- BUWOG AG closes the first quarter with successful operating results - results of operations amount to EUR 36.7 million and Recurring FFO totals EUR 21.9 million
- Continued success in the Property Sales business area: high-margin Unit Sales of 124 apartments and two properties with 48 units in Block Sales for results of EUR 8.4 million
- Profitable project development: Property Development with results of EUR 6.8 million and a project pipeline with a volume of approx. EUR 1.5 billion
- Negative financial results of EUR 42.8 million, primarily due to non-cash valuation effects (EUR -33.2 million) from the development of interest rates
- Integration of the management platform started immediately after the signing for the acquisitions in Germany
BUWOG AG can look back at successful operating results for the first quarter of 2014/15. Following the closing of the two major portfolio acquisitions in Germany (DGAG and Apollo), these properties made a contribution to the earnings of BUWOG AG for roughly one month. These transactions increased the BUWOG Group's portfolio to approx. 52,500 units, or approx. 3.6 million sqm of floor space, which is now distributed almost equally between Germany and Austria based on the number of units. In April work also started on the integration of the German management platform, which will set the cornerstone for sustainable profitable growth.
Asset Management continues to form the core of BUWOG's business model, in particular after the strengthening of the German portfolio. With in-place rent of EUR 36.2 million, this business area contributed EUR 26.1 million to results for the first quarter of 2014/15.
In the Property Sales business area, the high-margin Unit Sales continued as planned with 124 apartments. Further strategic portfolio adjustments were also made in Austria with the sale of two properties (Block Sales) containing a total of 48 units at prices substantially over the book value. The Property Sales business area contributed EUR 8.4 million to the results of operations, above all due to the steady high margins in relation to fair value.
The Property Development business area was exceptionally successful with 176 completed units and a contribution of EUR 6.8 million to the results of operations. That underscores the solid value of the investment pipeline, which contains roughly 5,500 units with an investment volume of EUR 1.5 billion.
Earnings before tax (EBT) of EUR 8.2 million were significantly influenced by financial results of
EUR -42.8 million for the first quarter, which were caused chiefly by non-cash effects from the valuation of loans and derivatives. Given the high share of loans carried at fair value and the valuation of the hedges used by the Group, the continued flattening of the long-term reference interest rate during the first quarter of 2014/15 led to results of EUR -33.2 million. These results do not involve cash and therefore have no effect on liquidity.
Recurring FFO, the key indicator for BUWOG's business model and a measure of the sustainable cash flows from the Asset Management and Property Development business areas and Unit Sales, was clearly positive at EUR 21.9 million for the first quarter of 2014/15. This underscores the potential and stability of BUWOG's business model, which covers the entire value chain.
Against this backdrop, the Executive Board confirms its forecast for Recurring FFO of EUR 75.0 million in the 2014/15 financial year.
"The BUWOG Group is continuing its success course as the leading German-Austrian residential property company. We kept our strategic promise to substantially increase the share of properties in the high-return regions of Germany and, based on first-quarter results, can now see that we took the right steps to not only strengthen but also further expand our position", commented CEO Daniel Riedl.
Key Data
| Earnings data |
|
Q1 2014/15 (1 May to 31 July 2014) |
| Rental revenues |
in EUR million |
36.2 |
| Results of Asset Management |
in EUR million |
26.1 |
| Results of Property Sales |
in EUR million |
8.4 |
| Results of Property Development |
in EUR million |
6.8 |
| Results of operations |
in EUR million |
36.7 |
| Financial results |
In EUR million |
-42.8 |
| Net profit |
in EUR million |
6.2 |
| Recurring FFO |
in EUR million |
21.9 |
| Asset and financial data |
|
31 July 2014 |
| Balance sheet total |
in EUR million |
4,063.7 |
| Equity ratio |
% |
38.3% |
| Loan to Value (LTV) |
% |
49.1% |
| EPRA Net Asset Value |
in EUR million |
1,758.1 |
| Share data |
|
31 July 2014 |
| Recurring FFO per share |
in EUR |
0.22 |
| EPRA Net Asset Value per share |
in EUR |
17.65 |
Key Property Portfolio Data
| Asset Management |
|
31 July 2014 |
| Number of units |
Quantity |
52,546 |
| Monthly in-place rent |
in EUR per sqm |
4.69 |
| Vacancy rate |
% |
4.2% |
| Fair Value |
in EUR million |
3,504 |
| Net Rental Yield |
% |
5.6% |
| Property Sales |
|
Q1 2014/15 |
| Units sold |
Quantity |
172 |
| Marge on fair value - Unit Sales |
% |
62% |
| Marge on fair value - Block Sales |
% |
26% |
| Property Development |
|
Q1 2014/15 |
| Completed units |
Quantity |
176 |
| Completed total floor area |
In sqm |
11.214 |
Detailed information is provided in the Report on the 1st Quarter of 2014/15, which is available for download under http://www.buwog.com/en/investor-relations/financial-reports/
For additional information contact:
Media Inquiries Germany:
Nikolaus von Raggamby
RUECKERCONSULT
T: +49 (0)30 2844 987 - 40
vonraggamby@rueckerconsult.de
Investor Relations:
Holger Lüth
BUWOG AG
T +43 (0) 1 87828 1203
investor@buwog.com
Media Inquiries Austria:
Thomas Brey
LUSTIG+BREY
T +43 (0) 1 233 01 23 15
M +43 676 542 39 09
brey@lustigbrey.at
