• BUWOG successfully completes 2013/14 financial year - Recurring FFO of EUR 69.2 million*
• Executive Board will propose a dividend of EUR 0.69 per share
• The BUWOG Group advances to become the leading German-Austrian residential property company
• Potential of BUWOG Group's three-pillar business model underscored by increased rental income from the portfolio, high margins on fair value in Unit Sales and a strong pipeline of development projects

Vienna, 29 August 2014 - BUWOG AG can look back on a successful financial year that was also shaped by long-term strategic decisions connected with the spin-off from its former parent IMMOFINANZ AG, its successful listing on the Frankfurt, Vienna and Warsaw Stock Exchanges and major acquisitions. BUWOG AG has now established a clear position on the capital market as the leading German-Austrian residential property company and created the foundation for further growth in the high-margin German real estate market.

Following the acquisition of the DGAG portfolio and its management platform in June 2014 and the purchase of further smaller real estate portfolios in Germany, BUWOG Group's standing investment portfolio of approx. 53,000 units is now evenly split between Germany and Austria. The relating strong cash generation profile is evidenced in Recurring FFO, which exceeded forecast at EUR 69.2 million*. Based on the successful 2013/14 financial year, the Executive Board plans to recommend the distribution of a EUR 0.69 dividend per share to the Annual General Meeting. This represents a 4.0% dividend yield on EPRA-NAV per share (EUR 17.21) and a 4.7% dividend yield based on the closing price on 28 Aug 2014 EUR (14.78). This dividend is classified as a repayment of capital in accordance with § 4 (12) of the Austrian Income Tax Act and is therefore tax-free for natural persons resident in Austria who hold BUWOG shares as part of their private assets.

With results of EUR 75.9 million*, the Asset Management business area was the strongest of BUWOG Group's three business areas - Asset Management, Property Sales and Property Development - in 2013/14. The results of the Property Sales business area totalled EUR 34,0 million* and were influenced mainly by the strong Unit Sales business with approx. 550 units sold at a margin of 54% above fair value. The strategic geographic portfolio optimisation also continued with Block Sales of properties and portfolios amounting to approx. 1,700 units at a margin of 11% above fair value. The Property Development business area with its regional focus on the capital cities of Vienna and Berlin contributed EUR 4.9 million* to the company's operating results.

As of the balance sheet date on 30 April 2014, the BUWOG Group's standing investment portfolio amounted to 33,475 units with a fair value of EUR 2.5 billion and a total floor area of approx. 2.5 million sqm. The closing of the DGAG and Apollo acquisitions in the first quarter of the 2014/15 financial year increased the standing investment portfolio to approx. 53,000 units with a total floor area of approx. 3.7 million sqm and a fair value of approx. EUR 3.5 billion. The sustainability of the BUWOG Group's portfolio is underlined by the repeated realisation of margins above fair value in the Property Sales business area. EPRA-NAV amounted to approx. EUR 1.7 billion as of the balance sheet date.

"BUWOG Group has now reached a size that allows for the highly efficient management of its standing investments. Our personnel structure and management capacities are capable of effectively managing our operational growth course, also in the coming years", explained CEO Daniel Riedl. "In 2013/14 we successfully established a position on the capital market as the leading German-Austrian residential property company and intend to expand that position in the future."

The Executive Board plans to continue its value-creating strategy with regards to the portfolio. Based on the expected Recurring FFO of EUR 75.0 million in the 2014/15 financial year, the Executive Board also plans to continue its policy of distributing an attractive dividend to BUWOG AG's shareholders.

*The formation of BUWOG Group required BUWOG AG, as the parent company, to prepare consolidated financial statements for the first time as of 30 April 2014. These consolidated financial statements meet the requirements of IFRS. However, BUWOG AG's historical IFRS financial data have limited explanatory power because the company has only existed in its current structure since the end of April 2014.

In the interest of transparency towards its shareholders and the capital markets, the BUWOG Group has decided to prepare additional pro-forma financial information. This pro-forma information is included in the notes, the management report as of 30 April 2014 and the annual report.

The pro-forma financial information, in particular, includes a pro-forma profit and loss statement for the period from 1 May 2013 to 30 April 2014 and a pro-forma consolidated balance sheet as of 30 April 2013.
 

All numbers marked with * in this press release relate to the pro-forma income statement or the pro-forma consolidated balance sheet and do not include the DGAG acquisition.

 

BUWOG GROUP KEY FIGURES

Earnings Data		2013/14 pro forma*
Rental revenues	in EUR mill.	116.5
Results of Asset Management	in EUR mill.	75.9
Results of Property Sales	in EUR mill.	34.0
Results of Property Development	in EUR mill.	4.9
EBT	in EUR mill.	131.5
Net profit	in EUR mill.	111.8
Recurring FFO	in EUR mill.	69.2

 

Asset and Financial Data		30 April 2014
Balance sheet total	in EUR mill.	3,355.3
Equity ratio	%	46.3%
Loan-to-value (LTV)	%	35.9%
EPRA Net Asset Value	in EUR mill.	1,714.3

 

Share Data		30 April 2014
Recurring FFO* per share	in EUR	0.69
EPRA Net Asset Value per share	in EUR	17.21

 

KEY PROPERTY PORTFOLIO DATA

Asset Management		30 April 2014	Consideration incl. DGAG and Apollo on database as per 30 April 2014
Number of units	Units	33,475	52,718
Monthly in-place rent	in EUR per m²	4,31	4.63
Vacancy rate	%	4,8%	4.1%
Fair value	in EUR mill.	2,526	3,468
Net Rental Yield	%	4,9%	5.6%

 

Property Sales		2013/2014
Units sold	Units	2,292
Margin on fair value - Unit Sales	%	54%
Margin on fair value - Block Sales	%	11%

 

Property Development		2013/2014
Completed total floor area	in m²	30,663
Investments in properties under construction	in EUR mill.	122

 

Detailed information in the annual report available for download at http://www.buwog.com/files/cms/328/

For enquiries please contact:

Media enquiries Germany:                                                         Investor Relations:

Nikolaus von Raggamby                                                             Holger Lueth
RUECKERCONSULT                                                                   BUWOG AG
+49 (0)30 284498 740                                                                 T +43 (0) 1 87828 1203
vonraggamby@rueckerconsult.de                                            investor@buwog.com

Media enquiries Austria:

Thomas Brey
LUSTIG+BREY
T +43 (0) 1 233 01 23 15
M +43 676 542 39 09
brey@lustigbrey.at