Interim / Quarterly Report • Aug 18, 2022
Interim / Quarterly Report
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H1 2022 Financial Report
| Key figures 3 | ||
|---|---|---|
| Interim group management report4 | ||
| 1 2 3 |
Economic report 4 Development of opportunities and risks 20 Guidance 20 |
|
| Consolidated financial statements21 | ||
| Consolidated balance sheet 21 | ||
| Consolidated income statement 23 | ||
| Consolidated statement of comprehensive income 24 | ||
| Consolidated cash flow statement 25 Consolidated statement of changes in equity 27 |
||
| Notes to the interim consolidated financial statements28 | ||
| 1 | Principles applied in the preparation of the interim consolidated financial statements 28 | |
| 2 | Consolidated group 29 | |
| 3 | Notes to the balance sheet and income statement 32 | |
| 4 | Segment reporting 48 | |
| 5 | Information on the consolidated cash flow statement 51 | |
| 6 | Other explanations 51 | |
| 7 | Responsibility Statement by the legal representatives 52 | |
| The PATRIZIA share 53 | ||
| Financial calendar and contact details55 |
| H1 2022 | H1 2021 | Change | |
|---|---|---|---|
| Assets under Management (AUM)¹ | EUR 56.2bn | EUR 48.2bn | 16.7% |
| EBITDA | EUR 54.5m | EUR 60.3m | -9.5% |
| EBITDA margin | 32.2% | 35.5% | -3.3 PP |
1 AUM as at 31 December 2021: EUR 48.6bn (change 30 June 2022 vs. 31 December 2021: +15.6%)
PP = percentage points
| EUR k | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Revenues | 158,476 | 140,185 | 13.0% |
| Total operating performance | 166,241 | 144,009 | 15.4% |
| EBITDA | 54,534 | 60,282 | -9.5% |
| EBIT | 29,996 | 42,952 | -30.2% |
| EBT | 26,398 | 39,574 | -33.3% |
| Consolidated net profit | 15,047 | 26,613 | -43.5% |
| EUR k | 30.06.2022 | 31.12.2021 | Change |
|---|---|---|---|
| Non-current assets | 1,262,182 | 1,067,145 | 18.3% |
| Current assets | 662,127 | 994,312 | -33.4% |
| Equity (excl. non-controlling interests) | 1,278,104 | 1,282,809 | -0.4% |
| Equity ratio (excl. non-controlling interests) | 66.4% | 62.2% | 4.2 PP |
| Net equity ratio | 73.1% | 74.6% | -1.5 PP |
| Non-current liabilities | 470,844 | 352,477 | 33.6% |
| Current liabilities | 138,412 | 390,477 | -64.6% |
| Total assets | 1,924,309 | 2,061,457 | -6.7% |
PP = percentage points
| ISIN | DE000PAT1AG3 |
|---|---|
| SIN (Security Identification Number) | PAT1AG |
| Code | PAT |
| Issued shares as at 30.06.2022 | 92,351,476 shares |
| Outstanding shares as at 30.06.2022¹ | 88,239,576 shares |
| Treasury shares as at 30.06.2022 | 4,111,900 shares |
| H1 2022 high² | EUR 20.95 |
| H1 2022 low² | EUR 10.40 |
| Closing price as at 30.06.2022² | EUR 11.28 |
| Share price performance H1 2022² | -45.0% |
| Market capitalisation as at 30.06.2022 | EUR 1.0bn |
| Average trading volume per day H1 2022³ | 60,132 shares |
| Indices | SDAX, MSCI World Small Cap Index and others (CDAX, Classic All Share, DAX International Mid 100, DAXsector Financial Services, DAXsubsector Real Estate, Solactive DIMAX Deutschland, Prime All Share, S&P GIVI Global Index, S&P Global BMI, S&P Intrinsic Value Weighted Global Index, S&P Low Beta Global Index) |
1 Reduced number of shares compared to the issued shares due to share buybacks
2 Closing price on Xetra-trading
3 All German stock exchanges
The conversion of PATRIZIA AG into a European Stock Corporation (Societas Europaea, SE) was completed on 15 July 2022 by entry into the Commercial Register when it became legally effective. The legal form of the SE emphasises the European and international orientation of PATRIZIA Group. The previous dualistic management structure, consisting of a Management Board and a Supervisory Board, was adapted to an international, monistic management structure with a Board of Directors. Management is carried out by three Executive Directors. The company's founder and majority shareholder Wolfgang Egger is an Executive Director as well as a member of the Board of Directors, together with six external and independent Directors. The Audit Committee and the Nomination and Compensation Committee remain unchanged. Neither shareholder rights nor financial reporting are not affected by the conversion. The headquarters of PATRIZIA SE will remain in Augsburg, Germany.
The first half of 2022 continued to develop favourably for PATRIZIA despite an uncertain geopolitical environment and significantly increased market uncertainties. The financial results demonstrate the company's stability and continued growth, supported by income from the deconsolidation of subsidiaries due to the profitable disposal of the temporarily held project development Silver Swan C 2018 S.á.r.l. Growth in Assets under Management and management fees, as well as the strong growth momentum in signed and closed transactions, confirm the resilience of the business model even in uncertain times.
After the first six months of 2022, PATRIZIA expects an FY 2022 EBITDA in a range of between EUR 100.0 - 120.0m - unchanged to the guidance issued at the 3M 2022 financial results. The guidance assumes a stabilisation scenario of the geopolitical environment and a decrease in market uncertainties in the second half of 2022.
As at 30 June 2022, PATRIZIA had real assets under management of EUR 56.2bn, up from EUR 48.6bn as at 31 December 2021. The infrastructure sector meanwhile represents 11% of PATRIZIA's Assets under Management (compared to 4% as at 31 December 2021). In the first half of 2022, AUM were further internationalised with 47% or EUR 26.2bn of AUM abroad and 53% or EUR 30.0bn in Germany. In total, Assets under Management increased by EUR 7.6bn or 15.6% in the reporting period. This increase is due to the closing of the Whitehelm Capital acquisition on 1 February 2022, positive valuation effects as well as higher signed but also closed acquisitions for the Group's global client base.
Assets under Management (EUR bn)
Assets under Management as at 30 June 2022 | Geographical distribution
Composition of EBITDA (EUR m)
¹ The previous year's figures were restated in line with the new structure in the year under review
During the reporting period 2022, the total service fee income was maintained at an almost stable level and thus decreased only marginally by -1.8% to EUR 161.6m (H1 2021: EUR 164.5m). In line with the Group's strategy, management fees increased year-on-year. This supports the company's objective of significantly improving the quality of fee income. The individual components of total service fee income are explained below:
Management fees: All services provided by PATRIZIA are remunerated with fees. Management fees are recurring and include the company's remuneration for real estate services such as asset, fund and portfolio management as well as project developments. Management fees of EUR 116.4m were generated in the first half of 2022 (H1 2021: EUR 104.0m). The increase of 11.9% was mainly due to growth in Assets under Management.
Transaction fees: PATRIZIA generates transaction fees for the execution of acquisitions and disposal transactions. These fees amounted to EUR 11.4m in the first half-year (H1 2021: EUR 21.1m; -45.8%). Acquisitions accounted for EUR 9.1m (H1 2021: EUR 16.0m; -43.0%) and disposals for EUR 2.3m (H1 2021: EUR 5.1m; -54.4%). In addition to the challenging market environment, the decrease is also due to the fact that the majority of transactions completed in the first half of 2022 were for funds with (all-in) management fees. Depending on the further development of geopolitical risks and market uncertainties, PATRIZIA expects increased transaction activity in the second half of 2022 and further growth especially in transaction and performance fees.
Performance fees: PATRIZIA generates performance fees if defined target investment yields are exceeded. Due to continued active asset management of the real asset portfolio managed by PATRIZIA, performance fees also remained at a high level of EUR 33.8m and thus made an important contribution to the EBITDA compared to a strong prior year (H1 2021: EUR 39.4m). The year-on-year decline is in line with the company planning for FY 2022. In the consolidated income statement, these fees are reported partly as revenues (EUR 13.4m; H1 2021: EUR 17.5m) and partly as income from participations (EUR 20.4m; H1 2021: EUR 22.0m).
In the 2022 reporting period, PATRIZIA generated EUR 7.5m in net sales revenues and co-investment income, compared to EUR 5.4m in the same period of the previous year (+38.0%). Principal investments contributed in particular via the profitable sale of one of the last remaining balance sheet properties in the UK to an overall positive result. Increased rental income from assets temporarily held on the balance sheet for the purpose of distribution in the area of private and semi-professional investors also contributed to an increase in this item.
Net operating expenses increased by 4.5% from EUR 109.7m in the previous year to EUR 114.6m in the reporting year 2022, mainly due to the increase in staff costs related to the increase in headcount as well as one-off effects in other operating expenses due to strategic investments. The increased number of full-time employees in the Group (1,009 FTE as at 30 June 2022 compared to 894 FTE as at 30 June 2021) can essentially be attributed to the acquisition of Whitehelm Capital. As at the reporting date of 30 June 2022, this resulted in 70 new PATRIZIA employees. One-off items had a negative impact on net operating expenses in the first half of 2022. As an example, transaction costs of EUR 1.7m were incurred in connection with the takeover of Whitehelm Capital, which represent a one-off effect. The profitable deconsolidation of a project development in Hamburg (Silver Swan), which was held temporarily on the balance sheet, had a relieving effect on net operating expenses at the same time.
| in % | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| EBITDA margin | 32.2% | 35.5% | -3.3 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 3.3 percentage points to 32.2% (H1 2021: 35.5%) due to one-off effects and continued strategic investments to further diversify and globalise the company.
Transaction volume based on signed transactions (EUR bn)
Due to the strong and diversified PATRIZIA platform, successful transactions for German and international clients were signed and closed in the first half of 2022.
New equity of EUR 0.6bn was raised from institutional, semi-professional and private investors for various German and international real asset investments.
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 2022 1,009 employees (FTE) serve its clients across 28 locations worldwide. PATRIZIA 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. As a result, client preferences and requirements can be met extensively and specifically. Its clients include institutional and semi-professional investors such as insurance firms, pension providers and sovereign wealth funds from Germany, Europe, the US and Asia in addition to private investors. PATRIZIA develops bespoke products for its clients in line with their individual return expectations, diversification objectives and risk styles.
PATRIZIA's core business is real asset investment management for institutional, semi-professional and private investors. PATRIZIA generates fee income for the services it performs and investment income from its co-investments and principal investments. Accordingly, the Group's activities can be broken down into the following three categories:
In its funds under management, PATRIZIA uses its own regulated and unregulated platforms to structure, place and manage fund assets for PATRIZIA clients. These funds are launched without any equity investment on the part of PATRIZIA. PATRIZIA generates stable and recurring income in the form of management fees for the management of real estate assets, infrastructure projects and project developments as well as transaction fees for acquisition and disposal transactions. PATRIZIA also receives performance fees if defined individual yield targets are exceeded.
PATRIZIA has various regulated investment platforms, including German asset management (KVG) companies and a regulated platform (AIFMs) in Luxembourg, Denmark and the United Kingdom. The companies make investments in various real asset sectors, with a particular focus on Europe, on behalf of their clients via the funds launched. The funds act as holding agents. The assets held by the funds typically have a planned initial holding period of between five and ten years.
Funds under management also include co-investments. PATRIZIA uses co-investments to participate in real asset investments with its own capital alongside that of its investors, particularly in the value-add and opportunistic segments. In addition to committing to the customer and the transaction, PATRIZIA generates fees and additional investment income. This allows PATRIZIA's shareholders to participate indirectly in the performance of an attractive real estate and infrastructure portfolio. Co-investments accounted for EUR 9.1bn of PATRIZIA's assets under management as at 30 June 2022. PATRIZIA has invested EUR 0.1bn of its own equity in co-investments, current market values of these co-investments are significantly above the historic investment costs. PATRIZIA's largest co-investment is Dawonia GmbH with EUR 5.4bn in assets under management. Further details on co-investments can be found in the capital allocation in chapter 1.3.
All in all, funds under management accounted for EUR 55.4bn of PATRIZIA's assets under management as of 30 June 2022 (31 December 2021: EUR 47.5bn).
PATRIZIA Global Partners A/S is responsible for managing fund of funds products. Operating with a global network of partners, PATRIZIA Global Partners A/S invests in best-in-class real estate funds in Europe, Asia and the Americas. Assets under management (invested equity) in these funds amounted to EUR 0.8bn as at 30 June 2022 (31 December 2021: EUR 1.1bn).
PATRIZIA operates as an investment manager for institutional, semi-professional and private investors, and therefore endeavours to avoid conflicts of interest with its own investments. Principal investments, i.e. own-account transactions, relate to the company's own property portfolio, which is being downsized in line with the strategy. The company also has small residual holdings of properties for resale. Principal investments amounted to EUR 2.3m as at 30 June 2022, compared to EUR 18.1m as at 31 December 2021.
