20 largest locations in southern Germany, i.e. in conurbations such as Munich and the surrounding area, as well as Nuremberg, Erlangen, Regensburg and Würzburg. Dawonia is now also active outside Bavaria, for example in Hesse.
Furthermore, PATRIZIA holds an interest in OSCAR Lux Carry SCS (Dawonia profit entitlements - see table above), which entitles PATRIZIA to a variable profit share in connection with the Dawonia investment. The investor consortium and PATRIZIA recently agreed to extend the investment phase of the fund mid-term. The initial investment phase was previously set for 10 years and would have ended in 2023. Against this backdrop, a decision on the possible sale or retention of the $5.1 \%$ stake in Dawonia GmbH and the realisation of the entitlement to the variable profit share is now expected mid-term accordingly.
In the first half of 2024, further seed investments were made in line with strategy, particularly in the area of infrastructure.
2 Development of opportunities and risks
PATRIZIA is exposed to both opportunities and risks as part of its business activities. PATRIZIA's risk management process is designed to identify, record and monitor relevant risks and to define and implement suitable control measures.
In the first half of 2024, the investment and transaction markets for property and infrastructure continued to be negatively impacted by the ongoing pricing process of market participants. In addition, the current market environment, in particular the increased uncertainty caused by interest rate volatility and geopolitical tensions, poses major challenges for key areas of PATRIZIA's business activities. However, the assessment of developments in the risk environment during the year does not lead to any substantial changes in the statements made in the Group Annual Report 2023 with regard to PATRIZIA's risk coverage potential. The probability of risks which pose a risk to the continued existence of the Company is considered to be low. Nevertheless, the risk situation overall has deteriorated (compared to the assessment as at 31 December 2023), in particular due to the continuing uncertainty on the transaction market and valuation risks stemming from temporarily consolidated funds and assets.
Furthermore, the internal control system continues to be subject to constant further development and adjustment. The Board of Directors and the Executive Directors continued to implement measures to strengthen the appropriateness and effectiveness of the internal control system in the first half of 2024.
In addition, the statements in the opportunity and risk report contained in PATRIZIA's Annual Report 2023 continue to apply. For a detailed presentation of the opportunities and risks in the Group, please refer to chapter 7 of the Annual Report 2023.
3 Guidance
PATRIZIA remains cautiously optimistic for 2024. The current macro-economic environment remains a challenge for the majority of the Group's clients, especially in the real estate investment sector. Client investment activity is expected to pick up throughout FY 2024 assuming a normalisation of the interest rate environment and increased activity in the transaction markets, once potential buyers and sellers agree on new price levels following the change in the interest rate environment. It is expected that the valuation pressure on real estate will continue into the 2024 financial year.
Nevertheless, due to its global platform and broadly diversified product offering, PATRIZIA nevertheless expects to once again successfully exploit market opportunities for its institutional, semi-professional and private investors through its attractive real estate and infrastructure fund products.
PATRIZIA confirms the financial year 2024 guidance ranges. Due to material downside and upside risks stemming from temporarily consolidated assets and funds as well as potential non-operational one-off items, a narrowing of the guidance range is expected later in 2024.
Guidance FY 2024
| Guidance range 2024 | |||||
|---|---|---|---|---|---|
| Assets under Management | EUR bn | $\mathbf{5 7 . 3}$ | $\mathbf{5 6 . 0}$ | $\mathbf{5 4 . 0}$ | $\mathbf{6 0 . 0}$ |
| EBITDA | EUR m | $\mathbf{5 4 . 1}$ | $\mathbf{1 9 . 2}$ | $\mathbf{3 0 . 0}$ | $\mathbf{6 0 . 0}$ |
| EBITDA margin | $\%$ | $\mathbf{1 7 . 0 \%}$ | $\mathbf{1 3 . 8 \%}$ | $\mathbf{1 1 . 0 \%}$ | $\mathbf{1 9 . 2 \%}$ |
Augsburg, 13 August 2024
The Executive Directors
This report contains certain forward-looking statements that relate in particular to the business development of PATRIZIA, 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 statement or estimate inaccurate or cause actual results to differ from the results currently expected.
Consolidated financial statements
Consolidated balance sheet
as at 30 June 2024
Assets
| EUR k | 30.06.2024 | 31.12.2023 |
|---|---|---|
| A. Non-current assets | ||
| Goodwill | 379,797 | 376,719 |
| Other intangible assets | 84,882 | 89,320 |
| Software | 5,873 | 6,725 |
| Rights of use | 46,801 | 51,296 |
| Investment property | 253,251 | 246,481 |
| Equipment | 28,496 | 14,580 |
| Participations in companies accounted for using the equity method | 143,390 | 40,412 |
| Participations | 587,654 | 594,686 |
| Other non-current financial assets (FVTPL) | 10,906 | 10,203 |
| Other non-current financial assets (AC) | 19,462 | 41,146 |
| Other non-current non-financial assets | 1,778 | 2,281 |
| Deferred tax assets | 7,652 | 7,630 |
| Total non-current assets | 1,569,943 | 1,481,479 |
| B. Current Assets | ||
| Inventories | 281 | 281 |
| Current tax assets | 23,615 | 21,091 |
| Current receivables and other current financial assets | 169,018 | 150,202 |
| Other current non-financial assets | 6,721 | 5,871 |
| Cash and cash equivalents | 181,041 | 340,181 |
| Total current assets | 380,675 | 517,626 |
| Total assets | 1,950,618 | 1,999,105 |
Liabilities
| EUR k | 30.06.2024 | 31.12.2023 |
|---|---|---|
| A. Equity | ||
| Share capital | 86,229 | 85,844 |
| Capital reserves | 68,386 | 65,704 |
| Retained earnings | ||
| Legal reserves | 505 | 505 |
| Currency translation difference | 3,686 | $-3,853$ |
| Remeasurements of defined benefit plans according to IAS 19 | 2,943 | 2,943 |
| Revaluation reserve according to IFRS 9 | 124,021 | 130,660 |
| Consolidated unappropriated profit | 841,198 | 874,429 |
| Non-controlling interests | 74,863 | 39,553 |
| Total equity | 1,201,831 | 1,195,785 |
| B. Liabilities | ||
| NON-CURRENT LIABILITIES | ||
| Deferred tax liabilities | 101,568 | 103,495 |
| Retirement benefit obligations | 20,303 | 20,473 |
| Non-current bonded loans | 69,000 | 69,000 |
| Non-current bank loans | 180,935 | 164,571 |
| Non-current accruals | 1,786 | 1,774 |
| Other non-current financial liabilities | 53,260 | 149,912 |
| Non-current lease liabilities | 41,568 | 43,020 |
| Total nun-current liabilities | 468,421 | 552,245 |
| CURRENT LIABILITIES | ||
| Current bank loans | 46,828 | 0 |
| Current bonded loans | 0 | 89,000 |
| Other provisions | 23,920 | 30,230 |
