PATRIZIA Reports Strong Financial Turnaround and Raises 2025 Guidance Amid Real Asset Market Recovery

PATRIZIA SE reported substantial financial improvement in the first nine months of 2025, with EBITDA surging to EUR 44.6 million compared to EUR 6.7 million in the same period last year, representing an EBITDA margin of 22.1% versus 3.5% previously. The German investment manager attributed this dramatic turnaround to rigorous cost discipline and efficiency measures that reduced operating expenses by 17.1% to EUR 166.0 million, while management fees of EUR 174.0 million exceeded operating costs for the period.

The company's improved financial performance comes amid signs of market stabilization in real assets, with closed acquisitions increasing by 41.0% to EUR 1.8 billion, indicating renewed investor confidence in real estate and infrastructure investments. Assets under management showed quarter-on-quarter growth to EUR 56.3 billion as of September 30, 2025, driven by organic net AUM growth and slightly positive asset valuations in the third quarter. This development is particularly significant as it marks the first quarterly AUM growth in 2025 after a challenging period for real asset markets.

PATRIZIA CEO Asoka Wöhrmann emphasized the strategic importance of the company's integrated real assets platform, stating that infrastructure remains a very attractive long-term investment opportunity to modernize Europe's aging infrastructure while identifying modern Living as a key future growth area. The company's 40-year track record positions it to capitalize on emerging opportunities in the new market cycle, particularly through its focus on the DUEL megatrends - digital, urban, energy and living transitions that are transforming global real asset markets.

Beyond the headline EBITDA improvement, the company demonstrated strong operational cash flow generation of EUR 40.2 million, which comfortably covered dividend payments of EUR 30.3 million for fiscal year 2024 while allowing for additional strategic co-investments. The improved cash position provides PATRIZIA with maintained financial flexibility amid ongoing market stabilization. Performance fees of EUR 12.6 million and transaction fees of EUR 5.0 million contributed to total service fee income of EUR 191.7 million, with management fees accounting for 90.8% of this total, indicating a stable recurring revenue base.

Based on the strong nine-month performance, PATRIZIA raised its full-year 2025 EBITDA guidance to EUR 50.0-65.0 million from the previous range of EUR 40.0-60.0 million, with the corresponding EBITDA margin guidance increasing to 19.0-24.0% from 15.2-20.8%. The company specified its AUM guidance to EUR 56.0-60.0 billion, reflecting lower than anticipated equity raising, investment activities and currency effects. CFO Martin Praum highlighted that the company has successfully decoupled Group profitability from market-driven investment timing and performance fees, a crucial achievement in the current environment of gradual market recovery.

The improved financial results and guidance revision signal broader implications for the real asset investment industry, suggesting that disciplined cost management combined with strategic platform integration can drive profitability even during periods of market transition. PATRIZIA's performance indicates that institutional investors are returning to real estate markets, particularly in international transactions and infrastructure sectors, which could signal the beginning of a new investment cycle in real assets. For more information about PATRIZIA's investment approach and corporate initiatives, visit https://www.patrizia.ag and https://www.patrizia.foundation.