Separately from the principal investments, properties are in some individual cases temporarily consolidated at the company as interim financing for closed-end funds or as early-phase investments with the purpose of subsequent contribution to funds. Information on the earnings development of the principal investments can be found in the description of the company's results of operations in chapter 1.3.
In the first half of 2022, PATRIZIA was successfully active for institutional, semi-professional and private investors, particularly in the European real estate markets, despite an adverse geopolitical environment and significantly increased market uncertainties. The Group's earnings, assets and financial position are stable or only slightly below previous year's results despite the current situation, supported by income from the deconsolidation of subsidiaries due to the profitable disposal of the temporarily held project development Silver Swan C 2018 S.á.r.l.
The EBITDA is the Group's key performance indicator.
In the first half of 2022 an EBITDA of EUR 54.5m was achieved. The detailed reconciliation and development of the EBITDA is shown in the table below:
Reconciliation of EBITDA
| EUR k | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Total operating performance | 166,241 | 144,009 | 15.4% |
| Cost of materials | -494 | -1,090 | -54.6% |
| Cost of purchased services | -9,356 | -8,956 | 4.5% |
| Staff costs | -82,499 | -68,085 | 21.2% |
| Other operating expenses | -41,867 | -33,453 | 25.2% |
| Impairment result for trade receivables and contract assets | -73 | 104 | -169.9% |
| Result from participations | 27,200 | 28,587 | -4.9% |
| Earnings from companies accounted for using the equity method |
-189 | 1,245 | -115.2% |
| Cost from the deconsolidation of subsidiaries | -2,122 | -608 | 249.2% |
| EBITDAR | 56,840 | 61,754 | -8.0% |
| Reorganisation result | -2,307 | -1,472 | 56.7% |
| EBITDA | 54,534 | 60,282 | -9.5% |
The individual components of the EBITDA are explained in more detail below according to their order in the consolidated income statement.
| EUR k | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Revenues from management services | 136,527 | 137,849 | -1.0% |
| Proceeds from the sale of principal investments | 18,079 | -30 | > 1000.0% |
| Rental revenues | 3,840 | 1,191 | 222.4% |
| Revenues from ancillary costs | 113 | 449 | -74.9% |
| Other | -81 | 725 | -111.2% |
| Revenues | 158,476 | 140,185 | 13.0% |
In the first half of the reporting year 2022, revenues increased from EUR 140.2m to EUR 158.5m (+13.0%) compared to the same period of the previous year.
Revenues from management services fell by 1.0% from EUR 137.8m to EUR 136.5m in the reporting period compared to the previous year. However, revenues alone have only limited information value; certain profit and loss items not included in revenues, such as the result from participations, 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 161.6m, which corresponds to a reduction of -1.8% compared to the previous year's figure of EUR 164.5m. Driven by growth in assets under management, management fees including result from participations increased by 11.9% year-on-year to EUR 116.4m (H1 2021: EUR 104.0m). Transaction fees decreased by -45.8% to EUR 11.4m (H1 2021: EUR 21.0m). Performance fees decreased to EUR 33.8m (H1 2021: EUR 39.4; -14.3%).
If the result from participations is shown separately within total service fee income, the following picture emerges:
| EUR k | H1 2022 | H1 2021¹ | Change |
|---|---|---|---|
| Management fees (excluding result from participations) | 111,714 | 99,333 | 12.5% |
| Performance fees (excluding result from participations) | 13,397 | 17,466 | -23.3% |
| Transaction fees | 11,416 | 21,050 | -45.8% |
| Revenues from management services | 136,527 | 137,849 | -1.0% |
| Performance fees (in result from participations) | 20,408 | 21,969 | -7.1% |
| Shareholder contribution for management services (in result from participations) |
4,706 | 4,706 | 0.0% |
| Total service fee income | 161,641 | 164,525 | -1.8% |
1 The previous year's figures were adjusted to the new structure in the reporting year
Proceeds from the sale of principal investments amounted to EUR 18.1m after EUR 0.0m in the previous year. This position includes the sale of the prinicpal investment Trocoll House in the UK in the amount of EUR 17.9m, which was partially offset by the change in inventories of EUR 15.9m, resulting in a net positive effect in the consolidated income statement of EUR 2.0m. The reduction in principal investments is in line with the stronger strategic focus on investment management services.
In the reporting period, PATRIZIA generated rental revenues of EUR 3.8m, compared with EUR 1.2m in H1 2021, in particular for properties only temporarily held on the balance sheet.
Revenues from ancillary costs relate to rental ancillary costs and amounted to EUR 0.1m in the period under review (H1 2021: EUR 0.4m).
Other essentially comprises transaction costs. This item decreased from EUR 0.7m in the same period of the previous year to EUR -0.1m in H1 2022.
Total operating performance reflects PATRIZIA's operating performance more comprehensively than revenues. Other relevant parameters are considered in total operating performance. In the first half of the reporting year 2022, total operating performance increased by 15.4% to EUR 166.2m, compared to EUR 144.0m in the same period of the previous year.
| EUR k | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Revenues | 158,476 | 140,185 | 13.0% |
| Changes in inventories | -15,950 | 1,746 | < - 1,000.0% |
| Other operating income | 5,627 | 2,015 | 179.3% |
| Income from the deconsolidation of subsidiaries | 18,087 | 63 | >1,000.0% |
| Total operating performance | 166,241 | 144,009 | 15.4% |
Changes in inventories of EUR -16.0m were reported in the first half of 2022 (H1 2021: EUR 1.7m), mainly due to the sale of the principal investment Trocoll House in the UK.
Other operating income amounted to EUR 5.6m in the first half of 2021 (H1 2021: EUR 2.0m) and mainly includes income from expired obligations of EUR 4.5m.
Income from the deconsolidation of subsidiaries mainly results from the deconsolidation of Silver Swan C 2018 S.á.r.l. in 2022. The background of the deconsolidation is the profitable disposal of a project development in Hamburg, which was temporarily held on the company's own balance sheet.
The cost of materials includes construction and maintenance work for principal investments, which are usually capitalised and must be seen in connection with changes in inventories. Compared to the same period of the previous year, the cost of materials decreased by 54.6% year-on-year from EUR 1.1m to EUR 0.5m.
The cost of purchased services includes in particular the purchase of fund management services for 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 since 2018.
As at 30 June 2022 PATRIZIA had 1,009 employees based on full-time equivalents (FTE).
| Staff costs | |||
|---|---|---|---|
| EUR k | H1 2022 | H1 2021 | Change |
| Fixed salaries | 49,030 | 41,870 | 17.1% |
| Variable salaries | 21,339 | 16,612 | 28.5% |
| Social security contributions | 12,114 | 8,619 | 40.5% |
| Effect of long-term variable remuneration¹ | -1,805 | -886 | 103.8% |
| Other | 1,821 | 1,869 | -2.5% |
| Total | 82,499 | 68,085 | 21.2% |
1 Changes in value of long-term variable remuneration due to change in the company's share price. For further details, see the remuneration report in section 3.2
Overall, staff costs increased by 21.2% to EUR 82.5m in the first half of 2022 (H1 2021: EUR 68.1m), in particular due to the increased number of employees as a result of the Whitehelm Capital acquisition.
In view of the increased number of employees from 894 (30 June 2021) to 1,009 full-time equivalents (30 June 2022), fixed salaries increased by 17.1%. Variable salaries as well as social security contributions also increased, by 28.5% and 40.5% respectively over the same period. As a result of the negative PATRIZIA share price performance in the first half of 2022, the valuation of long-term variable remuneration reduced costs by EUR 1.8m in the reporting period. The Other item mainly includes non-cash benefits.
At a level of EUR 41.9m, other operating expenses in H1 2022 are 25.2% higher than in the same period of the previous year. Below is a detailed breakdown:
Other operating expenses
| EUR k | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Tax, legal, other advisory and financial statement fees | 11,101 | 8,313 | 33.5% |
| IT and communication costs and cost of office supplies | 9,137 | 9,336 | -2.1% |
| Rent, ancillary costs and cleaning costs | 1,835 | 1,494 | 22.9% |
| Other taxes | 2,564 | 387 | 562.9% |
| Vehicle and travel expenses | 3,116 | 1,558 | 99.9% |
| Advertising costs | 1,966 | 1,920 | 2.4% |
| Recruitment and training costs and cost of temporary workers | 2,819 | 2,751 | 2.5% |
| Contributions, fees and insurance costs | 2,501 | 2,895 | -13.6% |
| Commission and other sales costs | 951 | 153 | 520.1% |
| Costs of management services | 1,137 | 52 | >1,000.0% |
| Indemnity/reimbursement | 315 | 12 | >1,000.0% |
| Donations | 1,190 | 1,168 | 1.8% |
| Other | 3,236 | 3,414 | -5.2% |
| Total | 41,867 | 33,453 | 25.2% |
Tax, legal, other advisory and financial statement fees of EUR 11.1m (H1 2021: EUR 8.3m) include, among others:
The increase in other taxes is attributable to a one-off item relating to VAT payments for previous years in the Netherlands.
Vehicle and travel expenses as well as advertising costs are back at 2020 and 2019 levels, respectively, following the lifting of travel and contact restrictions in conjunction with the Covid-19 pandemic.
Recruitment, training and temporary employment costs are at a stable level.
The item contributions, fees and insurance costs breaks down into contributions of EUR 1.2m (H1 2021: EUR 1.3m), insurance in the amount of EUR 0.9m (H1 2021: EUR 1.1m) and bank fees of EUR 0.4m (H1 2021: EUR 0.5m).
The increase in costs of management services in H1 2022 mainly refers to the purchase of external project management services as part of the RED (real estate development) project Carossa.
The donations include donations to charitable organisations such as the PATRIZIA Foundation. In 2022, the Group's management had decided to support charitable organisations annually with up to 1% of the Company´s EBITDA (since 2018 until 2021 with up to 1% of operating income).
This item includes impairment losses for other trade receivables and other assets in the amount of EUR -0.1m (H1 2021: EUR 0.6m).
Result from participations and earnings from companies accounted for using the equity method PATRIZIA generated a result from participations of EUR 27.2m in H1 2022 (H1 2021: EUR 28.6m, -4.9%). Overall, income from participations of EUR 26.7m (H1 2021: EUR 28.3m) was related to the Dawonia GmbH co-investment.
The result from companies accounted for using the equity method totals EUR -0.2m (H1 2021: EUR 1.2m). The decrease compared to the previous year is due to lower income from the co-investment WohnModul I SICAV-FIS. 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 performancerelated fees.
| EUR k | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| Dawonia GmbH | 26,725 | 28,287 | -5.5% |
| Co-investments in the UK (Aviemore and Citruz) | 0 | 69 | / |
| TRIUVA | 9 | 9 | -6.9% |
| Closed-end funds business | 513 | 163 | 214.5% |
| Other | -47 | 59 | -180.5% |
| Result from participations | 27,200 | 28,587 | -4.9% |
| Earnings from companies accounted for using the equity method |
-189 | 1,245 | -115.2% |
| Total | 27,011 | 29,832 | -9.5% |
Compared to the same period last year, reorganisation expenses totalled EUR 2.3m (H1 2021: EUR 1.5m). The reorganisation expenses recognised in the current period mainly result from continued strategic investments to further diversify and globalise the company. These were mainly expenses for severance payments, current salaries during the release phase, material costs and consulting costs in connection with the reorganisation. Provisions from the reorganisation that are no longer required are released to the income statement.
Cost from the deconsolidation of subsidiaries mainly relate to the deconsolidation of property companies in which properties are temporarily held on the own balance sheet.
In the first half of 2022 the net profit for the period declined to EUR 15.0m (H1 2021: EUR 26.6m; -43.5%), which, in addition to the lower EBITDA, is mainly attributable to extraordinary impairments recognised on intangible assets.
Reconciliation of net profit for the period
| EUR k | H1 2022 | H1 2021 | Change |
|---|---|---|---|
| EBITDA | 54,534 | 60,282 | -9.5% |
| Appreciation/amortisation of other intangible assets¹, software and rights of use, depreciation of property, plant and equipment |
|||
| as well as financial investments | -24,537 | -17,331 | 41.6% |
| Earnings before interest and taxes (EBIT) | 29,996 | 42,952 | -30.2% |
| Finance income | 652 | 952 | -31.4% |
| Financial expenses | -3,977 | -2,991 | 32.9% |
| Result from currency translation | -274 | -1,338 | -79.5% |
| Net finance costs | -3,599 | -3,378 | 6.6% |
| Earnings before taxes (EBT) | 26,398 | 39,574 | -33.3% |
| Income taxes | -11,351 | -12,961 | -12.4% |
| Net profit for the period | 15,047 | 26,613 | -43.5% |
1 In particular fund management contracts transferred as part of the recent acquisitions
The following section discusses the relevant items of the reconciliation of consolidated net profit.