| Other current financial liabilities | 185,558 | 102,945 |
| Current derivative financial instruments | 222 | 297 |
| Other current non-financial liabilities | 8,739 | 9,403 |
| Current lease liabilities | 8,765 | 10,324 |
| Income tax liabilities | 6,333 | 8,876 |
| Total current liabilities | 280,366 | 251,075 |
| Total equity and liabilities | 1,950,618 | 1,999,105 |
Consolidated income statement
for the period from 1 January to 30 June 2024
| EUR k | 022024 | Q2 2023 | H1 2024 | H1 2023 | Change |
|---|---|---|---|---|---|
| Revenues | 65,614 | 67,935 | 123,597 | 130,797 | $-5.5 \%$ |
| Other operating income ${ }^{1}$ | 4,725 | 2,388 | 9,791 | 5,177 | 89.1\% |
| Total operating performance | 70,338 | 70,322 | 133,387 | 135,975 | $-1.9 \%$ |
| Cost of materials | $-74$ | $-59$ | $-252$ | $-118$ | 113.0\% |
| Cost of purchased services | $-4,067$ | $-4,431$ | $-8,375$ | $-8,541$ | $-1.9 \%$ |
| Staff costs | $-42,071$ | $-45,430$ | $-83,646$ | $-85,799$ | $-2.5 \%$ |
| Other operating expenses ${ }^{1}$ Impairment result for trade receivables and contract assets | $-21,891$ | $-21,567$ | $-37,531$ | $-38,436$ | $-2.4 \%$ |
| Result from participations | $-8$ | $-48$ | $-22$ | $-53$ | $-57.9 \%$ |
| Earnings from companies accounted for using the equity method | 2,800 | 3,523 | 20,681 | 26,534 | $-22.1 \%$ |
| EBITDAR | 1,893 | 1,299 | 20,171 | 28,622 | $-29.5 \%$ |
| Reorganisation income | 109 | 54 | 111 | 54 | 105.2\% |
| Reorganisation expenses | $-131$ | $-169$ | $-1,098$ | $-311$ | 252.8\% |
| EBITDA | 1,871 | 1,184 | 19,184 | 28,365 | $-32.4 \%$ |
| Depreciation, amortisation and impairment | $-6,675$ | $-7,101$ | $-13,414$ | $-14,226$ | $-5.7 \%$ |
| Results from fair value adjustments to investment property | $-6,238$ | 0 | $-6,238$ | 0 | $/$ |
| Earnings before interest and taxes (EBIT) | $-11,042$ | $-5,917$ | $-468$ | 14,139 | $-103.3 \%$ |
| Financial income | 3,183 | 3,183 | 7,459 | 5,401 | 38.1\% |
| Financial expenses | $-3,847$ | $-2,601$ | $-6,264$ | $-4,449$ | 40.8\% |
| Other financial result | 0 | $-878$ | 0 | $-722$ | $-100.0 \%$ |
| Result from currency translation | $-1,059$ | $-3,405$ | $-2,627$ | $-3,428$ | $-23.4 \%$ |
| Earnings before taxes (EBT) | $-12,765$ | $-9,618$ | $-1,900$ | 10,941 | $-117.4 \%$ |
| Income taxes | $-188$ | 2,917 | $-6,632$ | $-5,206$ | 27.4\% |
| Net profit/ loss for the period | $-12,953$ | $-6,701$ | $-8,532$ | 5,735 | $-248.8 \%$ |
| Attributable to shareholders of the parent company | $-8,378$ | $-6,411$ | $-3,760$ | 6,064 | $-162.0 \%$ |
| Attributable to non-controlling interests | $-4,574$ | $-291$ | $-4,773$ | $-329$ | $>1,000.0 \%$ |
| Earnings per share (undiluted) in EUR | $-0.10$ | $-0.07$ | $-0.04$ | 0.07 | $-161.7 \%$ |
| Earnings per share (diluted) in EUR | $-0.10$ | $-0.07$ | $-0.04$ | 0.07 | $-161.7 \%$ |
| The previous year figures were restated in line with the new table structure in the year under review. |
Consolidated statement of comprehensive income for the period from 1 January to 30 June 2024
| EUR k | 022024 | 022023 | H 12024 | H 12023 |
|---|---|---|---|---|
| Net profit/ loss for the period | $-12,953$ | $-6,701$ | $-8,532$ | 5,735 |
| Items of other comprehensive income with possible future reclassification to net profit/ loss for the period | ||||
| Profit/loss arising on the translation of the financial statements of foreign operations | 6,974 | 2,456 | $6,456$ | $-2,297$ |
| Items of other comprehensive income without future reclassification to net profit/ loss for the period | ||||
| Value adjustments resulting from equity instruments measured including capital gains (IFRS 9) | $-7,631$ | $-7,956$ | $-7,632$ | $-8,107$ |
| Value adjustments resulting from remeasurements of defined benefit plans (IAS 19) | 0 | 0 | 0 | 2 |
| Other comprehensive income | $-657$ | $-5,500$ | $-1,176$ | $-10,403$ |
| Total comprehensive income for the reporting period | $-13,609$ | $-12,201$ | $-9,708$ | $-4,668$ |
| Attributable to shareholders of the parent company | $-8,051$ | $-10,735$ | $-3,965$ | $-3,189$ |
| Attributable to non-controlling interests | $-5,559$ | $-1,466$ | $-5,743$ | $-1,479$ |
Consolidated cash flow statement
for the period from 1 January to 30 June 2024
| EUR k | H1 2024 | H1 2023 |
|---|---|---|
| Net profit/ loss for the period | $-8,532$ | 5,735 |
| Income taxes recognised through profit or loss | 6,632 | 5,206 |
| Financial expenses recognised through profit or loss | 6,264 | 4,449 |
| Financial income recognised through profit or loss | $-7,459$ | $-5,401$ |
| Income from participations through profit or loss | $-20,681$ | $-26,534$ |
| Earnings from companies accounted for using the equity method | 4,071 | 950 |
| Income from unrealised currency translation recognised through profit or loss | 2,742 | 1,609 |
| Unrealised other financial result | 0 | 711 |
| Income from the disposal of other intangible assets, software, rights of use and equipment recognised through profit or loss | 145 | $-9$ |
| Income from divestments of financial assets recognised through profit or loss | $-6$ | $-1,060$ |
| Depreciation, amortisation and impairment | 13,414 | 14,590 |
| Write-ups non-current assets | 0 | $-365$ |
| Results from fair value adjustments to investment property | 6,238 | 0 |
| Results from fair value adjustments to hedges | $-75$ | 0 |
| Expenses of the deconsolidation of subsidiaries | 0 | 3 |
| Income from the deconsolidation of subsidiaries | $-971$ | $-1,077$ |
| Other non-cash items | $-5,835$ | $-522$ |
| Changes in inventories, receivables and other assets that are not attributable to investment activities | 151 | 7,556 |
| Proceeds and payments from the temporarily consolidation of investment properties (Inventories) and related financing (Loans) for items in which the turnover is quick, the amounts are large, and the maturities are short | 0 | $-6,435$ |
| Changes in liabilities that are not attributable to financing activities | $-6,380$ | $-11,391$ |
| Distributed income from participations | 22,239 | 27,689 |
| Interest paid | $-6,746$ | $-5,587$ |
| Interest received | 7,031 | 5,169 |
| Income tax payments | $-9,633$ | $-4,231$ |
| Cash flow from operating activities | 2,609 | 11,055 |
| Payments for investments in other intangible assets, software and equipment | -15,319 | $-2,668$ |
|---|---|---|
| Payments received from the disposal of intangible assets and equipment | 60 | 248 |
| Payments for the development of investment property | $-14,230$ | 0 |
| Payments for the acquisition of securities and short-term investments | -25,219 | 0 |
| Payments received from the disposal of securities and short-term investments | 7 | 32,800 |
| Payments for the acquisition of participations | $-3,906$ | $-4,307$ |
| Payments received from the disposal of participations | 31 | 244 |
| Payments for investments in companies accounted for using the equity method | $-107,024$ | $-1,811$ |
| Payment received through distributions of companies accounted for using the equity method | 18 | 18 |
