PATRIZIA (PAT) Q1 2025 earnings summary

Executive summary

• EBITDA increased by 11.5% year-over-year to EUR 16.8m in Q1 2025, mainly due to reduced staff costs, cost discipline, and efficiency gains, despite a 5.9% decline in total service fee income.

• EBITDA margin rose by 3.1 percentage points to 23.4%, exceeding guidance due to annual carry payments.

• AUM remained stable at EUR 56.1bn, with the highest organic AUM growth since Q4 2023, though slightly down 0.5% from 3M 2024 due to negative valuation effects.

• Net profit more than doubled to EUR 5.1m, mainly due to lower staff costs.

• Management fees now fully cover operating expenses, achieving a strategic milestone.

Financial highlights

• Total service fee income declined 5.9% year-over-year to EUR 68.2m, mainly due to lower performance fees.

• Net sales revenues and co-investment income rose to EUR 3.8m, driven by positive co-investment impacts.

• Operating expenses decreased by 13% to EUR 56.2m, mainly due to lower staff costs and bonus accruals.

• Net equity ratio stands at 68.2%, with available liquidity at EUR 106.3m.

• Dividend proposal of EUR 0.35 per share, up 2.9% year-over-year, with a current yield of 4.6%.

Outlook and guidance

• FY 2025 guidance unchanged: AUM expected between EUR 58.0–62.0bn, EBITDA between EUR 40.0–60.0m, and EBITDA margin of 15.2–20.8%.

• Positive momentum expected in investments and pipeline building for the remainder of 2025, with improved client activity anticipated in H2 2025.

• Management expects smaller positive valuation effects on AUM by year-end.

• Focus remains on fundraising and platform efficiency to support growth ambitions.

• No significant one-off effects included in 2025 outlook, unlike 2024.