Appreciation/amortisation of other intangible assets, software and rights of use, depreciation of property, plant and equipment as well as financial investments increased to EUR 24.5m (H1 2021: EUR 17.3m; 41.6%) and mainly includes amortisation of fund management contracts and licenses of EUR 6.3m (H1 2021: EUR 8.1m), amortisation of rights of use of EUR 5.0m (H1 2021: EUR 6.6m), amortisation of software and depreciation of operating and office equipment of EUR 7.2m (H1 2021: EUR 3.2m) as well as amortisation of goodwill of EUR 5.6m (H1 2021: EUR 0.0m).
The increase in appreciation/amortisation and depreciation mainly results from the extraordinary depreciation of the intangible assets of the technology investment BrickVest due to strategic decisions of the management. These impairment losses consisted of the impairment of goodwill of EUR 5.6m and the amortisation of software of EUR 4.1m.
Financial income fell to EUR 0.7m, after EUR 1.0m in the previous year (-31.4%) and was primarily due to shareholder loans in the context of co-investments, interest due to receivables from staff and interest refunds from the tax office.
Financial income was offset by financial expenses of EUR 4.0m (H1 2021: EUR 3.0m, 32.9%), interest on bonded loans and interest from the compounding of pension obligations.
The result from currency translation amounted to EUR -0.3m as at 30 June 2022 (H1 2021: EUR -1.3m).
Income taxes amounted to EUR 11.4m in H1 2022 compared to EUR 13.0m in H1 2021 (-12.4%). The tax rate (income taxes in relation to EBT) was 43.0% in the reporting period (H1 2021: 32.8%). The reason for the increase mainly results from additional tax expenses for previous years.
The individual components of EBITDA and their respective line items, in particular within the consolidated income statement, are explained below.
| EUR k | H1 2022 | Table in the current report |
|---|---|---|
| Management fees (excluding result from participations) | 111,714 | Reconciliation of total service fee income |
| Shareholder contribution for management services (in result from | ||
| participations) | 4,706 | Reconciliation of total service fee income |
| Management fees | 116,420 | |
| Transaction fees | 11,416 | Reconciliation of total service fee income |
| Performance fees (excluding result from participations) | 13,397 | Reconciliation of total service fee income |
| Performance fees (in result from participations) | 20,408 | Reconciliation of total service fee income |
| Performance fees | 33,805 | |
| Total service fee income | 161,641 | Reconciliation of total service fee income |
| Revenues from the sale of principal investments | 18,079 | Revenues |
| Changes in inventories | -15,950 | Consolidated income statement |
| Cost of materials | -494 | Consolidated income statement |
| Rental revenues | 3,840 | Revenues |
| Revenues from ancillary costs | 113 | Revenues |
| Net sales revenues | 5,587 | |
| Earnings from companies accounted for using the equity method | -189 | Consolidated income statement |
| Remaining result from participations | 2,086 | Consolidated income statement & Reconciliation of total service fee income |
| Co-Investment result | 1,897 | |
| Net sales revenues and co-investment income | 7,483 | |
| Staff costs | -82,499 | Consolidated income statement |
| Other operating expenses | -41,867 | Consolidated income statement |
| Cost of purchased services | -9,356 | Consolidated income statement |
| Other operating income | 5,627 | Consolidated income statement |
| Other revenues | -81 | Revenues |
| Income from the deconsolidation of subsidiaries | 18,087 | Consolidated income statement |
| Cost from the deconsolidation of subsidiaries | -2,122 | Consolidated income statement |
| Impairment result for trade receivables and contract assets | -73 | Consolidated income statement |
| Reorganisation expenses | -2,307 | Consolidated income statement |
| Net operating expenses | -114,590 | |
| EBITDA | 54,534 |
| EUR k | 30.06.2022 | 31.12.2021 | Change |
|---|---|---|---|
| Total assets | 1,924,309 | 2,061,457 | -6.7% |
| Equity (excl. non-controlling interests) | 1,278,104 | 1,282,809 | -0.4% |
| Equity Ratio | 66.4% | 62.2% | 4,2 PP |
| Cash and cash equivalents | 288,487 | 341,260 | -15.5% |
| + Term deposits | 150,869 | 210,831 | -28.4% |
| - Bank loans | -17,337 | -171,095 | -89.9% |
| - Bonded loans | -158,000 | -234,000 | -32.5% |
| = Net cash (+) / net debt (-) | 264,019 | 146,995 | 79.6% |
| Net Equity Ratio¹ | 73.1% | 74.6% | -1,5 PP |
1Net equity ratio: Equity (excl. non-controlling interests) divided by total net assets (total assets less liabilities covered by cash in hand) PP = Percentage points
The Group's total assets declined slightly compared with the end of 2021 to EUR 1.9bn.
In the reporting period, equity remains constant at EUR 1.3bn. We refer to the statement of changes in equity for further information on changes in equity of the financial year 2022. The equity ratio increased by 4.2 percentage points.
PATRIZIA's balance sheet real estate assets decreased by 82.8% in the reporting period, from EUR 171.6m as at 31 December 2021 to EUR 29.6m as at 30 June 2022. This is mainly due to the deconsolidation regarding the temporary warehousing of properties for the purpose of placement in public funds as well as the profitable and strategically aligned disposal of one of the last remaining balance sheet properties in the UK. Investment property remained on a low level of EUR 1.8m as at 30 June 2022 in line with strategy.
| EUR k | 30.06.2022 | 31.12.2021 | Change |
|---|---|---|---|
| Inventories | 27,741 | 169,796 | -83.7% |
| Investment property | 1,838 | 1,838 | 0.0% |
| Real estate assets | 29,580 | 171,634 | -82.8% |
An overview of all PATRIZIA's participations, assets under management and invested capital can be found in the following table.
| Assets under Management |
Invested capital (fair value) |
Invested capital (at cost) |
Participations | |
|---|---|---|---|---|
| EUR m | EUR m | EUR m | in % | |
| Third-party business | 47,114.9 | 0.0 | ||
| Co-Investments | 9,093.9 | 581.6 | 101.8 | |
| Real estate - residential | 5,430.4 | 551.8 | 78.5 | |
| thereof Dawonia GmbH | 5,351.4 | 178.7 ¹ | 51.7 | 5.1 |
| thereof Dawonia performance fee claims | 346.4 ¹ | 0.0 | 0.1 | |
| Real estate - balanced | 2,529.5 | 12.1 | 10.0 | |
| Real estate - commercial | 638.2 | 15.5 | 11.1 | |
| Infrastructure | 495.7 | 2.2 | 2.2 | |
| Principal investments | 2.3 | 2.1 | ||
| Other balance sheet items | 451.2 ² | |||
| Tied-up investment capital | 56,211.1 | 1,034.9 | ||
| Available liquidity | 401.2 | |||
| Total investment capital | 56,211.1 | 1,436.1 | ||
| of which debt (bonded loans) | 158.0 | |||
| of which equity PATRIZIA (without non-controlling interests) | 1,278.1 |
1 After deduction of deferred taxes from the valuation according to IFRS 9
Including goodwill and fund management contracts61
PATRIZIA holds a participation in a very attractive residential real estate portfolio via Dawonia GmbH. With around 30,000 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, Nuremberg, Erlangen, Regensburg and Würzburg. Dawonia is now also active outside Bavaria, for example in the state of Hesse.
Furthermore, PATRIZIA holds an interest in OSCAR Lux Carry S.C.S (Dawonia performance fee claims – see table above). OSCAR Lux Carry S.C.S. embodies a claim to a variable profit share structured under company law in favour of PATRIZIA in connection with the Dawonia investment. Against the backdrop of the contractual provisions, a repayment of the investment may arise from 2023 onwards.
The Group's financial liabilities decreased from EUR 405.1m to EUR 175.3m as at 30 June 2022 compared to 31 December 2021, in particular due to the repayment of interim financing and the further repayment of the bonded loan. The bonded loan of EUR 300.0m raised in 2017 consists of tranches of five, seven and ten years. In the first half of 2022 bonded loan tranches in the amount of EUR 76.0m were repaid. Remaining bonded loan tranches as at 30 June 2022 are recognised under noncurrent liabilities with EUR 158.0m. The short-term bank loans of EUR 17.3m relate to temporary interim financing.
Financial liabilities developed as follows as against the end of 2021:
| EUR k | 30.06.2022 | 31.12.2021 | Change |
|---|---|---|---|
| Non-current bonded loans | 158,000 | 158,000 | 0.0% |
| Short-term bonded loans | 0 | 76,000 | -100.0% |
| Short-term bank loans | 17,337 | 171,095 | -89.9% |
| Total financial liabilities | 175,337 | 405,095 | -56.7% |
A detailed maturity profile of the financial liabilities can be found in note 3 in the notes to the consolidated interim financial statements.
PATRIZIA has available liquidity of EUR 401.2m as at 30 June 2022 compared to EUR 512.7m at the end of 2021. The decrease is explained in particular by the repayment of the bonded loan and the payment of dividend to the Group's shareholders for FY 2021.
| EUR k | 30.06.2022 | 31.12.2021 |
|---|---|---|
| Cash and cash equivalents | 288,487 | 341,260 |
| Term deposits | 150,869 | 210,831 |
| Liquidity | 439,356 | 552,090 |
| Regulatory reserve for investment management companies | -38,103 | -37,548 |
| Liquidity in closed-end funds business property companies | -88 | -1,859 |
| Available liquidity | 401,164 | 512,683 |
Liquidity amounts to EUR 439.4m in total (31 December 2021: EUR 552.1m). However, PATRIZIA cannot freely access the full amount. The decline since the beginning of the year is in particular due to the repayment of the bonded loan, payments for the acquisition companies and participations as well as the ongoing share buy-back programme. A total of EUR 150.9m is invested in short-term deposits. Furthermore, cash and cash equivalents of EUR 38.1m in total must be permanently retained for asset management companies and closed-ended funds in order to comply with the relevant regulatory requirements.
PATRIZIA is exposed to both opportunities and risks as part of its business activities. Within the Group the necessary measures have been taken and processes installed to prevent negative developments and to identify risks in good time and to be able to counteract them.
The risk environment in the first half of 2022 was strongly influenced by developments in connection with the Ukraine crisis. In addition, the current dynamic market environment, particularly with regards to interest rate developments and inflation, poses major challenges for key areas of PATRIZIA's business activities. However, the assessment of the developments in the risk environment during the year does not lead to any substantial changes in the statements made in the Group Annual Report 2021 with regard to PATRIZIA's risk coverage potential.
Furthermore, statements made in the risk report contained in PATRIZIA's 2021 Group Annual Report continue to apply. For a detailed presentation of the opportunities and risks in the Group, please refer to the explanations in chapter 4 of the 2021 Group Annual Report.
Unchanged to the earnings guidance published with the Group's 3M 2022 interim statement, after the first six months of 2022 PATRIZIA expects EBITDA of between EUR 100.0 - 120.0m for FY2022, assuming a stabilisation of the geopolitical environment and a decline in market uncertainties in the second half of 2022.