| Payments received from the disposal of companies accounted for using the equity method | 0 | 3,724 |
| Payments received from the repayment of loans to companies with participation interest | 0 | 482 |
| Payments for loans to companies with participation interest | $-700$ | 0 |
| Payments received from the repayment of other loans | 919 | 1,130 |
| Payments for other loans | $-95$ | $-25,583$ |
| Changes from hedges | 0 | 711 |
| Payments received from the disposal of consolidated companies and other business units | 0 | 1 |
| Payments for the disposal of consolidated companies and other business units | $-870$ | 0 |
| Payments for the acquisition of consolidated companies and other business units | $-2,423$ | $-2,616$ |
| Cash flow from investing/divesting activities | $-168,751$ | 2,371 |
| Borrowing of loans | 63,833 | 0 |
| Repayment of loans | $-89,000$ | 0 |
| Repayment of leasing liabilities | $-4,300$ | $-4,741$ |
| Interest paid | $-658$ | $-120$ |
| Cash received from the settlements of the derivative financial instruments used to hedge liabilities arising from financing activities | 114 | 0 |
| Cash paid due to the settlements of the derivative financial instruments used to hedge liabilities arising from financing activities | $-118$ | 0 |
| Payments for purchase of shares of non-controlling interests | 0 | $-16,803$ |
| Payments of profit shares to non-controlling interests | $-274$ | $-274$ |
| Payments of dividends to shareholders | $-29,318$ | $-28,288$ |
| Payments for buy-backs of own shares | 0 | $-7,445$ |
| Payments received from increase of capital stock (non-controlling interests) ${ }^{1}$ | 66,185 | 637 |
| Cash flow from financing activities | 6,464 | $-57,034$ |
| Change in cash and cash equivalents | $-159,678$ | $-43,608$ |
| Cash and cash equivalents as at 01.01 . | 340,181 | 349,518 |
| Effects of changes in foreign exchange rates on cash and cash equivalents | 538 | 422 |
| Cash and cash equivalents as at 30.06 . | 181,041 | 306,332 |
| ${ }^{1}$ Payments received from increase of capital stock in the amount of EUR 66.2 m relate to fundraising for temporarily consolidated funds (non-controlling interests). |
Consolidated statement of changes in equity
for the period from 1 January to 30 June 2023
| EUR k | Share capital | Capital reserve | Retained earnings (legal reserves) | Currency translation difference | Remeasurements of defined benefit plans according to IAS 19 | Revaluation reserve according to IFRS 9 | Consolidated unappropriated profit | Equity of the shareholders of the parent company | Equity of noncontrolling interests | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| As at 01.01.2023 | 86,175 | 67,181 | 505 | $-2,502$ | 4,807 | 189,691 | 913,132 | 1,258,989 | 66,346 | 1,325,336 |
| Net profit/ loss for the period | 0 | 0 | 0 | 0 | 0 | 0 | 6,064 | 6,064 | $-329$ | 5,735 |
| Other comprehensive income | 0 | $-0$ | 0 | $-2,366$ | 2 | $-6,889$ | 0 | $-9,253$ | $-1,150$ | $-10,403$ |
| Total comprehensive income | 0 | $-0$ | 0 | $-2,366$ | 2 | $-6,889$ | 6,064 | $-3,189$ | $-1,479$ | $-4,668$ |
| Capital increase | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 637 | 637 |
| Dividend distribution to shareholders in cash | 0 | 0 | 0 | 0 | 0 | 0 | $-28,288$ | $-28,288$ | 0 | $-28,288$ |
| Non-controlling interests arising from the sale of shares | 0 | 0 | 0 | 0 | 0 | 0 | 838 | 838 | $-838$ | 0 |
| Purchases of shares of non-controlling interests | 0 | 0 | 0 | $-1$ | 0 | 16,309 | $-16,804$ | $-495$ | $-16,308$ | $-16,803$ |
| Payout of profit shares to non-controlling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $-274$ | $-274$ |
| Reclassification | 0 | 0 | 0 | 0 | 0 | 0 | 440 | 440 | $-440$ | 0 |
| Other changes | 0 | 0 | 0 | 0 | 0 | 0 | $-923$ | $-923$ | 0 | $-923$ |
| Share buy-back | $-655$ | $-6,789$ | 0 | 0 | 0 | 0 | 0 | $-7,444$ | 0 | $-7,444$ |
| Disposal of shares | 283 | 2,263 | 0 | 0 | 0 | 0 | 0 | 2,545 | 0 | 2,545 |
| As at 30.06.2023 | 85,803 | 62,655 | 505 | $-4,869$ | 4,809 | 199,112 | 874,459 | 1,222,474 | 47,645 | 1,270,119 |
Consolidated statement of changes in equity
for the period from 1 January to 30 June 2024
| EUR k | Share capital | Capital reserve | Retained earnings (legal reserves) | Currency translation difference | Remeasurements of defined benefit plans according to IAS 19 | Revaluation reserve according to IFRS 9 | Consolidated unappropriated profit | Equity of the shareholders of the parent company | Equity of non-controlling interests | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| As at 01.01.2024 | 85,844 | 65,704 | 505 | $-3,853$ | 2,943 | 130,660 | 874,429 | 1,156,232 | 39,553 | 1,195,785 |
| Net profit/ loss for the period | 0 | 0 | 0 | 0 | 0 | 0 | $-3,760$ | $-3,760$ | $-4,773$ | $-8,532$ |
| Other comprehensive income | 0 | 0 | 0 | 6,434 | 0 | $-6,639$ | 0 | $-205$ | $-971$ | $-1,176$ |
| Total comprehensive income | 0 | 0 | 0 | 6,434 | 0 | $-6,639$ | $-3,760$ | $-3,965$ | $-5,743$ | $-9,708$ |
| Disposal group ${ }^{1}$ | 0 | 0 | 0 | 14 | 0 | 0 | 0 | 14 | $-24,056$ | $-24,042$ |
| Capital increase | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 66,185 | 66,185 |
| Dividend distribution to shareholders in cash | 0 | 0 | 0 | 0 | 0 | 0 | $-29,318$ | $-29,318$ | 0 | $-29,318$ |
| Non-controlling interests arising from the sale of shares | 0 | 0 | 0 | 0 | 0 | 0 | 802 | 802 | $-802$ | 0 |
| Payout of profit shares to non-controlling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $-274$ | $-274$ |
| Other changes | 0 | 0 | 0 | 1,091 | 0 | 0 | $-955$ | 135 | 0 | 135 |
| Disposal of shares | 384 | 2,682 | 0 | 0 | 0 | 0 | 0 | 3,067 | 0 | 3,067 |
| As at 30.06.2024 | 86,229 | 68,386 | 505 | 3,686 | 2,943 | 124,021 | 841,198 | 1,126,967 | 74,863 | 1,201,831 |
[^0]
[^0]: *The decrease in equity attributable to non-controlling interests of EUR 24.1m relates to the deconsolidation of a temporarily consolidated fund.
Notes to the interim consolidated financial statements
for the period from 1 January to 30 June 2024
General information
PATRIZIA SE (hereinafter also referred to as PATRIZIA or the Group) is a listed stock corporation. The registered office of the company is Fuggerstraße 26, 86150 Augsburg (Augsburg Local Court, HRB 37716).
PATRIZIA is a leading partner for global real assets and one of the leading independent real estate investment companies in Europe. As at 30 June 2024, 910 employees (FTE) serve its clients across 27 locations worldwide. PATRIZIA provides a wide range of services from asset and portfolio management and implementation of purchase and sales transactions for almost all real estate and infrastructure classes to alternative investments and project developments. Its clients include institutional, (semi-)professional and private investors such as insurance firms, pension providers and sovereign wealth funds from Germany, Europe, the US and Asia. PATRIZIA develops bespoke products for its clients in line with their individual return expectations, diversification objectives and risk styles.
