Patrizia has posted a 48% fall in EBITDA during H1 this year, on the back of the “muted market environment”.
EBITDA dropped to €28.4m (£24.5m) compared with the same period in 2022.
Total service fee income was down by 6.1% year-on-year to €151.8m.
Income from recurring management fees, which was up by 3.6%, was not enough to offset transaction and performance fee declines.
Transaction fees amounted to €4.1m during H1 this year compared with €11.4m in the previous year.
Performance fees stood at €27.1m, down from €33.8m in H1 2022.
The Germany-based investment manager said its operating business was impacted by an “environment of continued market uncertainty, high inflation and rising financing costs” in the first half of this year.
Assets under management stood at €57.9bn, down by 2.1% to compared with H2 2022.
Net sales revenues and co-investment income declined to €2.9m, from €7.5m in H1 last year. Patrizia said the decrease was mainly an effect of its sale of Trocoll House, in Barking, east London, in H1 last year, which was one of its last-remaining balance sheet properties in the UK.
Net operating expenses increased by 10.2% to €126.3m.
Patrizia chief executive Asoka Wöhrmann (pictured) said: “The market environment overall remains challenging, but Patrizia’s well-diversified platform offers opportunities for clients to invest in the sectors we have high conviction in, which are those addressing the global megatrends of demographic change, digitalisation, urbanisation and decarbonisation.
“We will strengthen and diversify our German business and we will scale our investment offering globally. To help achieve this, we leverage the vast synergies between real estate and infrastructure to create even more value for our growing network of international clients and for our stakeholders.”
Patrizia chief financial officer Christoph Glaser said: “We continue to operate in a tough market environment affecting revenue generation in transaction-related fees. Nevertheless, we benefit from the stream of stable and recurring management fees as the solid basis of Patrizia’s platform.
“To preserve AUM and recurring management fees, the active management of the current assets for the benefit of our clients is more important than ever. Furthermore, the effective management of our operating cost base has the utmost priority. At the same time, we will continue to support selected growth initiatives.”
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