Guidance FY 2022
| Guidance range 2022 | ||||
|---|---|---|---|---|
| EUR m | 2021¹ | H1 2022 | min | max |
| Management fees | 209.1 | 116.4 | 245.0 | 260.0 |
| Transaction fees | 51.4 | 11.4 | 30.0 | 38.0 |
| Performance fees | 81.9 | 33.8 | 55.0 | 65.0 |
| Total service fee income | 342.4 | 161.6 | 330.0 | 363.0 |
| Net sales revenues and co-investment income | 11.4 | 7.5 | 5.0 | 7.0 |
| Net operating expenses | -224.9 | -114.6 | -235.0 | -250.0 |
| EBITDA | 128.9 | 54.5 | 100.0 | 120.0 |
| EBIT | 93.3 | 30.0 | 49.5 | 69.5 |
| EBT | 87.7 | 26.4 | 46.2 | 66.2 |
¹ The previous year's figures were restated in line with the new structure in the year under review
| EUR bn | 2021 | H1 2022 | min | max |
|---|---|---|---|---|
| Assets under management | 48.6 | 56.2 | 57.0 | 60.0 |
| EBITDA margin | 35.9% | 32.2% | 29.9% | 32.4% |
The Executive Directors
Wolfgang Egger Executive Director, CEO
Thomas Wels Executive Director, Co-CEO
Christoph Glaser Executive Director, CFO
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.
as at 30 June 2022
| EUR k | 30.06.2022 | 31.12.2021 |
|---|---|---|
| A. Non-current assets | ||
| Goodwill | 371,189 | 216,444 |
| Other intangible assets | 110,587 | 91,742 |
| Software | 9,131 | 14,204 |
| Rights of use | 29,644 | 33,770 |
| Investment property | 1,838 | 1,838 |
| Equipment | 9,331 | 9,736 |
| Associated companies accounted using the equity method | 31,902 | 23,747 |
| Participations | 655,094 | 633,976 |
| Non-current borrowings and other loans | 33,968 | 33,914 |
| Other non-current assets | 2,646 | 0 |
| Deferred taxes | 6,852 | 7,774 |
| Total non-current assets | 1,262,182 | 1,067,145 |
| B. Current Assets | ||
| Inventories | 27,741 | 169,796 |
| Securities | 10 | 15,752 |
| Current tax assets | 24,903 | 28,448 |
| Current receivables and other current assets | 320,986 | 439,056 |
| Cash and cash equivalents | 288,487 | 341,260 |
| Total current assets | 662,127 | 994,312 |
| Total assets | 1,924,309 | 2,061,457 |
| EUR k | 30.06.2022 | 31.12.2021 |
|---|---|---|
| A. Equity | ||
| Share capital | 88,240 | 88,620 |
| Capital reserves | 86,597 | 89,831 |
| Retained earnings | ||
| Legal reserves | 505 | 505 |
| Currency translation difference | 48 | 2,317 |
| Remeasurements of defined benefit plans according to IAS 19 | -153 | 99 |
| Revaluation reserve according to IFRS 9 | 196,054 | 179,716 |
| Consolidated unappropriated profit | 906,813 | 921,720 |
| Non-controlling interests | 36,949 | 35,694 |
| Total equity | 1,315,053 | 1,318,503 |
| B. Liabilities | ||
| NON-CURRENT LIABILITIES | ||
| Deferred tax liabilities | 117,778 | 111,577 |
| Retirement benefit obligations | 25,148 | 25,546 |
| Bonded loans | 158,000 | 158,000 |
| Long-term accruals | 3,971 | 3,978 |
| Non-current liabilities | 144,087 | 28,515 |
| Leasing liabilities | 21,861 | 24,862 |
| Total non-current liabilities | 470,844 | 352,477 |
| CURRENT LIABILITIES | ||
| Short-term bank loans | 17,337 | 171,095 |
| Short-term bonded loans | 0 | 76,000 |
| Other provisions | 10,544 | 8,213 |
| Current liabilities | 78,818 | 97,297 |
| Short-term leasing liabilities | 8,338 | 9,505 |
| Tax liabilities | 23,376 | 28,367 |
| Total current liabilities | 138,412 | 390,477 |
| Total equity and liabilities | 1,924,309 | 2,061,457 |
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| Revenues | 77,545 | 81,350 | 158,476 | 140,185 | 13.0% |
| Changes in inventories | -77 | 29 | -15,950 | 1,746 | < - 1.000,0% |
| Other operating income | 4,969 | 1,488 | 5,627 | 2,015 | 179.3% |
| Income from the deconsolidation of subsidiaries |
18,087 | 63 | 18,087 | 63 | >1.000,0% |
| Total operating performance | 100,525 | 82,930 | 166,241 | 144,009 | 15.4% |
| Cost of materials | -154 | -574 | -494 | -1,090 | -54.6% |
| Cost of purchased services | -3,628 | -3,905 | -9,356 | -8,956 | 4.5% |
| Staff costs | -43,462 | -33,667 | -82,499 | -68,085 | 21.2% |
| Other operating expenses | -23,987 | -18,859 | -41,867 | -33,453 | 25.2% |
| Impairment result for trade receivables and | |||||
| contract assets | -68 | -73 | -73 | 104 | -169.9% |
| Result from participations | 3,518 | 3,454 | 27,200 | 28,587 | -4.9% |
| Earnings from companies accounted for using the equity method |
-189 | 892 | -189 | 1,245 | -115.2% |
| Cost from the deconsolidation of subsidiaries |
-2,122 | -608 | -2,122 | -608 | 249.2% |
| EBITDAR | 30,431 | 29,590 | 56,840 | 61,754 | -8.0% |
| Reorganisation income | 0 | 0 | 0 | 1 | -100.0% |
| Reorganisation expenses | -2,307 | -1,058 | -2,307 | -1,473 | 56.6% |
| EBITDA | 28,124 | 28,532 | 54,534 | 60,282 | -9.5% |
| Appreciation/amortisation of other intangible assets, software and rights of use, depreciation of property, plant and equipment as well as financial investments |
-16,853 | -9,120 | -24,537 | -17,331 | 41.6% |
| Earnings before interest and taxes (EBIT) | 11,272 | 19,412 | 29,996 | 42,952 | -30.2% |
| Financial income | 241 | 421 | 652 | 952 | -31.4% |
| Financial expenses | -2,297 | -1,511 | -3,977 | -2,991 | 32.9% |
| Result from currency translation | -141 | -838 | -274 | -1,338 | -79.5% |
| Earnings before taxes (EBT) | 9,074 | 17,484 | 26,398 | 39,574 | -33.3% |
| Income taxes | -6,610 | -5,698 | -11,351 | -12,961 | -12.4% |
| Net profit for the period | 2,464 | 11,786 | 15,047 | 26,613 | -43.5% |
| Attributable to shareholders of the parent | |||||
| company | 1,722 | 10,938 | 13,408 | 25,258 | -46.9% |
| Attributable to non-controlling interests | 741 | 848 | 1,639 | 1,355 | 20.9% |
| Earnings per share (undiluted) in EUR | 0.02 | 0.12 | 0.15 | 0.28 | -46.4% |
| Earnings per share (diluted) in EUR | 0.02 | 0.12 | 0.15 | 0.28 | -46.4% |
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 |
|---|---|---|---|---|
| Net profit for the period | 2,464 | 11,786 | 15,047 | 26,613 |
| Items of other comprehensive income reclassified to net profit | ||||
| for the period | ||||
| Profit/loss arising on the translation of the financial | ||||
| statements of foreign operations | -1,639 | -1,207 | -2,340 | 7,262 |
| Items of other comprehensive income without reclassification | ||||
| to net profit for the period | ||||
| Value adjustments resulting from equity instruments | ||||
| measured including capital gains (IFRS 9) | 15,895 | 14,186 | 16,485 | 14,326 |
| Value adjustments resulting from remeasurements of | ||||
| defined benefit plans (IAS 19) | -270 | 0 | -270 | 0 |
| Other comprehensive income | 13,986 | 12,979 | 13,874 | 21,588 |
| Total comprehensive income for the reporting period | 16,450 | 24,765 | 28,921 | 48,201 |
| Attributable to shareholders of the parent company | 15,738 | 23,945 | 27,225 | 46,730 |
| Attributable to non-controlling interests | 712 | 820 | 1,696 | 1,471 |
| EUR k | H1 2022 | H1 2021 |
|---|---|---|
| Net profit for the period | 15,047 | 26,613 |
| Income taxes recognised through profit or loss | 11,351 | 12,961 |
| Financial expenses recognised through profit or loss | 3,977 | 2,991 |
| Financial income recognised through profit or loss | -652 | -952 |
| Income from participations through profit or loss | -27,200 | -28,587 |
| Earnings from companies accounted for using the equity method | 164 | -1,245 |
| Income from unrealised currency translation recognised through profit or loss | 2,650 | -933 |
| Income from the disposal of other intangible assets, software, rights of use and equipment recognised through profit or loss |
60 | 147 |
| Income from divestments of financial assets recognised through profit or loss | 6 | 0 |
| Amortisation of other intangible assets, software and rights of use, depreciation of property, plant and equipment as well as financial investments |
24,627 | 17,979 |
| Write-ups longterm assets | -90 | -648 |
| Expenses of the deconsolidation of subsidiaries | 2,122 | 608 |
| Income from the deconsolidation of subsidiaries | -18,087 | -63 |
| Other non cash-items | -4,938 | 801 |
| Changes in inventories, receivables and other assets that are not attributable to investment activities |
27,520 | 7,828 |
| 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 |
73 | -9,943 |
| Changes in liabilities that are not attributable to financing activities | -9,865 | -36,449 |
| Distributed income from participations | 28,000 | 33,084 |
| Interest paid | -5,911 | -4,567 |
| Interest received | 695 | 1,012 |
| Income tax payments | -7,476 | -19,847 |
| Cash flow from operating activities | 42,071 | 789 |
| EUR k | H1 2022 | H1 2021 |
|---|---|---|
| Payments for investments in other intangible assets, software and equipment | -2,055 | -4,052 |
| Payments received from the disposal of intangible assets and equipment | 62 | 1 |
| Payments for the acquisition of securities and short-term investments | 0 | -40,547 |
| Payments received from the disposal of securities and short-term investments | 75,584 | 0 |
| Payments for the acquisition of participations | -5,142 | -4,772 |
| Payments received from the disposal of participations | 1,477 | 223 |
| Payments for investments in companies accounted for using the equity method | -25,319 | -30 |
| Payment received through distributions of companies accounted for using the equity | 7,575 | 0 |
| method Payments received from the repayment of shares of companies accounted for using the equity method |
9,595 | 0 |
| Payments for loans to companies with participation interest | -123 | -855 |
| Payments received from the repayment of other loans | 39,019 | 16,500 |
| Payments for other loans | 0 | -51 |
| Payments received from the disposal of consolidated companies and other business units | 25,885 | 0 |
| Payments for the disposal of consolidated companies and other business units | -18,973 | -494 |
| Payments for the acquisition of consolidated companies and other business units | -45,231 | 0 |
| Payments received for the acquisition of consolidated companies and other business | ||
| units | 0 | 1 |
| Cash flow from investing/divesting activities | 62,356 | -34,077 |
| Repayment of loans | -103,450 | -81,750 |
| Repayment of leasing liabilities | -5,221 | -5,567 |
| Interest paid | -153 | -104 |
| Payments of profit shares to non-controlling interests | -274 | -274 |
| Payments of dividends to shareholders | -28,316 | 0 |
| Payments for buy-backs of own shares | -18,895 | -8,000 |
| Cash flow from financing activities | -156,308 | -95,695 |
| Change in cash and cash equivalents | -51,881 | -128,983 |
| Cash and cash equivalents as at 01.01. | 341,260 | 495,454 |
| Effects of changes in foreign exchange rates on cash and cash equivalents | -891 | 2,101 |
| Cash and cash equivalents as at 30.06. | 288,487 | 368,572 |
| Retained | Remeasurements of | Revaluation | Equity of the | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| earnings | Currency | defined benefit | reserve | Consolidated | shareholders of | Equity of non | ||||
| Capital | (legal | translation | plans according to | according to | unappropriated | the parent | controlling | |||
| EUR k | Share capital | reserve | reserves) | difference | IAS 19 | IFRS 9 | profit | company | interests | Total |
| As at 01.01.2021 | 89,683 | 129,751 | 505 | -7,944 | -5,457 | 130,196 | 900,507 | 1,237,240 | 32,265 | 1,269,505 |
| Net profit for the period | 0 | 0 | 0 | 0 | 0 | 0 | 25,258 | 25,258 | 1,355 | 26,613 |
| Other comprehensive income | 0 | 0 | 0 | 7,142 | 0 | 14,330 | 0 | 21,472 | 116 | 21,588 |
| Total comprehensive Income | 0 | 0 | 0 | 7,142 | 0 | 14,330 | 25,258 | 46,730 | 1,471 | 48,201 |
| Payout of profit shares to non-controlling | ||||||||||
| interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -274 | -274 |
| Share buy-back | -335 | -7,307 | 0 | 0 | 0 | 0 | 0 | -7,642 | 0 | -7,642 |
| As at 30.06.2021 | 89,348 | 122,444 | 505 | -802 | -5,457 | 144,526 | 925,764 | 1,276,328 | 33,464 | 1,309,791 |
| As at 01.01.2022 | 88,620 | 89,831 | 505 | 2,317 | 99 | 179,716 | 921,720 | 1,282,809 | 35,694 | 1,318,503 |
| Net profit of the period | 0 | 0 | 0 | 0 | 0 | 0 | 13,408 | 13,408 | 1,639 | 15,047 |
| Other comprehensive income | 0 | 0 | 0 | -2,269 | -252 | 16,338 | 0 | 13,817 | 58 | 13,874 |
| Total comprehensive Income | 0 | 0 | 0 | -2,269 | -252 | 16,338 | 13,408 | 27,225 | 1,696 | 28,921 |
| Dividend distribution to shareholders in cash | 0 | 0 | 0 | 0 | 0 | 0 | -28,316 | -28,316 | 0 | -28,316 |
| Payout of profit shares to non-controlling | ||||||||||
| interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -441 | -441 |
| Share buy-back | -1,212 | -18,441 | 0 | 0 | 0 | 0 | 0 | -19,652 | 0 | -19,652 |
| Disposal of shares | 831 | 15,207 | 0 | 0 | 0 | 0 | 0 | 16,038 | 0 | 16,038 |
| As at 30.06.2022 | 88,240 | 86,597 | 505 | 48 | -153 | 196,054 | 906,813 | 1,278,104 | 36,949 | 1,315,053 |
PATRIZIA SE (hereinafter also referred to as PATRIZIA or the Group) is a listed European 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 2022, 1,009 employees (FTE) serve its clients across 28 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. As a result, client preferences and requirements can be met extensively in a client-centric manner. Its clients include institutional and semi-professional investors such as insurance firms, pension providers and sovereign wealth funds from Germany, Europe, the US and Asia, as in addition to private investors. PATRIZIA develops bespoke products for its clients in line with their individual return expectations, diversification objectives and risk styles.