1 Principles applied in the preparation of the interim consolidated financial statements
The unaudited interim consolidated financial statements of PATRIZIA for the first half of 2024 (1 January to 30 June 2024) have been prepared in accordance with § 115 of the German Securities Trading Act (WpHG) in compliance with IAS 34 "Interim Financial Reporting" and the IFRS as well as in compliance with the supplementary commercial law regulations to be applied in accordance with § 315e of the Handelsgesetzbuch (HGB - German Commercial Code). All mandatory pronouncements of the International Accounting Standards Board (IASB) that were adopted by the EU as part of the endorsement process, i.e. published in the Official Journal of the EU (by the balance sheet date) have been applied.
As part of the preparation of the consolidated interim financial statements for the interim report in accordance with IAS 34 "Interim Financial Reporting", the management of PATRIZIA must make assessments and estimates as well as assumptions that influence the application of accounting principles in the Group and the reporting of assets and liabilities as well as income and expenses. The actual amounts may differ from these estimates.
These interim consolidated financial statements are fundamentally based on the accounting policies as those applied to the consolidated financial statements for the 2023 financial year. A detailed description of the basis of preparation of the consolidated financial statements and the accounting policies can be found in the IFRS notes to the consolidated financial statements as at 31 December 2023 in the 2023 PATRIZIA Group Annual Report.
New standards and interpretations to be applied as of 1 January 2024 have no material impact on the interim consolidated financial statements.
These interim financial statements are prepared in Euro (EUR). Unless otherwise stated, the amounts including the previous year figures are shown in thousands of Euros (EUR k). It should be noted that differences may occur in the use of rounded amounts and percentages due to commercial rounding.
2 Consolidated group
The consolidated financial statements of PATRIZIA SE include the financial statements of the parent company and 134 (31 December 2023: 142) subsidiaries. Subsidiaries are directly or indirectly controlled by the parent company and are included in the consolidated financial statements in accordance with the rules of full consolidation. In addition, eight (31 December 2023: six) investments are accounted for in the consolidated financial statements using the equity method (see Chapter 3.4).
The reporting dates of the subsidiaries included in the consolidated financial statements correspond to the reporting date of the parent company.
As at 30 June 202445 (31 December 2023: 45) companies are not included in the scope of consolidation as they have only minor or no business operations and are of minor importance for the Group and for the presentation of a true and fair view of the results of operations, financial position and net assets.
Change in scope of consolidation
The number of Group companies included in the consolidated financial statements developed as follows in the reporting period:
Subsidiaries
| As at 01.01.2024 | 142 |
|---|---|
| Companies acquired | 2 |
| Companies founded | 0 |
| Reclassifications | -1 |
| Mergers | -6 |
| Companies deconsolidated | -3 |
| As at 30.06.2024 | 134 |
The addition to the scope of consolidation through acquisitions was mainly due to the acquisition of a temporarily consolidated infrastructure fund in the form of an acquisition of shares by a controlled fund.
In the reporting period, the Group lost control of one subsidiary and reclassified it as a joint venture.
The mergers were carried out to streamline the legal structure of the Group and had no impact on PATRIZIA's consolidated financial statements.
In the course of ordinary business activities, the Group lost control over two subsidiaries and recognised deconsolidation income of EUR 971 k in the income statement.
Consolidation methods
These interim consolidated financial statements are generally based on the same consolidation methods that were applied to the consolidated financial statements for the 2023 financial year. A detailed description of the basis for preparing the consolidated financial statements and the accounting and valuation methods can be found in the IFRS Notes to the Consolidated Financial Statements as at 31 December 2023.
3 Notes to the balance sheet and income statement
3.1 Financial instruments
3.1.1 Classification and measurement of financial assets and liabilities
The table below shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Carrying amounts are classified as follows: at fair values through profit and loss (FVTPL), at fair value through other comprehensive income (FVTOCI) and at amortised cost (AC). Non-derivative financial instruments are generally recognised for the first time on settlement date and derivative financial instruments on trade date.
Financial assets and liabilities 30.06.2024
| Carrying amounts | Fair value | |||||
|---|---|---|---|---|---|---|
| EUR k | FVTPL | FVTOCI | AC | Level 1 | Level 2 | Level 3 |
| Financial assets | ||||||
| Participations | 587,654 | 587,654 | ||||
| Other non-current financial assets (FVTPL) | 10,906 | 10,906 | ||||
| Other non-current financial assets (AC) | 19,462 | 20,972 | ||||
| Current receivables and other current financial assets ${ }^{1}$ | 169,018 | |||||
| Cash and cash equivalents ${ }^{1}$ | 181,041 | |||||
| Total | 10,906 | 587,654 | 369,520 | 0 | 0 | 619,532 |
| Financial liabilities | ||||||
| Non-current bank loans | 180,935 | 182,822 | ||||
| Current bank loans ${ }^{1}$ | 46,828 | |||||
| Non-current bonded loans | 69,000 | 66,257 | ||||
| Non-current financial liabilities | 53,260 | 52,017 | ||||
| Current financial liabilities ${ }^{1}$ | 185,332 | |||||
| Current derivative financial instruments | 222 | 222 | ||||
| Non-current lease liabilities ${ }^{1}$ | 41,568 | |||||
| Current lease liabilities ${ }^{1}$ | 8,765 | |||||
| Total | 222 | 0 | 585,689 | 0 | 222 | 301,097 |
[^0]
[^0]: ${ }^{1}$ According to IFRS 7.29 no disclosure of fair values.
Financial assets and liabilities 31.12.2023
| Carrying amounts | Fair value | |||||
|---|---|---|---|---|---|---|
| EUR k | FVTPL | FVTOCI | AC | Level 1 | Level 2 | Level 3 |
| Financial assets | ||||||
| Participations | 594,686 | 594,686 | ||||
| Other non-current financial assets (FVTPL) | 10,203 | 10,203 | ||||
| Other non-current financial assets (AC) | 41,146 | 42,365 | ||||
| Current receivables and other current financial assets ${ }^{1}$ | 150,202 | |||||
| Cash and cash equivalents ${ }^{1}$ | 340,181 | |||||
| Total | 10,203 | 594,686 | 531,529 | 0 | 0 | 647,254 |
| Financial liabilities | ||||||
| Non-current bank loans | 164,571 | 166,228 | ||||
| Non-current bonded loans | 69,000 | 66,047 | ||||
| Current bonded loans ${ }^{1}$ | 89,000 | |||||
| Non-current financial liabilities | 149,912 | 123,597 | ||||
| Current financial liabilities ${ }^{1}$ | 102,945 | |||||
| Current derivative financial instruments | 297 | 297 | ||||
| Non-current lease liabilities ${ }^{1}$ | 43,020 | |||||
| Current lease liabilities ${ }^{1}$ | 10,324 | |||||
| Total | 297 | 0 | 628,772 | 0 | 297 | 355,872 |
| ${ }^{1}$ According to IFRS 7.29 no disclosure of fair values. |
The fair values of the Group's financial instruments measured at amortised cost are determined by using the discounted cashflow method, based on a risk-adjusted discounted interest rate. The own non-performance risk as at 30 June 2024 was classified as insignificant.
3.1.2 Participations
Participations showed the following development in the business year:
Participations
PATRIZIA selectively invests Group equity in partnerships with its institutional clients, in the form of co-investments, of which Dawonia GmbH is the largest co-investment. In addition, PATRIZIA uses equity to temporarily consolidate assets and portfolios with the aim of later contributing them to funds financed by clients.
