Patricia shares chart after three-day rise

FRANKFURT (dpa-AFX) - The otherwise resilient Patrizia equity sector came under considerable pressure on Thursday. According to traders, key data presented at the after-party at the close of trading the previous day proved mixed. After three positive trading days that resulted in an overall 11 percent increase in share price, the news was not enough to drive further gains.

While real estate stocks fell nearly 8 percent, the Stoxx Europe 600 Real Estate sector index recovered half a percent from its lowest level since late November.

As the sector is very sensitive to interest rates, investors are eagerly awaiting inflation signals expected from Germany and the US on Thursday. The slowdown in the real estate market, characterized by high interest rates, continues to be reflected in Patrizia's results.

After two years of sharp declines, the earnings target range assumes stabilization at the lowest level at minimum, but at maximum a further reduction in operating profit (EBITDA) by almost half. Patrizia expects EBITDA of between 30.0 and 60.0 million euros in 2024. In the previous year, the operating result fell 31.5 percent to 54.1 million euros.

• The slowdown in the real estate market, characterized by high interest rates, continues to be reflected in Patrizia's results.
• The Company believes that the estimated pressure in the sector will continue in the current fiscal year 2024.
• After two years of sharp declines, the earnings target range assumes stabilization at the lowest level.

'The forecast still reflects this uncertainty,' said one trader.