The interim consolidated financial statements of PATRIZIA for the first half of 2022 (1 January to 30 June 2022) 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.
In the opinion of the Group's management, the present unaudited interim consolidated financial statements as at 30 June 2022 contain all necessary information to ensure a true and fair view of the company's performance and financial position in the reporting period. A review according to IDW PS 900 has been performed by the auditor. A certificate was not issued in accordance with the engagement. The results achieved in the first six months of 2022 are not necessarily an indicator of future results or an overall result to be expected for the financial year 2022 as a whole.
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 2021 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 2021 in the 2021 PATRIZIA Group Annual Report.
New standards and interpretations to be applied as of 1 January 2022 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's figures are shown in thousands of Euro (EUR k). It should be noted that differences may occur in the use of rounded amounts and percentages due to commercial rounding.
All subsidiaries are included in the interim consolidated financial statements of PATRIZIA. The group of subsidiaries includes all companies that are controlled by PATRIZIA. In addition to the parent company, the consolidated group includes 128 subsidiaries (31 December 2021: 119). They are included in the interim consolidated financial statements in accordance with the rules of full consolidation.
In addition, there are 7 equity investments (31 December 2021: 5), listed below, that are accounted for using the equity method in the consolidated financial statements.
| 30.06.2022 | 31.12 2021 | |||
|---|---|---|---|---|
| Equity | Carrying amounts | Carrying amounts | ||
| Entity | Head office | Investment | EUR k | EUR k |
| PATRIZIA WohnModul I SICAV-FIS | Luxemburg | 10.10% | 873 | 18,203 |
| Evana AG | Saarbrücken | 18.75% | 2,830 | 3,116 |
| Cognotekt GmbH | Köln | 35.67% | 455 | 455 |
| control.IT Unternehmensberatung GmbH | Bremen | 10.00% | 1,497 | 1,526 |
| ASK PATRIZIA (GQ) LLP | Manchester | 50.00% | 438 | 447 |
| PATRIZIA German Residental Fund IV | Hamburg | 35.79% | 25,542 | 0 |
| PATRIZIA MBK FUND MANAGEMENT PTY LTD | Sydney | 50.00% | 64 | 0 |
Furthermore, there are holdings of 28.3% in the limited liability capital of a project development company (legal form: GmbH & Co. KG) and 30.0% in the associated general partner GmbH. There is no significant influence over this company as it cannot be managed or significantly influenced on account of company law regulations and there is no right to make appointments to its executive bodies. The shares in this project development company are measured at fair value through other comprehensive income (FVTOCI).
51 companies (31 December 2021: 51) have not been included in the consolidated group as at the end of the reporting period as they have only minor or no business operations and are immaterial to the Group and a true and fair view of its financial position and performance.
The number of Group companies included in the consolidated financial statements developed as follows in the reporting period:
Transactions material to the Group are explained below under business combinations, disposals and intragroup restructuring.
| As at 01.01.2022 | 119 |
|---|---|
| Companies acquired | 7 |
| Companies founded | 7 |
| Companies deconsolidated | 5 |
| As at 30.06.2022 | 128 |
Whitehelm Capital
By way of a purchase agreement dated 13 September 2021, PATRIZIA has acquired the entire issued share capital of Whitehelm Capital Pty Limited ("Whitehelm Capital"), one of the world's most experienced infrastructure investment managers and strategy advisers. The closing of the transaction took place on 1 February 2022.
With offices in London, Sydney and Canberra, Whitehelm Capital manages infrastructure AUM of EUR 5.5bn with additional commitments in place.
The transaction fully complements and enhances PATRIZIA's existing product offering and significantly expands its presence in the Asia Pacific region.
The initial consolidation was carried out as at 1 February 2022.
Within the share deal,100% of the shares of Whitehelm Capital were acquired. The following fair values regarding assets and liabilities have been identified based on the preliminary Purchase Price Agreement ("PPA").
| EUR k | |
|---|---|
| Other intangible assets | 25,878 |
| Rights of use | 513 |
| Equipment | 276 |
| Associated companies accounted using the equity method | 85 |
| Participations | 1,256 |
| Other non-current assets | 2,765 |
| Deferred taxes | 1,477 |
| Total non-current assets | 32,251 |
| Current tax assets | 2 |
| Current receivables and other current assets | 7,903 |
| Cash and cash equivalents | 3,539 |
| Total current assets | 11,443 |
| Total assets | 43,694 |
| Deferred tax liabilities | 7,763 |
| Non-current liabilities | 1,323 |
| Leasing liabilities | 187 |
| Total non-current liabilities | 9,274 |
| Other provisions | 1,222 |
| Current liabilities | 12,599 |
| Tax liabilities | 307 |
| Total current liabilities | 14,128 |
| Total liabilities | 23,402 |
| Net assets | 20,292 |
| Goodwill | 162,105 |
| Total consideration paid | 182,397 |
The finalisation of the purchase price allocation will take part in the measurement period under IFRS 3.
The resulting preliminary goodwill from the acquisition amounts to EUR 162,944k. The acquisition rationale includes potentials arising from the expansion of business areas & products, the presence in geographical markets, future earnings prospects as well as synergy potentials.
The goodwill will not be deductible for tax purposes in future periods.
The consideration paid (without transaction costs) of EUR 182,397k consists of cash and cash equivalents of approx. EUR 48,770k, treasury shares of approx. EUR 16,038k as well as a contingent consideration (earn-out) of approx. EUR 117,590k. The 830,876 treasury shares were measured at their closing price (XETRA) of EUR 19.30 as at the acquisition date.
In the Fiscal Year 2022, the transaction costs already incurred in the amount of EUR 1,665k (Fiscal Year 2021: EUR 3.649k) were recognised through profit and loss and reported under other operating expenses.
| EUR k | |
|---|---|
| Consideration paid in the form of cash | 48,770 |
| Less cash acquired | -3,539 |
| Net cash outflow | 45,231 |
From the net profit for the period as at 30 June 2022, EUR -2,380k is attributable to the acquired Whitehelm Capital subsidiaries. Of the revenue in the first half of 2022, EUR 8,283k results from the operations of the acquired subsidiaries and mainly relates to service fee income.
If the business combination had taken place as at 1 January 2022, the revenues of PATRIZIA would have amounted to EUR 160,133k and its net profit for the period EUR 14,571k as at 30 June 2022.
The companies listed below left the PATRIZIA consolidated group with income from deconsolidation of EUR 18,087k (H1 2021: EUR 63k) and an expense from deconsolidation of EUR -2,122k (H1 2021: EUR -608k) in the reporting period.
| EUR k | H1 2022 |
|---|---|
| PATRIZIA GrundInvest Erfurt Stadtmitte GmbH & Co. geschlossene Investment-KG | 95 |
| PATRIZIA GrundInvest Heidelberg Bahnstadt GmbH & Co. geschlossene Investment-KG | 226 |
| Silver Swan C 2018 S.à r.l. | 17,765 |
| PATRIZIA GrundInvest Objekt Erfurt GmbH & Co. KG | -940 |
| PATRIZIA GrundInvest Objekt Heidelberg GmbH & Co. KG | -1,183 |
| Total | 15,965 |
In the reporting period there were no internal restructuring activities recognised within the Group.
These interim consolidated financial statements are generally based on the same consolidation methods that were applied to the consolidated financial statements for the 2021 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 2021.
The table below shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities that are not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Financial assets and liabilities 30.06.2022
| Carrying amounts | Fair value | ||||||
|---|---|---|---|---|---|---|---|
| Mandatory | FVTOCI equity |
Financial assets at amortised |
Other financial |
||||
| EUR k | FVTPL | instruments | cost | liabilities | Level 1 | Level 2 | Level 3¹ |
| Financial assets at fair value | |||||||
| Participations | 654,918 | x | |||||
| Other non-current financial assets | 10,500 | x | |||||
| Other Loans | 5,414 | x | |||||
| 15,913 | 654,918 | ||||||
| Financial assets not measured at fair value | |||||||
| Other loans | 18,055 | ||||||
| Trade receivables and other financial assets | 317,135 | ||||||
| Cash and Cash Equivalents | 288,487 | ||||||
| 623,677 | |||||||
| Financial liabilities not measured at fair value | |||||||
| Financial liabilities (bank, mortgage and bonded loans) | 175,337 | ||||||
| Trade payables | 4,371 | ||||||
| Liabilities from services purchased before the end of the reporting period |
23,919 | ||||||
| Contractual liabilities of prepayments from property sales |
-45 | ||||||
| Liabilities from settled performance fees owed attributable to future periods |
2,006 | ||||||
| Other liabilities | 162,241 | ||||||
| 367,829 |
1 see chapter 3.1.3 assessment of the fair value
| Carrying amounts | Fair value | ||||||
|---|---|---|---|---|---|---|---|
| EUR k | Mandatory FVTPL |
FVTOCI equity instruments |
Financial assets at amortised cost |
Other financial liabilities |
Level 1 | Level 2 | Level 3¹ |
| Financial assets at fair value | |||||||
| Participations | 633,799 | x | |||||
| Other non-current financial assets | 10,440 | x | |||||
| Other Loans | 5,414 | x | |||||
| Securities | 15,742 | x | |||||
| 31,595 | 633,799 | ||||||
| Financial assets not measured at fair value | |||||||
| Other loans | 18,061 | ||||||
| Trade receivables and other financial assets | 434,229 | ||||||
| Cash and Cash Equivalents | 341,260 | ||||||
| 793,549 | |||||||
| Financial liabilities not measured at fair value | |||||||
| Financial liabilities (bank, mortgage and bonded loans) | 405,095 | ||||||
| Trade payables | 2,706 | ||||||
| Liabilities from services purchased before the end of the reporting period |
29,645 | ||||||
| Contractual liabilities of prepayments from property sales |
201 | ||||||
| Liabilities from settled performance fees owed attributable to future periods |
588 | ||||||
| Other liabilities | 48,744 | ||||||
| 486,978 |
Participations showed the following development in the business year:
| 30.06.2022 | 31.12.2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| Dawonia | Dawonia Carry |
Other participations |
Total carrying amount |
Dawonia | Dawonia Carry |
Other participations |
Total carrying amount |
|
| As at 01.01. | 177,418 | 416,229 | 40,329 | 633,976 | 165,108 | 379,170 | 30,283 | 574,561 |
| Additions | 0 | 0 | 5,142 | 5,142 | 0 | 0 | 8,180 | 8,180 |
| Changes in the consolidated |
||||||||
| group | 0 | 0 | 1,245 | 1,245 | 0 | 0 | 0 | 0 |
| Disposals | 0 | 0 | -1,477 | -1,477 | 0 | -3,967 | -2,072 | -6,039 |
| Positive changes in market value |
3,290 | 10,966 | 4,913 | 19,170 | 12,310 | 41,025 | 4,403 | 57,739 |
| Negative changes in market value |
0 | -2,216 | -427 | -2,643 | 0 | 0 | -922 | -922 |
| Foreign exchange differences |
0 | 0 | -318 | -318 | 0 | 0 | 457 | 457 |
| Closing Balance | 180,708 | 424,979 | 49,407 | 655,094 | 177,418 | 416,229 | 40,329 | 633,976 |
PATRIZIA holds an interest in a very attractive residential real estate portfolio via Dawonia GmbH (Dawonia – see table above). With around 30,000 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, Nuremberg, Erlangen, Regensburg and Würzburg. Dawonia is meanwhile also active outside Bavaria, for example in the state of Hesse.
Furthermore, PATRIZIA holds an interest in OSCAR Lux Carry S.C.S (Dawonia Carry – see table above). This company embodies an entitlement under company law to a variable share of PATIRZIA´s profits in connection with the Dawonia investment. Regarding contractual regulations, a repayment of the investment may arise from 2023 onwards.
The result from participations of EUR 27,200k in the reporting period (H1 2021: EUR 28,587k) stems from the participations in Dawonia GmbH, TRIUVA / IVG Logistik and from the closed-end funds business for private and semi-professional investors.