PATRIZIA holds a stake in a very attractive residential real estate portfolio via Dawonia GmbH. With around 27,000 flats, Dawonia is one of the largest housing companies in Munich and southern Germany. For 80 years, Dawonia has been planning, developing, building and managing high-quality, affordable apartments which are in high demand, particularly in urban growth regions. The company therefore is very well positioned in this market segment. Around $80 \%$ of the housing stock is concentrated in the 20 largest locations in southern Germany, i.e. in conurbations such as Munich and the surrounding area, as well as Nuremberg, Erlangen, Regensburg and Würzburg. Dawonia is now also active outside Bavaria, for example in Hessen.
Furthermore, PATRIZIA holds an interest in OSCAR Lux Carry SCS (Dawonia profit entitlements - see table above), which entitles PATRIZIA to a variable profit share in connection with the Dawonia investment. The initial 10-year investment phase of the fund has been temporarily extended beyond 2023 in close alignment with all investors. PATRIZIA is in constructive discussions with investors in Dawonia about a long-term extension of the investment mandate.
Result from participations
The result from participations of EUR 20,681k in the reporting period (H1 2023: EUR 26,534k) stems mainly from the participations in Dawonia.
3.1.3 Determination of fair values of Level 3 financial assets
The following tables show the valuation techniques used to assess level 3 fair values and the significant unobservable inputs used.
Valuation technique fair value
| Type | Valuation technique | Important non-observable input factors | Context between Important nonobservable input factors and the valuation at fair value |
|---|---|---|---|
| Participations | Valuation model considers the individual shares of participations as well as assessment basis in particularly the fair value of the net assets (Net asset value). The essential value driver is the respective Fair Value of the contained property assets. | Shares of participations ( $0.01 \%$ 100\%) - important assessment basis: the fair value of the net assets 2024 of the participations (EUR 0m - EUR 3,179m) | Estimated fair value would increase (decrease) if the assessment basis increase (decrease) |
| Other financial assets (FVTPL) | Since these are convertible loans, the valuation model considers the fair value of the net assets of the borrowers. | Fair value of the net assets 2024: (EUR 0.7m - EUR 7.5m) | Estimated fair value would increase (decrease) if the assessment basis increase (decrease) |
For participations, a 10\% increase (decrease) in the respective measurement bases, with the other inputs held constant, would result in an increase (decrease) in fair value of EUR 75, 151 k (31. December 2023: EUR 75,869k).
In the case of other non-current financial assets, a 10\% increase (decrease) in net assets would lead to an increase (decrease) in fair value of EUR 838k (31. December 2023: EUR 838k). The fixed-rate coupons of the convertible loans have no material effect on the valuation.
The table below shows the reconciliation of the opening balance to the closing balance of Level 3 fair values.
Reconciliation of level 3 fair values - 30.06 .2024
| EUR k | Participations | Other non-current financial assets (FVTPL) |
|---|---|---|
| As at 01.01. | 594,686 | 10,203 |
| Profit/loss, including in the other comprehensive income (IFRS 9) changes of the fair value | ||
| Additions in the financial year | $-8,619$ | 0 |
| Disposals in the financial year | 3,906 | 776 |
| $\begin{aligned} & \text { Disposals in the financial year } \ & \text { Changes in the consolidated group } \end{aligned}$ | $\begin{array}{r} -31 \ -2,833 \ \hline \end{array}$ | $\begin{array}{r} -83 \ 0 \end{array}$ |
| Foreign exchange differences | 563 | 0 |
| Distribution | $-18$ | 0 |
| Reclassification | 0 | 10 |
| Closing balance | 587,654 | 10,906 |
Reconciliation of level 3 fair values - 31.12 .2023
| EUR k | Participations | Other non-current financial assets (FVTPL) |
|---|---|---|
| As at 01.01. | 664,612 | 10,020 |
| Profit/loss, including in the other comprehensive income (IFRS 9) | ||
| changes of the fair value | $-86,031$ | $-677$ |
| Additions in the financial year | 16,946 | 860 |
| Disposals in the financial year | $-1,236$ | 0 |
| Foreign exchange differences | 412 | 0 |
| Distribution | $-18$ | 0 |
| Closing balance | 594,686 | 10,203 |
Dividend income from participations amounted to EUR 20,681k in the financial year (H1 2023 EUR 26,534k). The dividends received result exclusively from participations still held at the end of the reporting period. The fair value of participations disposed of as at the date of disposal is EUR 31k (31 December 2023 EUR 1,236k).
3.1.4 Cash and cash equivalents
As of the reporting date the Group has EUR 181,041k of cash and cash equivalents (31 December 2023: EUR 340,181k). Regulatory reserve for asset management companies as a part of cash and cash equivalents amount to EUR 47,385k (31 December 2023: EUR 47,190k).
Please refer to the statement of cash flow for further information on changes in cash and cash equivalents of the first half-year 2024.
3.1.5 Bank loans
The Group's bank loans as at 30 June 2024 amount to EUR 227,763k (31 December 2023: EUR 164,571k). The addition of EUR 46,828k of the current loans is due to a bridge financing that was taken out by a temporary consolidated fund to acquire a participation. Non-current bank loans as at 30 June 2024 in the amount to EUR 180,935k (31 December 2023: EUR $164,571 \mathrm{k}$ ) are mainly for real estates that are part of temporary consolidated funds.
3.1.6 Bonded loans
The outstanding tranche of the bonded loan taken in 2017 financial year in the amount of EUR 69,000k will mature in 2027 and is presented accordingly as non-current bonded loans. The tranche in the amount of EUR 89,000k, that matured in 2024 was repaid as scheduled in May 2024.
3.2 Goodwill
Goodwill amounts to EUR 379,797k as at 30 June 2024 (31 December 2023: EUR 376,719k). The change in goodwill compared to 31 December 2023 is due to the exchange rate changes of EUR 3,078k (31 December 2023 EUR -4,854k). These are mainly due to the exchange rate development of the British pound and the Australian dollar.
These values are tested for impairment at least once a year by the Group as part of an impairment test in accordance with IAS 36. As at 30 June 2024, there were no events that would justify further impairment test and the resulting need for impairment.
3.3 Other intangible assets
Other intangible assets amount to EUR 84,882k at the reporting date (31 December 2023: EUR 89,320k). The decrease results mainly from the current year amortisation of the fund management contracts.
In the first half of 2024 the current year amortisation of the fund management contracts totals EUR 4,798k (H1 2023: EUR 6.339 k ), on licenses of EUR 17k, (H1 2023: EUR 17k) and on other rights and assets EUR 21k (H1 2023: 27k).
The positive currency effects of EUR 398k (31 December 2023 EUR -314k) mainly stem from the currency translation of the fund management contracts. These foreign currency changes can be mainly explained by the fluctuation of the British Pound.
3.4 Participations in companies accounted for using the equity method
The carrying amount of the participations in companies accounted for using the equity method amounts to EUR 143,390k (31 December 2023: 40,412k). The increase is mainly due to the indirect acquisition of the $29.8 \%$ stake in the Italian waste disposal company Greenthesis S.p.A. by a temporarily consolidated infrastructure fund.
