BUWOG AG: Results of the first half-year of Financial Year 2014/15

• Results of operations EUR 72.3 million, Recurring FFO EUR 41.3 million
• Raise of Recurring-FFO-guidance from EUR 75 million to EUR 80 million - EUR 85 million
• Record result in Property Sales
• Appreciations in real estate portfolio, negative valuation effects in financial result
• EPRA-NAV/share of EUR 17.26 post dividend payment

Vienna, 22 December 2014. BUWOG AG's first half-year of the financial year 2014/15 produced highly satisfying results. In the period from 1 May until 31 October 2014 the company reached and in parts beat its targets concerning the most relevant performance figures.

Particularly satisfying is the development of the operating real estate business. The Results of operations amounted to EUR 72.3 million, Recurring FFO reached EUR 41.3 million.

The Asset Management business area continued to form the core of BUWOG AG's business model with Rental income amounting to EUR 85.2 million and a contribution to results of EUR 60.7 million. The BUWOG Group's portfolio currently contains approximately 52,500 units with approximately 3.6 million sqm of floor space. The German business performed particularly well. Here, the vacancy rate was reduced from 3.6% at the beginning of the reporting period to only 2.9% at the end of the reporting period.

The Property Sales business area continues to be extremely profitable. It contributed EUR 17.6 million to BUWOG AG's Results of operations. In the first half-year 267 apartments were sold through Unit Sales with a record margin on book value. Additionally two properties with a total of 48 units were sold though Block Sales as part of the optimisation of the portfolio generating a margin on book value of approximately 18%.

The Property Development business area contributed EUR 4.4 million to BUWOG AG's results. While the second quarter showed a decline in P&L-effective earnings, the BUWOG Group commands over a strong project pipeline that should result in an improved contribution to the Results of operations for the full year 2014/15 compared to the financial year 2013/14.

The positive development of the operating business, particularly the reduction in the vacancy rate and the successful Property Sales business area, facilitate an increase of the company's previous guidance for the full year results. While at its most relevant performance figure, Recurring FFO, the company previously anticipated a result of EUR 75 million, it now expects to achieve a range between EUR 80 million and EUR 85 million.

The Earnings Before Taxes (EBT) reached EUR 28.7 million for the half-year. Appreciations of EUR 35.2 million in the real estate portfolio as established in an external property valuation by CBRE had a positive impact on the result. On the other hand negative non-cash effects from the revaluation of loans and derivatives of EUR -58.7 million lead to a decisively negative financial result of EUR -82.4 million.

The successful development of the business is also reflected in the development of the EPRA-NAV/share. Despite the dividend distribution of EUR 0.69/share in the second quarter of the financial year 2014/15 the EPRA-NAV/share increased to EUR 17.26 as compared to EUR 17.21 per 30 April 2014. Considering the dividend payment this represents an increase of 4.3% within six months.

"For the BUWOG Group the year 2014 was the most important year in our history considering the initial public listing and the expansion of our activities into Germany. I am very pleased to end the 2014 calendar year with positive half-year numbers that confirm our sustainable and profitable business model", says Daniel Riedl, CEO of BUWOG AG.

Key Data

Earnings data
Rental revenues	in EUR million	85.2
Results of Asset Management	in EUR million	60.7
Results of Property Sales	in EUR million	17.6
Results of Property Development	in EUR million	4.4
Results of operations	in EUR million	72.3
Financial results	In EUR million	-82.4
Net profit	in EUR million	20.6
Recurring FFO	in EUR million	41.3

 

Asset and financial data
Balance sheet total	in EUR million	4,041.6
Loan to Value (LTV)	%	50.3%
EPRA Net Asset Value	in EUR million	1,719.4

 

Share data
Recurring FFO per share	in EUR	0.41
EPRA Net Asset Value per share	in EUR	17.26

 

Key Property Portfolio Data

Asset Management
Number of units	Quantity	52,467
Monthly in-place rent	in EUR pro m²	4.74
Vacancy rate	%	4.5%
Fair Value	in EUR million	3,532
Net Rental Yield	%	5.6%

 

Property Sales
Units sold	Quantity	315
thereof Unit Sales	Quantity	267
thereof Block Sales	Quantity	48

 

Property Development
Completed units	Quantity	275
Completed total floor area	in sqm	20,299

 

Detailed information is provided in the Report on the 1^st half-year 2014/15, which is available for download under http://www.buwog.com/en/investor-relations/financial-reports/

About the BUWOG Group

The BUWOG Group has grown over a 60-year history to become the leading German-Austrian full-service provider in the residential property sector. The company's high-quality property portfolio comprises roughly 52,500 units, which are equally distributed between Austria and Germany. The entire value chain in the residential sector is covered by BUWOG's activities in the areas of Asset Management (sustainable portfolio management and administration), Property Sales (profitable sale of individual apartments and portfolios) and Property Development (planning and construction of new buildings). Since the end of April 2014, the shares of BUWOG AG have traded on the stock exchanges of Frankfurt, Vienna and Warsaw.

For additional information please contact:

Media enquiries Germany:
Nikolaus von Raggamby
RUECKERCONSULT
T: +49 (0)30 2844 987 - 40
vonraggamby@rueckerconsult.de

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

Investor Relations:
Holger Lüth
BUWOG AG
T +43 (0) 1 87828 1203
investor@buwog.com