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| Performance-based shareholder | |||||
| remuneration | 0 | 0 | 20,408 | 21,969 | -7.1% |
| Services provided as shareholder | |||||
| contributions | 2,353 | 2,353 | 4,706 | 4,706 | 0.0% |
| Return on equity employed | 1,165 | 1,101 | 2,086 | 1,912 | 9.1% |
| Total | 3,518 | 3,454 | 27,200 | 28,587 | -4.9% |
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 non observable input factors and the valuation at fair value |
|---|---|---|---|
| Equity investments | 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% - 34.29%), important assessment basis: The fair value of the net assets 2022 of the participations (EUR 0m - EUR 3,585m) |
Estimated fair value would increase (decrease), if the assessment basis increase (decrease) |
| Non-current loans | Since these are convertible loans, the valuation model considers the fair value of the net assets of the borrowers |
The fair value of the net assets: (EUR 4.6m - EUR 12.3m) |
Estimated fair value would increase (decrease), if the assessment basis increase (decrease) |
A 10% increase (reduction) in the basis of measurement for equity investments with all other inputs remaining constant would result in an increase (reduction) of EUR 84,990k (2021: EUR 80,621k).
An increase (reduction) of net assets would result in an increase (reduction) of EUR 2,146k (2021: EUR 2,146k) in the fair value of long-term loans.
The following table shows the reconciliation from opening to closing level 3 fair values.
| EUR k | Equity investments | Convertible loans | Securities |
|---|---|---|---|
| As at 01.01.2022 | 633,799 | 15,853 | 15,742 |
| Profit/loss, including in the other comprehensive income (IFRS 9) |
|||
| changes of the fair value | 16,527 | 0 | 156 |
| Profit/loss, including in the net profit for the period | |||
| changes of the fair value | 0 | 0 | 0 |
| Interest cover | 0 | 0 | 0 |
| Additions in the financial year | 5,142 | 0 | 0 |
| Disposals in the financial year | -1,477 | 0 | -15,898 |
| Changes in the consolidated group | 1,245 | 60 | 0 |
| Foreign exchange differences | -318 | 0 | 0 |
| As at 30.06.2022 | 654,918 | 15,913 | 0 |
| EUR k | Equity investments | Convertible loans | Securities |
|---|---|---|---|
| As at 01.01.2021 | 574,467 | 17,084 | 0 |
| Profit/loss, including in the other comprehensive income (IFRS 9) |
|||
| changes of the fair value | 52,850 | 0 | 0 |
| Profit/loss, including in the net profit for the period | |||
| changes of the fair value | 0 | 0 | 153 |
| Interest cover | 0 | -23 | 0 |
| Additions in the financial year | 8,096 | 0 | 20,546 |
| Disposals in the financial year | -2,071 | -1,208 | -4,957 |
| Foreign exchange differences | 457 | 0 | 0 |
| As at 31.12.2021 | 633,799 | 15,853 | 15,742 |
| EUR k | 30.06.2022 | 31.12.2021 |
|---|---|---|
| Financial assets and liabilities, which are mandatory measured at FVTPL | 188 | -143 |
| Financial assets, which are measured at amortised cost | 1,030 | 662 |
| Financial liabilities, which are measured at amortised cost | -3,288 | -5,676 |
| Equity investments, which are measured at FVTOCI (without recycling)¹ | 16,455 | 49,561 |
1 Amount after tax
Dividend income from equity investments measured at fair value through other comprehensive income amounted to EUR 27,436k in the financial year (H1 2021: EUR 28,587k). The dividends received result exclusively from participations still held at the end of the reporting period. The fair value of equity investments disposed of as at the date of disposal is EUR 1,477k (2021: EUR 2,071k).
No gains were realised in the statement of comprehensive income in connection with the final disposal of equity investments.
Securities decreased by 99.9% in the reporting period due to the sale of the temporarily held shares in the PATRIZIA Gewerbe-Immobilien Deutschland IV fund.
Current receivables and other current assets are composed as follows:
Current receivables and other current assets
| EUR k | 30.06.2022 | 31.12.2021 |
|---|---|---|
| Trade receivables | 152,764 | 162,157 |
| Receivables from services | 75,399 | 107,522 |
| Receivables from property sales | 29 | 42 |
| Other | 77,336 | 54,593 |
| Other current assets | 168,221 | 276,900 |
| Term deposits | 150,869 | 210,831 |
| Receivables from other investees and investors | 3,293 | 4,306 |
| Other | 14,060 | 61,763 |
| Closing Balance | 320,986 | 439,056 |
Other trade receivables essentially include accrued purchase and performance fees that were earned at the end of the year and will become cash in later periods.
Due to the term of the time deposits of EUR 150,869k (31 December 2021: EUR 210,831k) of more than 3 months, these are reported in the balance sheet under current receivables and other current assets instead of bank balances and cash in hand.
The item "Other" essentially includes loan receivables, deposits, creditors with debit balances and accruals and deferrals. Short-term loans granted amounting to EUR 39,059k as at 31 December 2021 represent the largest item and were repaid in the reporting period. Loans are accounted at amortised cost.
Receivables and other current assets have a remaining term of less than one year. The carrying amount of the receivables and other current assets corresponds to their fair value.
Cash and cash equivalents comprise cash and short-term bank deposits held by the Group. The carrying amount of these assets corresponds to their fair value.
Cash funds were invested in short-term, money market securities in the context of active liquidity management. These are shown separately in the balance sheet. An amount of EUR 150,869k (31 December 2021: EUR 210,831k) was invested in short-term term deposits with a maturity of more than 3 months. These term deposits are reported in the consolidated balance sheet under current receivables and other current assets. Furthermore, cash and cash equivalents of EUR 38.1m in total must be permanently retained for asset management companies and closed-end funds in order to comply with the relevant regulatory requirements.
| EUR k | 30.06.2022 | 31.12.2021 |
|---|---|---|
| Cash and cash equivalents | 288,487 | 341,260 |
| Term deposits | 150,869 | 210,831 |
| Liquidity | 439,356 | 552,090 |
| Regulatory reserve for investment management companies | -38,103 | -37,548 |
| Liquidity in closed-end funds business property companies | -88 | -1,859 |
| Available liquidity | 401,164 | 512,683 |
The maturity profile of financial liabilities is as follows:
| EUR k | Carrying | Total | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|---|---|---|
| Bank loans | amount 17,337 |
amount 17,600 |
17,600 | 0 | 0 | 0 | 0 | 0 |
| Bonded loans | 158,000 | 168,308 | 0 | 2,914 | 91,914 | 1,490 | 1,490 | 70,499 |
| Other financial liabilities | 17,711 | 18,715 | 0 | 7,465 | 0 | 0 | 0 | 11,250 |
| Total financial liablilities | ||||||||
| undiscounted | 193,048 | 204,623 | 17,600 | 10,379 | 91,914 | 1,490 | 1,490 | 81,749 |
| EUR k | Carrying amount |
Total amount |
2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|---|---|---|
| Bank loans | 171,095 | 181,081 | 181,081 | 0 | 0 | 0 | 0 | 0 |
| Bonded loans | 234,000 | 248,087 | 79,778 | 2,914 | 91,914 | 1,490 | 1,490 | 70,499 |
| Other financial liabilities | 17,711 | 18,715 | 0 | 7,465 | 0 | 0 | 0 | 11,250 |
| Total financial liabilities | ||||||||
| undiscounted | 422,806 | 447,882 | 260,859 | 10,379 | 91,914 | 1,490 | 1,490 | 81,749 |
In the 2017 fiscal year, PATRIZIA issued a bonded loan on the capital market for a total of EUR 300,000k. The target volume of originally planned EUR 100,000k was oversubscribed several times. The inflowing financial resources represented an additional liquidity reserve as part of the growth strategy (M&A as part of expansion) or to take advantage of strategic co- and principal investment opportunities. The bonded loan had terms of 5, 7 and 10 years and fixed and variable interest rates.
In the first half of 2022 a pro rata repayment of the bonded loan in the amount of EUR 76.0m was made.
The short-term bank loans of EUR 17.3m relate to temporary interim financing.
Financial result
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| Interest on bank deposits and loans | 116 | 403 | 363 | 660 | -45.0% |
| Interest from participations | 94 | 87 | 172 | 165 | 4.2% |
| Interest from taxes | 0 | 1 | 2 | 2 | 7.7% |
| Other interest | 30 | -70 | 115 | 124 | -7.6% |
| Financial income | 241 | 421 | 652 | 952 | -31.4% |
| Interest on overdraft facilities and loans | -1,139 | -1,291 | -2,446 | -2,529 | -3.3% |
| Interest expenses from taxes | -521 | -15 | -525 | -15 | >1,000.0% |
| Interest expenses from participations | -107 | -84 | -214 | -182 | 18.0% |
| Interest expenses - Leasing IFRS 16 | -74 | -92 | -153 | -104 | 46.9% |
| Other financial expenses | -456 | -30 | -640 | -162 | 294.7% |
| Financial expenses | -2,297 | -1,511 | -3,977 | -2,991 | 32.9% |
| Result from currency translation | -141 | -838 | -274 | -1,338 | -79.5% |
| Financial result | -2,198 | -1,929 | -3,599 | -3,378 | 6.6% |
Financial income of EUR 652k (H1 2021: EUR 952k) is attributable to financial assets that were valued at amortised cost and in accordance with FVTPL and are considered in accordance with the effective interest rate. The remaining financial income mainly results from receivables relating to staff.
The financial expenses of EUR 3,977k (H1 2020: EUR 2,991k) are attributable to financial liabilities measured at amortised cost and recognised at effective interest.
The interest on overdrafts and loans mainly contains interest on borrower's note loans in the amount of EUR 1,846k (H1 2021: EUR 1,943k).
The other financial expenses mainly relate to interest from the compounding of pension obligations.
In the first half of 2022, the currency result was EUR -274k (H1 2021: EUR -1,338k).
Goodwill
| 31.12.2021 | ||||||
|---|---|---|---|---|---|---|
| EUR k | Cost | Amortisation | Carrying amounts |
Cost | Amortisation | Carrying amounts |
| As at 01.01. | 216,444 | 0 | 216,444 | 212,353 | 0 | 212,353 |
| Additions | 0 | -5,641 | -5,641 | 0 | 0 | 0 |
| Changes in the consolidated group |
162,105 | 0 | 162,105 | 0 | 0 | 0 |
| Disposals | 0 | 0 | 0 | 0 | 0 | 0 |
| Foreign exchange differences |
-1,720 | 0 | -1,720 | 4,091 | 0 | 4,091 |
| Closing Balance | 376,829 | -5,641 | 371,189 | 216,444 | 0 | 216,444 |
The change in total goodwill compared to 31 December 2021 is mainly due to the derivative goodwill of EUR 162,105k arising from the acquisition of Whitehelm Capital. The main reasons leading to this acquisition are the expansion of business areas & products, the presence in new geographical markets, future earnings prospects as well as synergy potentials. The corresponding purchase price allocation is to be classified as preliminary at the time of publication and will be finalised during the measurement period in accordance with IFRS 3. The purchase price consists of cash payments, transfer of treasury shares as well as an earn-out liability.
As at 30 June 2022, there was a goodwill impairment of EUR 5,641k occurring with the cash-generating unit BrickVest. The impairment results from strategic decisions of the management.
Other changes were driven by exchange rate changes of EUR -1,720k (31 December 2021: EUR -3,580k). These are mainly due to the exchange rate development of the British pound.
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 2022, there were no events that would justify an impairment test and the resulting need for impairment.
Other intangible assets
| 30.06.2022 | 31.12.2021 | |||||
|---|---|---|---|---|---|---|
| EUR k | Cost | Amortisation | Carrying amounts |
Cost | Amortisation | Carrying amounts |
| As at 01.01. | 227,492 | -135,750 | 91,742 | 222,898 | -116,761 | 106,137 |
| Additions | 0 | -6,738 | -6,738 | 208 | -15,882 | -15,674 |
| Changes in the consolidated group |
25,878 | 0 | 25,878 | 0 | 0 | 0 |
| Disposals | 0 | 0 | 0 | 0 | 0 | 0 |
| Foreign exchange differences |
-1,580 | 1,284 | -296 | 4,386 | -3,107 | 1,279 |
| Closing Balance | 251,791 | -141,204 | 110,587 | 227,492 | -135,750 | 91,742 |
As at 30 June 2022, other intangible assets increased by EUR 25,878k mainly due to disclosed hidden reserves of the fund management contracts as part of the purchase price allocation for Whitehelm Capital.
In the first half of 2022, write-downs were made on fund management contracts totaling EUR 6,332k (H1 2021: EUR 8,077k) and on other rights and assets totaling EUR 406k (H1 2021: EUR 40k). In the reporting period impairment losses of other rights and assets of EUR 172k (H1 2021: EUR 0k) were recognised.