3.5 Investment property
The investment properties are as follows as at the balance sheet date:
| Investment property - 30.06 .2024 | ||
|---|---|---|
| EUR k | 2024 | 2023 |
| As at 01.01 | $\mathbf{2 4 6 , 4 8 1}$ | $\mathbf{1 , 8 9 2}$ |
| Addition | 14,230 | 0 |
| Addition Group | 0 | 47,841 |
| Reclassification of inventories | 0 | 191,668 |
| Changes in market value | $\mathbf{- 6 , 2 3 8}$ | 1,529 |
| Foreign exchange differences | $\mathbf{2 5 3 , 2 5 1}$ | $\mathbf{3 , 5 5 1}$ |
| Closing balance | $\mathbf{2 4 6 , 4 8 1}$ |
The investment properties primarily represent property portfolios over which the Group has gained control during its ordinary business activities as an investment manager.
The fair value changed by EUR -6.238 k in the financial year (H1 2023: EUR Ok) and was recognised in the consolidated income statement.
The table below provides an overview of the types of use of investment property and the underlying valuation techniques.
The following table shows the reconciliation of the opening balance to the closing level 3 fair value by type of use for the first half of 2024 financial year.
Reconciliation of level 3 fair values - 30.06.2024
| EUR k | Residential real estate | Residential real estate in development | Office and commercial real estate | Logistics real estate |
|---|---|---|---|---|
| As at 01.01 | 2,152 | 108,058 | 83,610 | 52,661 |
| Addition | 0 | 14,230 | 0 | 0 |
| Changes in market value | 0 | $-5,368$ | $-870$ | 0 |
| Foreign exchange differences | 0 | 0 | 0 | $-1,222$ |
| Closing balance | 2,152 | 116,920 | 82,740 | 51,439 |
| EUR k | Residential real estate | Residential real estate in development | Office and commercial real estate | Logistics real estate |
|---|---|---|---|---|
| As at 01.01 | 1,892 | 0 | 0 | 0 |
| Addition Group | 0 | 0 | 0 | 47,841 |
| Reclassification of inventories | 0 | 108,058 | 83,610 | 0 |
| Changes in market value | 260 | 0 | 0 | 1,268 |
| Foreign exchange differences | 0 | 0 | 0 | 3,551 |
| Closing balance | 2,152 | 108,058 | 83,610 | 52,661 |
3.6 Equity
We refer to the statement of changes in equity for information on changes in equity.
Share capital
The share capital of the company amounts, after offsetting treasury shares in the amount of EUR 6,123k or 6,122,608 no-parvalue shares ( 31 December 2023: EUR 6,507k), to EUR 86,229k (31 December2023: EUR 85,844k) as at the end of the reporting period and was divided into $86,228,868$ no-par-value registered shares.
Capital reserves
The capital reserves increased by EUR 2,682k from EUR 65,704k to EUR 68,386k as at 30 June 2024. The increase in capital reserves results from the issue of shares for the repayment of a purchase price liability as part of the business combination Whitehelm.
Treasury shares
In the reporting period the total number of treasury shares decreased to $6,122,608$ and their total value up to EUR 98,561k.
Treasury shares - 30.06.2024
| Number of shares | Price per share in EUR ${ }^{1}$ | Total Value in EUR | |
|---|---|---|---|
| As at 01.01. | 6,507,043 | 101,859,064 | |
| Disposal and transfer of shares | $-384,435$ | 8.58 | $-3,298,452$ |
| Closing balance ${ }^{2}$ | 6,122,608 | 98,560,612 | |
| ${ }^{1}$ Average price per share in EUR from several share purchases/ sales (incl. transaction costs) ${ }^{2}$ The total value of treasury shares is calculated by adding up all share buyback programmes up to the current reporting date, less all sales of treasury shares in the context of purchase price payments of M\&A transactions |
Non-controlling interests
There were non-controlling interests of EUR 74,863k as at 30 June 2024 (31 December 2023: EUR 39,553k).
A profit share of EUR $-4,773 \mathrm{k}$ (H1 2023: EUR -329k) was allocated to non-controlling interests during the reporting period.
As at 30 June 2024, profit shares of EUR 274k (H1 2023: EUR 274k) had been withdrawn by non-controlling interests.
3.7 Income taxes
The income tax liabilities essentially comprise EUR 6,333k (31 December 2023: EUR 8,876k) of corporation and trade tax on the profits of German and non-German subsidiaries.
The tax rate (income taxes in relation to EBT) was $-349,1 \%$ in the reporting period (H1 2023: 47.6\%). Due to the lack of offsetting options when calculating income taxes and the non-capitalisation of deferred tax assets on current losses, the Group recognised income taxes of EUR $-6,632 \mathrm{k}$ in the reporting period despite negative earnings before taxes (H1 2023: EUR 5,206k).
3.8 Other provisions
The carrying amount of other provisions amounts to EUR 25,706k as at 30 June 2024 (31 December 2023: EUR 32,004k). The decrease is mostly due to the utilization of the reorganisation costs in the amount of EUR 9,132k which were recognised in relation to the cost base review in 2023. In contrast, a provision for an indemnity in the amount of EUR 3,664k was recognised. The Group expects that a tax-related penalty of a PATRIZIA managed fund will lead to a claim against PATRIZIA Group as investment manager.
3.9 Revenues
Revenues by Country
| EUR k | Germany | Luxembourg | United Kingdom | Rest of world | Total |
|---|---|---|---|---|---|
| Q2 2024 | |||||
| Revenues from management services | 39,344 | 11,340 | 5,581 | 6,479 | 62,745 |
| Management fees | 36,124 | 8,446 | 4,784 | 6,414 | 55,768 |
| Performance fees | 1,740 | 62 | 430 | 0 | 2,232 |
| Transaction fees | 1,479 | 2,833 | 367 | 65 | 4,745 |
| Rental revenues | 165 | 1,019 | 0 | 893 | 2,078 |
| Revenues from ancillary costs | 14 | 1 | 0 | 62 | 76 |
| Other | 84 | 39 | 122 | 471 | 715 |
| Revenues | 39,607 | 12,399 | 5,703 | 7,905 | 65,614 |
| Q2 2023 | |||||
| Revenues from management services | 41,317 | 9,300 | 9,393 | 5,789 | 65,799 |
| Management fees | 33,710 | 9,412 | 7,307 | 5,649 | 56,078 |
| Performance fees | 6,790 | $-112$ | 0 | 9 | 6,687 |
| Transaction fees | 817 | 0 | 2,086 | 131 | 3,033 |
| Rental revenues | 95 | 945 | 0 | 0 | 1,040 |
| Revenues from ancillary costs | 13 | 0 | 0 | 0 | 13 |
| Other | 33 | 424 | 150 | 477 | 1,083 |
| Revenues | 41,457 | 10,669 | 9,543 | 6,266 | 67,935 |
| H1 2024 | |||||
| Revenues from management services | 71,234 | 23,202 | 11,459 | 12,307 | 118,202 |
| Management fees | 68,024 | 20,399 | 10,897 | 12,241 | 111,561 |
| Performance fees | 1,731 | $-200$ | 208 | 0 | 1,738 |
| Transaction fees | 1,479 | 3,003 | 355 | 65 | 4,903 |
| Proceeds from the sale of principal | |||||
| investments | 5 | 0 | 0 | 0 | 5 |
| Rental revenues | 315 | 1,822 | 0 | 1,769 | 3,906 |
| Revenues from ancillary costs | 40 | 2 | 0 | 112 | 154 |
| Other | 114 | 118 | 432 | 667 | 1,330 |
| Revenues | 71,708 | 25,143 | 11,891 | 14,855 | 123,597 |
| H1 2023 | |||||
| Revenues from management services | 76,998 | 20,744 | 17,947 | 11,597 | 127,287 |
| Management fees | 68,497 | 20,338 | 15,862 | 11,314 | 116,011 |
| Performance fees | 6,801 | 362 | 0 | 9 | 7,172 |
| Transaction fees | 1,701 | 45 | 2,084 | 274 | 4,103 |
| Rental revenues | 193 | 1,697 | 0 | $-0$ | 1,890 |
| Revenues from ancillary costs | 30 | 13 | 0 | 0 | 43 |
| Other | 65 | 544 | 371 | 598 | 1,578 |
| Revenues | 77,286 | 22,998 | 18,318 | 12,195 | 130,797 |
The geographical allocation is based on the registered office of the unit performing the services.
