PATRIZIA Immobilien AG: Posts a strong first quarter of 2014 and more than doubles earnings figures

Augsburg (pta005/08.05.2014/07:00 UTC+2) Key points:
- Operating result increases to EUR 16.0 million (+109%)
- EBT (IFRS) rises to EUR 13.2 million (+111%)
- Net profit for the period (IFRS) climbs to EUR 12.0 million (+132%)
- Assets under management increase to EUR 12.9 billion
- "Leo I" transaction completed at the end of the quarter
- 2014 forecast confirmed: operating result of at least EUR 50 million

Augsburg, 8 May 2014. PATRIZIA Immobilien AG (ISIN DE000PAT1AG3) has made a suc-cessful start to the 2014 fiscal year. The Group more than doubled its key earnings figures in the first three months, with the operating result, its principal control parameter, increasing from EUR 7.7 million in the previous year to EUR 16 million. Management Services accounted for 74% of this amount. Earnings before tax (EBT) rose from EUR 6.2 million to EUR 13.2 million, while net profit for the period improved from EUR 5.2 million to EUR 12.0 million.

The transaction for the "Leo I" commercial real estate portfolio was completed in the first quarter of 2014 with a market value of around EUR 1 billion, which was incorporated into a special real estate fund. Assets under management as at 31 March 2014 thus rose to EUR 12.9 billion. With the company aiming to grow managed real estate assets by EUR 2 billion in the 2014 fiscal year, around half of this target has already been achieved through this purchase.

In the first quarter of 2014, consolidated revenues improved 11.8% to EUR 47.0 million (first quarter of 2013: EUR 42.1 million). Significantly lower purchase price revenues from inventories (-53.3%) were more than offset by higher revenues from service business. The latter amounted to EUR 29.8 million and include the purchase commission for the "Leo I" portfolio. Management Services now accounts for 63.3% of total consolidated revenues, which were previously largely shaped by sales successes.

Income from participations amounted to EUR 4.2 million (first quarter of 2013: EUR 6.5 million) and includes the quarterly pro-rata advance profit distributions of the co-investments Südewo (EUR 1.8 million) and GBW (EUR 2.4 million). The decline compared with the same quarter in the previous year is due to the fact that in order to achieve a more transparent income statement, advance profit distributions have been calculated on an exact monthly basis from January 2014. The co-investment WohnModul I produced earnings from companies accounted for using the equity method of EUR 0.8 million (first quarter of 2013: EUR 0).

The slight 1.2% rise in bank loans to EUR 325.6 million since the end of 2013 and the fact that the equity ratio remained unchanged at 41.9% was due to a one-off effect associated with the purchase of "Leo I". Due to outstanding equity payments on the part of two investors, PATRIZIA Immobilien AG subscribed to bonded loans of EUR 84.9 million that extended beyond the quarterly reporting date and financed these through equity of EUR 20.5 million and a bridge loan of EUR 64.4 million. Both the equity portion and the bridge loan were repaid at the start of April following receipt of the investors' payments, with the result that the equity ratio and level of indebtedness will reveal a further improvement as at 30 June.

Outlook for 2014
The results for the first quarter of 2014 and the positive development after the quarterly reporting date have encouraged the Managing Board of PATRIZIA Immobilien AG to confirm its 2014 forecast of an operating result of at least EUR 50 million. For the current fiscal year it can again be assumed that around 50% of the operating result will not be achieved until the final quarter, because dividends and performance fees are usually received in the final quarter of a year. The next two quarters will thus contribute less to results.

The full quarterly report for the first quarter of 2014 can be viewed at
www.patrizia.ag/en/investor-relations/financial-reports/quarterly-reports/.

The Managing Board

(end)

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