The negative currency effects of EUR -296k (31.12.2021: EUR 1,279k) mainly result from the currency translation of the fund management contracts of PATRIZIA PROPERTY INVESTMENT MANAGERS LLP as at the reporting date.
Participations in companies accounted for using the equity method
| 30.06.2022 | 31.12.2021 | |||||
|---|---|---|---|---|---|---|
| EUR k | Cost | At equity adjustment |
Carrying amounts |
Cost | At equity | adjustment Carrying amounts |
| As at 01.01. | 26,819 | -3,072 | 23,747 | 25,486 | 6,871 | 32,357 |
| Additions | 25,155 | 90 | 25,245 | 35 | 3,473 | 3,509 |
| Changes in the consolidated group |
89 | 0 | 89 | 0 | 0 | 0 |
| Disposals | -9,595 | -7,575 | -17,170 | -2,451 | -9,696 | -12,147 |
| Foreign exchange differences |
-9 | 0 | -9 | 29 | 0 | 29 |
| Closing Balance | 42,459 | -10,557 | 31,902 | 23,100 | 647 | 23,747 |
The increase in participations in companies accounted for using the equity method resulted from the new investment German Residential Fund IV in the amount of EUR 25,155k. At the same time, PATRIZIA WohnModul I SICAV-FIS made a distribution of EUR 7,575k as well as a capital repayment of EUR 9,595k.
The earnings from companies accounted for using the equity method is made up as follows:
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| PATRIZIA WohnModul I SICAV-FIS | 0 | 1,472 | 0 | 1,825 | -100.0% |
| Evana AG | -286 | -432 | -286 | -432 | -33.7% |
| Cognotekt GmbH | -90 | -217 | -90 | -217 | -58.5% |
| control.IT Unternehmensberatung GmbH | -29 | 69 | -29 | 69 | -142.0% |
| PATRIZIA German Residental Fund IV | 241 | 0 | 241 | 0 | / |
| Whitehelm MBK Fund Management Pty Ltd | -25 | 0 | -25 | 0 | / |
| Total | -189 | 892 | -189 | 1,245 | -115.2% |
The decline in earnings from companies accounted for using the equity method is mainly attributable to "PATRIZIA Wohnmodul I SICAV-FIS", due to the ongoing strategic unwinding of the underlying portfolio.
Inventories include assets held for sale in the normal course of business.
| EUR k | 30.06.2022 | 31.12 2021 |
|---|---|---|
| Properties intended for sale | 25,159 | 154,000 |
| Properties in the development phase | 2,582 | 15,795 |
| Total | 27,741 | 169,796 |
The change in inventories of EUR -142,054k results primarily from the deconsolidation regarding the temporary warehousing of properties for the purpose of placement via public funds as well as the profitable and strategically aligned disposal of one of the last remaining balance sheet properties ("Properties in the development phase") in the UK.
We refer to the statement of changes in equity for information on changes in equity.
The share capital of the company amounts, after offsetting treasury shares in the amount of EUR 4,112k or 4,111,900 no-parvalue shares (31 December 2021: EUR 3,731k), to EUR 88,240k (31 December 2021: EUR 88,620k) as at the end of the reporting period and was divided into 88,239,576 no-par-value registered shares.
The capital reserves reduced by 3,234k from EUR 89,831k to EUR 86,597k as at 30 June 2022. The capital reserve is reduced due to the share buyback programme. The disposal and transfer of shares in connection with the Whitehelm Capital M&A transaction had a partially offsetting effect here.
In the reporting period the total number of treasury shares increased to 4,111,900 and their total value up to EUR 76,686.
| Number of shares | Price per share in EUR¹ | Total Value in EUR | |
|---|---|---|---|
| As at 01.01.2022 | 3,731,301 | 73,102,645 | |
| Share buyback programme | 1,211,575 | 16.19 | 19,620,973 |
| Disposal and transfer of shares | 830,976 | 19.30 | 16,037,837 |
| As at 30.06.2022² | 4,111,900 | 76,685,781 |
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
There were non-controlling interests of EUR 36,949k as at 30 June 2022 (31 December 2021: EUR 35,694k).
A profit share of EUR 1,639k (H1 2021: EUR 1,355k) was allocated to non-controlling interests in the reporting period.
As at 30 June 2022, profit shares of EUR 441k (H1 2021: EUR 274k) had been withdrawn by non-controlling interests.
A total of EUR 147k (H1 2021: EUR -4k) in connection with the remeasurement of financial instruments pursuant to IFRS 9 are reported in the H1 2022 financial year.
Non-current liabilities of EUR 144,087k (31 December 2021: EUR 28,515k) essentially consist of the earn-out liability in connection with the Whitehelm Capital M&A transaction of EUR 117,590k. Other positions are the long-term component of the management participation model, the TRIUVA guaranteed dividend to non-controlling interests and other non-current financial liabilities.
Tax liabilities include obligations for income taxes, VAT and other types of taxes.
The Income taxes essentially comprise EUR 13,627k (31 December 2021: EUR 15,484k) of corporation and trade tax on the profits of German and non-German subsidiaries. In addition, obligations from VAT, wage taxes and miscellaneous other taxes were recognised in the amount of EUR 9,748k (31 December 2021: EUR 12,884k).
Deferred income tax relating to components of other comprehensive income
| 2022 | 2021 | ||||||
|---|---|---|---|---|---|---|---|
| EUR k | Before tax Tax |
Net | Before tax | Tax | Net | ||
| Profit/loss arising on the translation of the financial statements of foreign operations |
-2,340 | 0 | -2,340 | 7,262 | 0 | 7,262 | |
| Value adjustments resulting from equity | |||||||
| instruments measured including capital gains (IFRS 9) |
19,026 | -2,541 | 16,485 | 16,004 | -1,678 | 14,326 | |
| Value adjustments resulting from remeasurements of defined benefit plans (IAS |
|||||||
| 19) | -270 | 0 | -270 | 0 | 0 | 0 | |
| Total | 16,415 | -2,541 | 13,874 | 23,266 | -1,678 | 21,588 |
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| Current income taxes | -8,843 | -6,776 | -12,958 | -15,436 | -16.1% |
| Deferred taxes | 2,232 | 1,078 | 1,607 | 2,475 | -35.0% |
| Income tax | -6,610 | -5,698 | -11,351 | -12,961 | -12.4% |
The deferred taxes in the income statement essentially resulted from temporary differences, most of which were caused by amortisation of fund management contracts.
| EUR k | Germany | Luxembourg | United Kingdom | Rest of world | Total |
|---|---|---|---|---|---|
| Q2 2022 | |||||
| Revenues from management services | 51,595 | 7,799 | 11,087 | 6,003 | 76,484 |
| Management fees | 35,153 | 6,785 | 11,513 | 5,952 | 59,403 |
| Performance fees | 7,922 | 0 | -32 | 2 | 7,892 |
| Transaction fees | 8,519 | 1,014 | -394 | 49 | 9,188 |
| Proceeds from the sale of principal | |||||
| investments | 279 | -128 | 0 | 0 | 151 |
| Rental revenues | 983 | 183 | 0 | 340 | 1,506 |
| Revenues from ancillary costs | 12 | 78 | 0 | 0 | 90 |
| Other | -1,217 | 246 | 166 | 119 | -686 |
| Revenues | 51,651 | 8,179 | 11,253 | 6,462 | 77,545 |
| Q2 2021 | |||||
| Revenues from management services | 49,396 | 20,576 | 6,893 | 2,579 | 79,444 |
| Management fees | 36,057 | 4,448 | 7,705 | 2,579 | 50,788 |
| Performance fees | 2,141 | 12,080 | 1 | 0 | 14,222 |
| Transaction fees | 11,199 | 4,048 | -814 | 0 | 14,433 |
| Proceeds from the sale of principal investments |
-3 | 0 | 0 | 0 | -3 |
| Rental revenues | 882 | 63 | 1 | 242 | 1,188 |
| Revenues from ancillary costs | 80 | 23 | 187 | 0 | 290 |
| Other | 139 | 75 | 185 | 32 | 431 |
| Revenues | 50,495 | 20,737 | 7,265 | 2,853 | 81,350 |
| H1 2022 | |||||
| Revenues from management services | 91,563 | 13,501 | 21,084 | 10,379 | 136,527 |
| Management fees | 65,850 | 13,947 | 21,590 | 10,328 | 111,714 |
| Performance fees | 14,845 | -1,418 | -32 | 2 | 13,397 |
| Transaction fees | 10,868 | 972 | -473 | 49 | 11,416 |
| Proceeds from the sale of principal investments |
272 | 17,806 | 0 | 0 | 18,079 |
| Rental revenues | 2,765 | 382 | 0 | 693 | 3,840 |
| Revenues from ancillary costs | 24 | 89 | 0 | 0 | 113 |
| Other | -1,205 | 406 | 264 | 454 | -81 |
| Revenues | 93,419 | 32,184 | 21,349 | 11,525 | 158,476 |
| H1 2021 | |||||
| Revenues from management services | 84,092 | 28,778 | 20,284 | 4,695 | 137,849 |
| Management fees | 64,002 | 11,429 | 19,206 | 4,695 | 99,333 |
| Performance fees | 4,033 | 13,259 | 174 | 0 | 17,466 |
| Transaction fees | 16,057 | 4,090 | 903 | 0 | 21,050 |
| Proceeds from the sale of principal investments |
-32 | 1 | 0 | 0 | -30 |
| Rental revenues | 890 | 59 | 1 | 242 | 1,191 |
| Revenues from ancillary costs | 80 | 53 | 317 | 0 | 449 |
| Other | 158 | 110 | 425 | 33 | 725 |
| Revenues | 85,188 | 29,000 | 21,027 | 4,970 | 140,185 |
The geographical allocation is based on the registered office of the unit performing the services.
Revenue from contracts with clients that relates to transaction fees (for acquisitions and disposals) qualifies as revenue recognised at a point in time. Ongoing management fees are classified as revenue recognised over time.
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 |
|---|---|---|---|---|
| Transferred products/services at a period of time | 17,232 | 28,653 | 42,891 | 38,486 |
| Transferred products/services over a period of time | 58,807 | 51,509 | 111,745 | 100,508 |
| Revenues from client contracts | 76,039 | 80,162 | 154,637 | 138,993 |
Other operating income essentially relates to:
Other operating income
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| Income from discontinued obligations | 4,375 | 803 | 4,475 | 1,005 | 345.3% |
| Income from payments in kind | 253 | 222 | 482 | 437 | 10.1% |
| Insurance compensation | 7 | 1 | 7 | 3 | 126.2% |
| Income from reimbursement of lawyers' | |||||
| fees, court costs and transaction costs and | |||||
| compensation | 12 | 0 | 90 | 0 | >1,000.0% |
| Other | 321 | 463 | 574 | 569 | 0.8% |
| Total | 4,969 | 1,488 | 5,627 | 2,015 | 179.3% |
Income from discontinued obligations essentially results from the final settlement of bonuses and variable salaries as well as liabilities for goods and services ordered but unclaimed.
The "Cost of purchased services" item totaling EUR 9,356k (H1 2021: EUR 8,956k) essentially comprises the purchase of fund management services for label funds in the amount of EUR 7,434k (H1 2021: EUR 5,945k), for which PATRIZIA Immobilien Kapitalverwaltungsgesellschaft mbH is the service asset management company.
In order to ensure an improved presentation of the earnings situation, this item also includes transaction costs that are incurred in order to generate revenue and are generally passed on. These amount to EUR 0k in the first half of 2022 (H1 2021: EUR 3k).
Staff costs
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| Wages and salaries | 37,377 | 30,176 | 70,385 | 59,465 | 18.4% |
| of which valuation of phantom shares | -1,069 | 186 | -1,805 | -886 | 103.8% |
| Social security contributions | 6,085 | 3,491 | 12,114 | 8,619 | 40.5% |
| Total | 43,462 | 33,667 | 82,499 | 68,085 | 21.2% |
In view of the increased number of employees from 894 (30 June 2021) to 1,009 full-time equivalents (30 June 2022), staff costs increased in the first half of 2022, which can essentially be attributed to the increased number of full-time employees due to the acquisition of Whitehelm Capital.
Correlating to the reduction in the price of PATRIZIA shares, income of EUR -1,805k (H1 2021: EUR -886k) arose in connection with the remeasurement of the value of phantom shares in the reporting period.