Revenue is measured on the basis of the consideration specified in a contract with a customer. The Group recognises revenue when it transfers control of a good or service to a customer.
The distribution of revenue from contracts with customers with regard of timing of revenue recognition is as follows:
Revenues from contracts with clients
| EUR k | ||||
|---|---|---|---|---|
| Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | |
| Transferred products/services at a period of time | 6,977 | 9,720 | 6,645 | 11,276 |
| Transferred products/services over a period of time | 56,559 | 57,175 | 113,045 | 117,631 |
| Revenues from client contracts | 63,536 | 66,895 | 119,691 | 128,907 |
3.10 Earnings per share
Earnings per share
| EUR k | H1 2024 | H1 2023 |
|---|---|---|
| Share of earnings attributable to shareholders of the Group | $-3,760$ | 6,064 |
| Number of shares ${ }^{1}$ | 86,228,868 | 85,720,791 |
| Weighted number of shares undiluted ${ }^{1}$ | 86,111,500 | 85,695,240 |
| Earnings per share (undiluted) in EUR | $-0.04$ | 0.07 |
| Weighted number of shares diluted ${ }^{2}$ | 86,111,500 | 85,695,240 |
| Earnings per share (diluted) in EUR ${ }^{3}$ | $-0.04$ | 0.07 |
| ${ }^{1}$ Pending after share bus | ||
| Share-based payment, if served by newly iss |
4 Segment reporting
Segment reporting categorises the segments according to whether PATRIZIA acts as a service provider or an investor. In line with the Group's reporting for management purposes and in accordance with the definition of IFRS 8 "Operating Segments", two segments have been identified based on functional criteria: Investments and Management Services.
The Investments segment bundles principal investments and participations.
The Management Services segment covers a broad range of real assets services such as the acquisition and sale of residential and commercial properties or portfolios (acquisitions and disposals), value-oriented property management (asset management), strategic consulting on investment strategy, portfolio planning and allocation (portfolio management) and the execution of complex, non-standard investments (alternative investments). Through the Group's own asset management companies special funds are also set up and managed according to individual client requests. The service fee income generated from both co-investments and third-party business is reported in the Management Services segment. This also includes income from participations that takes the form of services rendered as a shareholder contribution for the asset management of the co-investment Dawonia GmbH.
Internal controlling and reporting within PATRIZIA Group is based on IFRS principles. The Group measures the success of its segments using segment earnings indicators, which are referred to for the purpose of internal controlling and reporting as EBITDA.
Segment EBITDA is the net total of revenues, income from the sale of investment property, changes in inventories, the result from the deconsolidation of subsidiaries, the cost of materials and staff costs, the cost of purchased services, other operating income and expenses, reorganisation income and expenses as well as net income from participations.
Revenues are generated between reportable segments. These intragroup transactions are settled at market prices.
All relevant consolidation matters to be eliminated, such as intercompany sales, intercompany results and the reversal of intercompany eliminations, take place within the segments.
As in the previous year, non-current assets are mainly held in Germany.
Non-current assets do not include financial investments and deferred tax assets.
Segment information is calculated in line with the accounting policies applied when preparing the consolidated financial statements.
The individual operating segments are set out below. The reporting of amounts in thousands of Euros (EUR k) may result in rounding differences based on the unrounded figures.
| EUR k | Investments | Management Services | Group |
|---|---|---|---|
| Revenues | 3,617 | 119,980 | 123,597 |
| Other operating income | 442 | 9,349 | 9,791 |
| Total operating performance | 4,059 | 129,329 | 133,387 |
| Cost of materials | $-228$ | $-24$ | $-252$ |
| Cost of purchased services | $-79$ | $-8,296$ | $-8,375$ |
| Staff costs | $-5$ | $-83,641$ | $-83,646$ |
| Other operating expenses | $-2,827$ | $-34,703$ | $-37,531$ |
| Impairment result for trade receivables and contract assets | $-0$ | $-22$ | $-22$ |
| Result from participations | 1,623 | 19,059 | 20,681 |
| Earnings from companies accounted for using the equity method | $-4,186$ | 115 | $-4,071$ |
| EBITDAR | $-1,645$ | 21,815 | 20,171 |
| Reorganisation income | 0 | 111 | 111 |
| Reorganisation expenses | 0 | $-1,098$ | $-1,098$ |
| EBITDA | $-1,645$ | 20,828 | 19,184 |
| Depreciation, amortisation and impairment | 0 | $-13,414$ | $-13,414$ |
| Results from fair value adjustments to investment property | $-6,238$ | 0 | $-6,238$ |
| Earnings before interests and taxes (EBIT) | $-7,883$ | 7,415 | $-468$ |
| Finance income | 2,768 | 4,691 | 7,459 |
| Finance costs | $-3,484$ | $-2,780$ | $-6,264$ |
| Result from currency translation | $-198$ | $-2,429$ | $-2,627$ |
| Earnings before taxes (EBT) | $-8,796$ | 6,896 | $-1,900$ |
| Income tax | $-173$ | $-6,460$ | $-6,632$ |
| Net profit/ loss for the period | $-8,969$ | 436 | $-8,532$ |
| EUR k | Investments | Management Services | Group |
|---|---|---|---|
| Revenues | 74 | 130,724 | 130,797 |
| Other operating income ${ }^{1}$ | 2,176 | 3,002 | 5,177 |
| Total operating performance | 2,249 | 133,725 | 135,975 |
| Cost of materials | $-29$ | $-89$ | $-118$ |
| Cost of purchased services | 0 | $-8,541$ | $-8,541$ |
| Staff costs | $-4$ | $-85,785$ | $-85,789$ |
| Other operating expenses ${ }^{1}$ | $-2,101$ | $-36,336$ | $-38,436$ |
| Impairment result for trade receivables and contract assets | $-49$ | $-4$ | $-53$ |
| Result from participations | 1,705 | 24,829 | 26,534 |
| Earnings from companies accounted for using the equity method | $-612$ | $-337$ | $-950$ |
| EBITDAR | 1,160 | 27,462 | 28,622 |
| Reorganisation income | 0 | 54 | 54 |
| Reorganisation expenses | 0 | $-311$ | $-311$ |
| EBITDA | 1,160 | 27,205 | 28,365 |
| Depreciation, amortisation and impairment | 115 | $-14,341$ | $-14,226$ |
| Earnings before interests and taxes (EBIT) | 1,275 | 12,864 | 14,139 |
| Finance income | 130 | 5,271 | 5,401 |
| Finance costs | $-625$ | $-3,824$ | $-4,449$ |
| Other financial result | 0 | $-722$ | $-722$ |
| Result from currency translation | $-16$ | $-3,413$ | $-3,428$ |
| Earnings before taxes (EBT) | 765 | 10,176 | 10,941 |
| Income tax | $-443$ | $-4,763$ | $-5,206$ |
| Net profit/ loss for the period | 322 | 5,413 | 5,735 |
| ${ }^{1}$ The previous year figures were restated in line with the new table structure in the year under review. |
5 Information on the consolidated cash flow statement
The consolidated cash flow statement was prepared in accordance with the provisions of IAS 7.
