Press & News

Despite market headwinds, Urban Partners advanced its business with significant investments in 2023

Urban Partners, which in 2023 launched its vision to become the world's leading investor in the urban value chain, announced its 2023 results. Despite a challenging year, the underlying business remains robust, and the company is confident in its strategic direction and growth prospects.
June 28th 2024 – The launch of Urban Partners and subsequent investments represent a vision of becoming the world’s most competent investor in the urban value chain. By addressing the unmet demand for better cities, Urban Partners remains committed to delivering superior returns for investors in line with its historic strategic approach.
“Our vision for Urban Partners remains unwavering despite the challenging market conditions. In 2023, we actively engaged in the markets while continuing to build an efficient and resilient organization. We’re confident and forward-leaning, committed to deliver on our aspiration to become the world's leading urban investor,” said Jens Stender, Co-CEO at Urban Partners.
While 2023 was a challenging year, Urban Partners maintains confidence in its strategic direction and future growth prospects. The focus in 2023 and 2024 is on building the platform to address the needs of better cities and ensure more sustainable and thriving urban environments. During 2023, Urban Partners’ underlying business demonstrated robust health:
  • Adjusted profits, before exceptional non-cash adjustments, stood at EUR 14.5 million.

  • Revenue stemming from fund management fees increased by EUR 23.7 million, a 19% year-on-year rise to EUR 188 million, following the successful closure of the EUR 3.6 billion NSF V, Europe’s largest ever real estate value add fund.

  • Staff costs were largely stable, increasing by only EUR 2 million (2%), and administrative expenses decreased by EUR 0.2 million (0.3%), underscoring effective cost control.

  • Cash generation remained positive, with a surplus of EUR 5.1 million.

Overall, however, Urban Partners reported a loss before tax of EUR 55.9 million in 2023, driven primarily by one-off, non-cash accounting adjustments of EUR 62.2 million. This includes a EUR 34.7 million write-down in potential future outperformance-related fees (historically recognized in more positive market environments) and a EUR 27.5 million write-down of intangible assets linked to restructuring efforts aimed at positioning the business for future growth.
“The overall accounting result reflects a broader contraction in the markets, influenced by structural changes in interest rates and geopolitical uncertainties. We are, however, satisfied that our underlying business remains strong, with recurring management fee growth and disciplined cost management allowing us to navigate these uncertain times and continue investing in our platform,” said Colin Throssell, CFO of Urban Partners.
Urban Partners anticipates that 2024 will align closely with the company's plan, with continued investment into the business expected to result in an operational core business around break-even. The significant non-cash adjustments seen in 2023 are not expected to repeat, leading to more aligned operational and financial accounts.
“2023 has been a good year in establishing and investing in our bold vision for the new Urban Partners platform. Investors continue to trust us as their investment manager of choice, and the adjusted profitability of our business has been in line with expectations. Despite significant challenges in the investment markets in 2023, we are satisfied that our underlying business remains strong, positioning us for future growth,” Colin Throssell added.
During the challenging market conditions of 2023, Urban Partners' funds have continued to deliver strong performance, consistently ranking in the top quartile compared to peers. This highlights the competitive edge of Urban Partners’ platform, ensuring that investors continue to benefit from robust, market-leading fund performance.
For further details, contact:
Anders Rosendahl, Media Coordinator, Urban Partners:
+4540483766 /