PATRIZIA Immobilien AG: PATRIZIA concludes the 2013 fiscal year successfully

Augsburg (pta006/27.03.2014/07:00 UTC+1) Key points:
- EBT (IFRS) increases to EUR 39.6 million (+38%)
- Consolidated annual profit (IFRS) EUR 37.2 million (+46%)
- Operating result EUR 38.1 million (-13%)
- Equity ratio rose by 6.5 percentage points to 41.9%
- Bank loans including bonded loans reduced by 23% to EUR 399 million
- Shareholders once more share in profits with bonus shares in allocation ratio of 10:1
- Operating result forecast of at least EUR 50 million for 2014

Augsburg, 27 March 2014. In the past 2013 fiscal year PATRIZIA Immobilien AG (ISIN DE000PAT1AG) achieved an operating result of EUR 38.1 million and remained within the range of its adjusted December forecast (previous year: EUR 43.9 million). EBT in accordance with IFRS increased by 38% to EUR 39.6 million. There was a consolidated annual profit after tax of EUR 37.2 million, which corresponds to an increase of 46% over the previous year and at the same time constitutes the highest value of the past six years. An analysis of the source of the operating result reveals that 80% came from services (previous year: 52%). The target of a share from service business of at least two-thirds was therefore more than achieved. Assets under management recorded growth of 71% to EUR 11.8 billion during (previous year: EUR 6.9 billion).

Significant increase in service business
Consolidated revenues fell by 5.2% to EUR 217.4 million (2012: EUR 229.2 million). This was due, in the first place, to the fact that 54.9% of the units sold came from non-current assets and that the selling prices totalling EUR 169.4 million are, in accordance with IFRS, not reported in revenues (2012: EUR 178.3 million). This change in revenues is largely attributable to the declining purchase price revenues from inventory assets (-24.5% compared with the previous year). In contrast, revenues from service business rose by a significant 40.9% to EUR 94.8 million.

Investment results show the success of our co-investments
PATRIZIA generated earnings of EUR 32.1 million from the Südewo and GBW AG co-investments (2012: EUR 6.6 million). The WohnModul I co-investment produced a result of EUR 0.7 million, following EUR 0.5 million in the previous year. The results from the co-investments and the improved financial result meant earnings before tax (EBT) rose 38.4%.

Completed sales
In the 2013 fiscal year, 1,714 units were placed from own stock (+0.3%). The stock of own property will be sold off as far as possible by the end of 2015, and remaining stocks will also be sold off soon after 2015. A total of 1,722 units were sold as part of co-investments and services (+74.5%). The sale of real estate assets produced sales revenues of EUR 80.3 million (2012: EUR 106.2 million). Sales revenues from investment property that are not shown under revenues totalled EUR 169.4 million (2012: EUR 178.3 million). Of the total sales volume of EUR 249.7 million, EUR 151.5 million (60.7%) was generated through residential property resales and EUR 98.2 million (39.3%) through block sales. Due to the reduction in inventory, rental income fell by 28.2% to EUR 30.7 million (2012: EUR 42.7 million). Revenues from co-investments amounted to EUR 39.2 million (2012: EUR 28.9 million) while revenues from business with third parties increased from EUR 38.5 million to EUR 55.6 million. The item "Other" accounted for sales revenues of EUR 11.6 million (2012: EUR 12.9 million).

Level of debt reduced, equity ratio increases
Property-related bank loans were reduced by 38.3% to EUR 321.6 million as a result of successful sales of real estate (2012: EUR 521.1 million). It is, however, important to note that the economic transfer and/or full purchase price payment and the associated pro-rata loan repayment of block sales notarised in the fourth quarter of 2013 in a volume of EUR 42.1 million was not effected until the 2014 fiscal year, with the result that total debt (including bonded loans) fell below EUR 350 million in February 2014. By contrast, liquid assets improved by more than 100% to EUR 105.5 million. PATRIZIA thus has a stable basis at its disposal to engage in further co-investments. The equity ratio increased by 6.5 percentage points to 41.9% and return on equity (based on the operating result) amounted to 10.7%.

Appropriation of net profits
The Managing Board and Supervisory Board will submit a proposal to the Annual General Meeting on 27 June 2014 that the net profit of PATRIZIA Immobilien AG for 2013 be entirely carried forward to the new account. As in the previous year, it is planned to issue new shares under a capital increase from retained earnings, with shareholders having an entitlement in a ratio of 10 to 1. The new shares will carry dividend rights from the beginning of the 2014 fiscal year.

Outlook for 2014
PATRIZIA Immobilien AG expects an operating result of at least EUR 50 million for the 2014 fiscal year. For the forecast it should be remembered that the purchase fees incurred in 2013 - especially in connection with the acquisition of GBW AG - are to be replaced by regular management fees during the course of the current year. At the same time, financial expenses will fall significantly after a large proportion of the concluded interest hedging transactions expired at 31 January 2014, with the remaining ones due to expire in the middle of the year. PATRZIA will use the equity released by the reduction in the level of indebtedness for new co-investments. This will continue to reinforce the company's position as a fully integrated real estate investment company with its corresponding unique selling points as it celebrates its 30th anniversary with the slogan "30 years of PATRIZIA - 100% passion".

PATRIZIA expects growth in assets under management of at least EUR 2 billion for 2014. This represents the balance of purchases and sales by the two asset management companies and the co-investments and of the continuing sale of own stock. In addition, this mean value takes into account one to three portfolio transactions with an individual volume of EUR 0.2 to 1 billion.

The full annual report for the 2013 fiscal year can be viewed at
www.patrizia.ag/en/investor-relations/financial-reports/annual-reports/.

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Emitter:	PATRIZIA Immobilien AG Fuggerstraße 26 86150 Augsburg Germany
Contact Person:	Verena Schopp de Alvarenga
Phone:	+49 821 50910-351
E-Mail:	investor.relations@patrizia.ag
Website:	www.patrizia.ag
ISIN(s):	DE000PAT1AG3 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Hannover, Munich, Stuttgart