In the consolidated cash flow statement, cash flows are presented according to the cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. In principle, the derivation of these cashflows remains valid as shown in the 2023 Group Annual Report.
The amounts shown in the consolidated cash flow statement correspond only partially to the changes in the statement of financial positions observable from one reporting period to the next, as they do not take into account non-cash items such as changes in exchange rates or changes in the scope of consolidation.
6 Other explanations
6.1 Related party transactions
With effect from the 2024 Annual General Meeting, the composition of the management in key positions has changed as follows: Dr Asoka Wöhrmann was elected to the Board of Directors of PATRIZIA SE in addition to his role as Executive Director and CEO of PATRIZIA SE. The terms of office of Axel Hefer, Marie Lalleman and Philippe Vimard as members of the Board of Directors ended with the Annual General Meeting.
Otherwise, the presentation of related party transactions under 7.2 of the notes to the consolidated financial statements in the PATRIZIA Annual Report 2023 remains valid.
In addition, the legal representatives are not aware of any circumstances, contracts or legal transactions with affiliated or related parties for which the company does not receive fair and appropriate consideration. All business relationships are in line with standard market conditions and do not fundamentally differ from the trade relationships with other persons or companies.
6.2 Contingent liabilities and contractual payment obligations
As at the balance sheet date, PATRIZIA has contingent liabilities from obligations to make additional financial contributions to participations amounting to EUR 34,531k (31 December 2023: EUR 100,786k) in relation to participations and participations in companies accounted for using the equity method. These are capital calls that the management of the respective companies can make as needed without further consent of PATRIZIA. There are also contractual payment obligations from pending transactions in the amount of EUR 11,538k (31 December 2023: EUR 25,961k). Furthermore, the Group could also be held liable for a tax issue in the amount of EUR 8,400k that concerns a PATRIZIA managed fund.
6.3 Events after the end of the reporting period
On 26 July 2024, PATRIZIA has announced a new mid-term strategy with the ambition to reach EUR 100bn AUM by 2030. The Company's clear ambition is to become the go-to manager for smart Real Asset solutions by focusing on five key growth areas: Living, Value-add Strategies, Re-Infra \& Smart City Solutions, European Infrastructure, and its Independent Advantage Investment Partners (fund of funds) platform. PATRIZIA will leverage its strong position in Germany with attractive real asset offerings and continue to grow internationally with a focus on its large scalable discretionary flagship funds in real estate and infrastructure alongside creating a new "Re-Infra" asset class that combines the two.
To effectively execute on its new mid-term strategy PATRIZIA has established a new Group Executive Committee (GEC) as part of a larger organisational adjustment. The GEC replaces the previous Executive Committee, effective 1 August 2024. Sitting directly under the Board of Directors, the GEC consists of six Executive Directors. Alongside the three existing Executive Directors which are Dr Asoka Wöhrmann (CEO), Christoph Glaser (currently CFO/COO) and Wolfgang Egger (Founder) - Martin Praum, James Muir, and Dr Konrad Finkenzeller have been appointed as additional Executive Directors and members of the GEC by the Board of Directors.
Martin Praum has been appointed Chief Financial Officer (CFO) and is responsible for Finance, Investor Relations \& Group Reporting, and the Group's Corporate Finance activities. In this position, he succeeds Christoph Glaser who focuses on his role as Chief Operating Officer (COO), with responsibility for IT, Fund Services \& Operations, Valuation, Procurement \& Services, Compliance \& Risk Management.
James Muir has been appointed Head of the Investment Division, a newly formed department which is responsible for Fund Management, Investment Management, and Investment Strategy \& Research across all asset classes of PATRIZIA.
Dr Konrad Finkenzeller heads the newly formed Client Division (subject to BaFin approval) and is responsible for global fundraising activities and client relationship management, PATRIZIA's product portfolio across all asset classes, client services, and corporate and product marketing.
In August 2024, the company was informed that a convertible loan issued to a business partner within a temporarily consolidated fund can no longer be classified as recoverable due to economic developments. It can currently be assumed that this will have an extraordinary negative impact on the earnings from companies accounted for using the equity method in the second half of the year in a mid-single-digit million area.
There were no further events after the balance sheet date with an impact on the asset, financial and earnings situation.
7 Responsibility Statement by the legal representatives
To the best of our knowledge, and in accordance with the applicable reporting principles, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the combined interim management report for the Company and 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 financial year.
Augsburg, 13 August 2024
The Executive Directors
The PATRIZIA share
PATRIZIA shareholder structure as at 30 June 2024 | by shareholder group | Specification in \%
- First Capital Partner GmbH ${ }^{1}$
- Union Investment Privatfonds GmbH ${ }^{2}$
- Allianz SE ${ }^{3}$
- PATRIZIA ${ }^{4}$
- Other institutional shareholders ${ }^{5}$
- Private shareholders ${ }^{5}$
[^0]PATRIZIA share performance as at 30 June 2024
[^0]: ${ }^{1}$ First Capital Partner GmbH is attributable to Fournier Wolfgang Egger
${ }^{2}$ According to the voting rights notification of 15 February 2023
${ }^{3}$ According to the voting rights notification of 14 December 2020
${ }^{4}$ Treasury shares
${ }^{5}$ Source: PATRIZIA share register
${ }^{1}$ Based on closing price of EUR 7.12
Treasury shares
The number of treasury shares as at 30 June 2024 amounted to $6,122,608$ with a total value of EUR 98,561k based on average share prices.
Treasury shares - 30.06.2024
| Number of shares | Price per share in EUR ${ }^{1}$ | Total Value in EUR | |
|---|---|---|---|
| As at 01.01. | $6,507,043$ | 101,859,064 | |
| Disposal and transfer of shares | $-384,435$ | 8.58 | $-3,298,452$ |
| Closing balance ${ }^{2}$ | $6,122,608$ | $98,560,612$ |
${ }^{1}$ Average price per share in EUR from several share purchases/ sales (incl. transaction costs)
${ }^{2}$ The total value of treasury shares is calculated by adding up all share buyback programmes up to the current reporting date, less all sales of treasury shares in the context of purchase price payments of MKA transactions
Financial calendar and contact details
Financial calendar 2024
| Date | |
|---|---|
| 14 August 2024 | H1 2024 Financial Report with investor and analyst conference call |
| 14 November 2024 | 9M 2024 Interim Statement with investor and analyst conference call |
Financial calendar 2025
| Date | |
|---|---|
| 27 February 2025 | 2024 Preliminary results with investor and analyst conference call |
| 21 March 2025 | 2024 Annual Report |
| 14 May 2025 | 3M 2025 Interim Statement with investor and analyst conference call |
| 04 June 2025 | 2025 Annual General Meeting |
| 13 August 2025 | H1 2025 Financial Report with investor and analyst conference call |
| 13 November 2025 | 9M 2025 Interim Statement with investor and analyst conference call |
Investor Relations
Dr Janina Rochell
T +49 $82150910-600$
[email protected]
Corporate Communications
Christoph Liedtke
T +49 821 50910-636
[email protected]
This H1 2024 financial report was published on 13 August 2024. This is a translation of the German H1 2024 Financial Report. In case of doubt, the German version shall apply. Both versions are available on our website:
https://ir.patrizia.ag/de/news-publikationen/zwischenmitteilungen-und-halbjahresfinanzberichte
https://ir.patrizia.ag/en/news-publications/interim-statements-and-h1-financial-reports