At EUR 41.9m, other operating expenses in H1 2022 are 25.2% higher than in the same period of the previous year. Components are provided in detail as follows:
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| Tax, legal, other advisory and financial | |||||
| statement fees | 5,382 | 5,044 | 11,101 | 8,313 | 33.5% |
| IT and communication costs and cost of | |||||
| office supplies | 4,541 | 4,947 | 9,137 | 9,336 | -2.1% |
| Rent, ancillary costs and cleaning costs | 969 | 567 | 1,835 | 1,494 | 22.9% |
| Other taxes | 2,468 | 186 | 2,564 | 387 | 562.9% |
| Vehicle and travel expenses | 2,107 | 777 | 3,116 | 1,558 | 99.9% |
| Advertising costs | 1,261 | 1,190 | 1,966 | 1,920 | 2.4% |
| Recruitment and training costs and cost of | |||||
| temporary workers | 1,317 | 1,602 | 2,819 | 2,751 | 2.5% |
| Contributions, fees and insurance costs | 1,369 | 1,152 | 2,501 | 2,895 | -13.6% |
| Commission and other sales costs | 614 | 73 | 951 | 153 | 520.1% |
| Costs of management services | 559 | 37 | 1,137 | 52 | >1,000.0% |
| Indemnity/reimbursement | 315 | 3 | 315 | 12 | >1,000.0% |
| Donations | 1,183 | 1,165 | 1,190 | 1,168 | 1.8% |
| Other | 1,900 | 2,115 | 3,236 | 3,414 | -5.2% |
| Total | 23,987 | 18,859 | 41,867 | 33,453 | 25.2% |
Tax, legal, other advisory and financial statement fees in the amount of EUR 11,101k (H1 2021: EUR 8,313k) inter alia include:
The increase in other taxes is attributable to a one-off item relating to VAT payments for previous years in the Netherlands.
Vehicle and travel expenses as well as advertising costs were at 2020 and 2019 levels, respectively, following declines in travel and contact restrictions in conjunction with the Covid-19 pandemic.
Recruitment, training and temporary employment costs remained at a stable level.
The item contributions, fees and insurance costs breaks down into contributions in the amount of EUR 1,224k (H1 2021: EUR 1,334k), insurance in the amount of EUR 890k (H1 2021: EUR 1,063k) and bank fees in the amount of EUR 388k (H1 2021: EUR 499k).
The increase in costs of management services in H1 2022 mainly refers to the purchase of external project management services as part of the RED (real estate development) project Carossa.
The donations include donations to charitable organisations such as the PATRIZIA Foundation. In 2022, the management had decided to support charitable organisations annually with up to 1% of the Group's EBITDA (since 2018 with up to 1% of operating income).
Compared to the same period last year, reorganisation expenses totalled EUR 2.3m (H1 2021: EUR 1.5m). The reorganisation expenses recognised in the reporting period mainly result from the continued strategic investments to further diversify and globalise the company. These were mainly expenses for severance payments, current salaries during the release phase, material costs and consulting costs in connection with the reorganisation. Provisions from the reorganisation that are no longer required are released to the income statement.
Appreciation, amortisation and depreciation break down as follows:
Appreciation, amortisation and depreciation
| EUR k | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | Change |
|---|---|---|---|---|---|
| Amortisation of fund management contracts and licences |
2,688 | 4,058 | 6,332 | 8,077 | -21.6% |
| Amortisation of rights of use | 2,540 | 3,904 | 5,042 | 6,623 | -23.9% |
| Depreciation of software and fixed assets | 5,698 | 1,782 | 7,189 | 3,239 | 122.0% |
| Depreciation of goodwill | 5,641 | 0 | 5,641 | 0 | >1,000.0% |
| Value adjustments of loans granted to subsidiaries/ affiliated companies |
-0 | 0 | 17 | 0 | >1,000.0% |
| Amortisation of other rights and assets | 375 | 25 | 406 | 40 | 905.5% |
| Appreciation in associated participations | -90 | -648 | -90 | -648 | -86.1% |
| Total | 16,853 | 9,120 | 24,537 | 17,331 | 41.6% |
The increase in appreciation/amortisation and depreciation mainly results from the impairment of intangible assets regarding the BrickVest investment due to a strategic decision of the Group's management. These impairment losses consisted of the impairment of goodwill of EUR 5,641k and the amortisation of software of EUR 4,098k.
| EUR k | H1 2022 adjusted¹ |
H1 2021 adjusted¹ |
H1 2022 | H1 2021 |
|---|---|---|---|---|
| Share of earnings attributable to shareholders of the Group | 15,715 | 26,731 | 13,408 | 25,258 |
| Number of shares² | 88,239,576 | 89,348,162 | 88,239,576 | 89,348,162 |
| Weighted number of shares undiluted² | 88,724,941 | 89,639,793 | 88,724,941 | 89,639,793 |
| Earnings per share (undiluted) in EUR | 0.18 | 0.30 | 0.15 | 0.28 |
| Weighted number of shares diluted³ | 88,724,941 | 89,639,793 | 88,724,941 | 89,639,793 |
| Earnings per share (diluted) in EUR³ | 0.18 | 0.30 | 0.15 | 0.28 |
¹ Adjusted = without reorganisation effort
² Pending after share buyback
³ Share-based payment, If served by new shares
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 (Acquisition und 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, 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, changes in the value of investment property, reorganisation income and expenses and net income from participations (including companies accounted for using the equity method).
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 (with the exception of financial assets accounted for using the equity method), deferred tax assets and employee benefit 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 Euro (EUR k) may result in rounding differences based on the unrounded figures.
| Management | |||
|---|---|---|---|
| EUR k | Investments | Services | Group |
| Revenues | 21,552 | 136,924 | 158,476 |
| Changes in inventories | -15,950 | 0 | -15,950 |
| Other operating income | 95 | 5,532 | 5,627 |
| Income from the deconsolidation of subsidiaries | 18,087 | 0 | 18,087 |
| Total operating performance | 23,784 | 142,456 | 166,241 |
| Cost of materials | -493 | -1 | -494 |
| Cost of purchased services | 0 | -9,356 | -9,356 |
| Staff costs | -4 | -82,495 | -82,499 |
| Other operating expenses | -1,703 | -40,164 | -41,867 |
| Impairment result for trade receivables and contract assets | -12 | -61 | -73 |
| Result from participations | 1,689 | 25,511 | 27,200 |
| Earnings from companies accounted for using the equity method | -405 | 216 | -189 |
| Cost from the deconsolidation of subsidiaries | -2,122 | 0 | -2,122 |
| EBITDAR | 20,733 | 36,107 | 56,840 |
| Reorganisation expenses | 0 | -2,307 | -2,307 |
| EBITDA | 20,733 | 33,800 | 54,534 |
| Appreciation/amortisation of other intangible assets¹, software and rights of use, depreciation of property, plant and equipment as well as financial investments |
90 | -24,627 | -24,537 |
| Earnings before interests and taxes (EBIT) | 20,823 | 9,173 | 29,996 |
| Finance income | 0 | 652 | 652 |
| Finance costs | -1,149 | -2,828 | -3,977 |
| Result from currency translation | 31 | -305 | -274 |
| Earnings before taxes (EBT) | 19,706 | 6,692 | 26,398 |
| Income tax | -1,055 | -10,296 | -11,351 |
| Net profit for the period | 18,651 | -3,604 | 15,047 |
1 In particular fund management contracts transferred as part of the recent acquisitions
| Management | |||
|---|---|---|---|
| EUR k | Investments | Services | Group |
| Revenues | 1,619 | 138,566 | 140,185 |
| Changes in inventories | 1,746 | 0 | 1,746 |
| Other operating income | 51 | 1,964 | 2,015 |
| Income from the deconsolidation of subsidiaries | 0 | 63 | 63 |
| Total operating performance | 3,416 | 140,593 | 144,009 |
| Cost of materials | -1,089 | -1 | -1,090 |
| Cost of purchased services | 0 | -8,956 | -8,956 |
| Staff costs | -11 | -68,073 | -68,085 |
| Other operating expenses | -675 | -32,778 | -33,453 |
| Impairment result for trade receivables and contract assets | 225 | -121 | 104 |
| Result from participations | 1,751 | 26,836 | 28,587 |
| Earnings from companies accounted for using the equity method | 1,245 | 0 | 1,245 |
| Cost from the deconsolidation of subsidiaries | -608 | 0 | -608 |
| EBITDAR | 4,254 | 57,500 | 61,754 |
| Reorganisation income | 0 | 1 | 1 |
| Reorganisation expenses | 0 | -1,473 | -1,473 |
| EBITDA | 4,254 | 56,029 | 60,282 |
| Appreciation/amortisation of other intangible assets¹, software and rights of use, depreciation | |||
| of property, plant and equipment as well as financial investments | 544 | -17,875 | -17,331 |
| Earnings before interests and taxes (EBIT) | 4,798 | 38,154 | 42,952 |
| Finance income | 71 | 880 | 952 |
| Finance costs | -317 | -2,674 | -2,991 |
| Result from currency translation | -183 | -1,155 | -1,338 |
| Earnings before taxes (EBT) | 4,369 | 35,205 | 39,574 |
| Income tax | -951 | -12,010 | -12,961 |
| Net profit for the period | 3,418 | 23,195 | 26,613 |
In particular fund management contracts transferred as part of the recent acquisitions
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 2021 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.
The presentation on related party transactions under 7.2 of the notes to the consolidated financial statements in PATRIZIA´s 2021 Group Annual Report 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.
As at the balance sheet date, PATRIZIA has contingent liabilities from obligations to make additional financial contributions to participations amounting to EUR 11,748k (2021: EUR 7,040k) 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 72,962k (2021: EUR 0k).
The conversion of PATRIZIA AG into a European Stock Corporation (Societas Europaea, SE) was completed on 15 July 2022 by entry in the Commercial Register and is thus formally effective. The legal form of the SE emphasises the European and international orientation of PATRIZIA Group. The previous dualistic management structure, consisting of a Management Board and a Supervisory Board, was adapted to an international, monistic management structure with a Board of Directors. Management is carried out by three Executive Directors. The company's founder and majority shareholder Wolfgang Egger is an Executive Director as well as a member of the Board of Directors, together with six external and independent Directors. The Audit Committee and the Nomination and Compensation Committee remain unchanged. Shareholder rights or financial reporting are not affected by the conversion. The headquarters of PATRIZIA SE will remain in Augsburg / Germany.
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, 11 August 2022
The Executive Directors
Wolfgang Egger Executive Director, CEO
Thomas Wels Executive Director, Co-CEO
Christoph Glaser Executive Director, CFO
PATRIZIA shareholder structure as at 30 June 2022 | by shareholder group | Specification in %
First Capital Partner GmbH is attributable to CEO Wolfgang Egger
2 According to the voting rights notification of 31 October 2018 3 According to the voting rights notification of 14 December 2020
4 Treasury shares
5 Source: PATRIZIA share register
1Based on closing price of EUR 11.28
The number of treasury shares as at 30 June 2022 amount to 4,111,900 with a total value of EUR 76,686k based on average share prices.
| EUR k | H1 2022 adjusted¹ |
H1 2021 adjusted¹ |
H1 2022 | H1 2021 |
|---|---|---|---|---|
| Share of earnings attributable to shareholders of the Group | 15,715 | 26,731 | 13,408 | 25,258 |
| Number of shares² | 88,239,576 | 89,348,162 | 88,239,576 | 89,348,162 |
| Weighted number of shares undiluted² | 88,724,941 | 89,639,793 | 88,724,941 | 89,639,793 |
| Earnings per share (undiluted) in EUR | 0.18 | 0.30 | 0.15 | 0.28 |
| Weighted number of shares diluted³ | 88,724,941 | 89,639,793 | 88,724,941 | 89,639,793 |
| Earnings per share (diluted) in EUR³ | 0.18 | 0.30 | 0.15 | 0.28 |
1 Adjusted = not including reorganisation result
2 Outstanding after share buybacks
3 Share-based payment, if serviced by new shares
Financial calendar 2022
| Date | |
|---|---|
| 12 August 2022 | H1 2022 Financial Report with investor and analyst conference call |
| 10 November 2022 | 9M 2022 Interim Statement with investor and analyst conference call |
Financial calendar 2023
| Date | |
|---|---|
| 28 February 2023 | 2022 Preliminary results with investor and analyst conference call |
| 23 March 2023 | 2022 Annual Report |
| 12 May 2023 | 2023 3M Interim Statement with investor and analyst conference call |
| 25 May 2023 | 2023 Annual General Meeting, Augsburg |
| 11 August 2023 | 2023 H1 Financial Report with investor and analyst conference call |
| 14 November 2023 | 2023 9M Interim Statement with investor and analyst conference call |
| Investor Relations & Group Reporting | Corporate Communications |
|---|---|
| Martin Praum | Christoph Liedtke |
| T +49 69 643505-1114 | T +49 821 50910-636 |
| [email protected] | [email protected] |
This H1 2022 financial report was published on 11 August 2022. This is a translation of the German Half-year 2022 Financial Report. In case of doubt, the German version shall apply. Both versions are available on our website:
https://www.patrizia.ag/de/aktionaere/news-publikationen/zwischenmitteilungen-und-halbjahresfinanzberichte/ https://www.patrizia.ag/en/shareholders/news-publications/interim-statements-and-h1-financial-reports/
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