INTREAL Off to a Good Start into the 2024 Financial Year
16. May 2024
IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH (“INTREAL”), Germany’s leading thirdparty AIFM in the real estate sector, continued to grow steadily during the first quarter of 2024. While the market environment remained as demanding as it had been, the company’s assets under administration (AuA) increased by c. 82 million euros or 0.1 percent to a total of 65.7 million euros during the year’s first three months. The key performance indicator is measured based on the development of the sum total of the properties’ fair market values, on the value of the fund’s other assets and on the value balance of the acquisitions and dispositions completed over the course of the quarter.
As of 31 March 2024, INTREAL managed a total of 306 funds (31/12/2023: 305). The number of properties under management increased by 32 assets to a new total of 2,693 properties by the end of Q1. The company succeeded in filling vacant or new positions at its three branch locations of Hamburg, Frankfurt and Luxembourg with qualified professionals as planned. This expanded the human resource pool to a new total of 524 staff (31/12/2023: 520).
Stabilised on a high level – optimistic outlook for the full year of 2024
Michael Schneider, Managing Director at INTREAL, commented on the performance: “Following the record growth of the past few years, the dynamic in the real estate and real estate fund segments has lost some of its momentum as expected, particularly as a result of the shifted market interest environments, which became apparent as early as 2023. Nonetheless, we managed a successful start into the year 2024. At this time, we are seeing a consolidation on the same high level we had achieved by the end of 2023. Remarkable from our point of view is the clearly positive net balance of real estate acquisitions and dispositions during the first quarter. The trend reflects the gradually accelerating transaction activities as market conditions are beginning to return to normal, which is something various market analysts have confirmed lately. The robust performance of INTREAL’s key ratios is moreover reflected in the balanced valuation result across all asset classes as well as in the fact that we managed to secure the imminent follow-up financing arrangements at market conditions that are more attractive than those available until recently. The then-as-now very high occupancy rates and the, in some cases significantly, increased rent revenues of the funds have translated into stable and predictable payout amounts. These are key aspects if you wish to ensure that real estate continues to present itself as a sustainably stable, dividend-oriented and inflation-hedging asset class for both private and institutional investors in future, not least with a view to imminent or already effected interest rate cuts for alternative interest rate investment products.”
Camille Dufieux, Managing Director of INTREAL, commented: “The stable performance of INTREAL also manifests itself in the continued development of our human resources. Any change in market conditions also necessitates an adjustment of the required skills. With that in mind, we managed once again to strengthen and expand our team of experts through further recruitments in the course of the first quarter. These include hirings to fill important senior positions in the areas of risk management and portfolio supervision with experienced in-house experts and executives. For the remainder of the year and in regard to the challenges we face as a result of a consolidating market, we consider ourselves well-positioned to ensure a stable or indeed positive business performance during the ongoing year. A key element contributing to this effort will be the supplementary real asset investment alternatives that we offer via our platform at our German and Luxembourg locations and that we administrate in growing volumes.”
Growth in both business divisions, Partner Funds and AIFM Services
With 154 funds under administration and c. 35.4 billion euros worth of assets, the Partner Funds segment was the largest business unit of INTREAL as it accounted for a share of almost 54 percent of the company’s total AuA. Since the end of the previous financial year, the AuA of the Partner Funds division increased by c. 42 million euros. In its Partner Funds division, the third-party AIFM offers every kind of service related to the launching and administrating of alternative investment funds (AIF) to asset managers and property developers who have no AIFM licenses of their own, and to other clients.
AIFM Services, the other major business line of INTREAL, also saw further growth during the first three months of 2024. The AuA volume of the AIFM Services unit added up to c. 30.4 billion euros, generated by 152 funds under management. During the reporting period, the AuA in this segment increased by c. 40 million euros. The AIFM Services division of INTREAL provides deliverables to other licensed AIF management companies, fulfilling complex administrative tasks like reporting, controlling (management accounting), fund accounting or equity investment management and risk management, among other services.
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