PATRIZIA SE reported substantial financial improvement in the first nine months of 2025, with EBITDA surging to €44.6 million compared to €6.7 million in the same period last year. The company's EBITDA margin expanded dramatically to 22.1%, representing an 18.6 percentage point increase from the previous year's 3.5%. This performance has prompted management to raise full-year EBITDA guidance to €50.0-65.0 million, up from the previous range of €40.0-60.0 million.
The financial turnaround was primarily driven by rigorous cost discipline and efficiency measures that reduced total operating expenses by 17.1% to €166.0 million. Management fees of €174.0 million exceeded operating expenses, demonstrating improved operational efficiency. Staff costs decreased by 14.9% to €111.4 million, while other operating expenses fell by 25.2% to €41.8 million. The company's net profit for the period turned positive at €6.9 million, a substantial improvement from the €29.2 million loss recorded in the first nine months of 2024.
Investment activity showed significant improvement, with closed acquisitions increasing by 41.0% to €1.8 billion, indicating that investors are returning to real assets. Total closed transactions grew by 7.7% year-over-year. Assets under management reached €56.3 billion as of September 30, 2025, showing slight quarter-on-quarter growth from €55.9 billion at June 30, 2025. The company specified its AUM guidance to €56.0-60.0 billion for year-end 2025, adjusted from the previous range of €58.0-62.0 billion due to lower-than-anticipated equity raised, investment activities, and currency effects.
CEO Asoka Wöhrmann attributed the improved performance to the successful integration of real estate and infrastructure investment platforms, creating what the company describes as a smart real assets platform. Infrastructure remains a key focus area for long-term investment opportunities, particularly in modernizing Europe's aging infrastructure. The company also sees attractive investment opportunities in modern Living as a key future growth area, leveraging its 40-year track record in real asset management.
Operating cash flow showed dramatic improvement, leaping to €40.2 million from €2.3 million in the same period last year. This strong cash generation enabled the company to cover dividend payments of €30.3 million for fiscal year 2024 while maintaining financial flexibility for strategic co-investments. CFO Martin Praum emphasized that the company's relentless focus on cost reduction has decoupled group profitability from market-driven investment timing and performance fees, providing resilience in a market environment characterized by stabilization and slow recovery in client activity.
The improved financial metrics and raised guidance reflect PATRIZIA's successful navigation of challenging market conditions through operational efficiency and strategic positioning in real assets. For additional information about the company's operations and investment approach, visit https://www.patrizia.ag. The company's commitment to social impact through its foundation work can be explored at https://www.patrizia.foundation.
