DGAP-News: BUWOG AG / Key word(s): Quarter Results
2016-09-28 / 08:11
The issuer is solely responsible for the content of this announcement.

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- Successful start into the current financial year - Sound increase of 7.5% in Recurring FFO to EUR 27.0 million - Strong fair value adjustments of EUR 146.5 million - EPRA Net Asset Value per share rises substantially by 6.5% to EUR 21.49 - Successful expansion of development pipeline by approx. 800 units - Recurring FFO: forecast of at least EUR 108 million in 2016/17 confirmed
The development of BUWOG AG in the first quarter of 2016/17 confirms the success of the company's strategic focus. Sound performance was again recorded, in particular, by the Asset Management and Property Sales business areas, while the earnings contributions from Property Development are expected during the following three quarters. The purchase of additional land sites and the further significant increase in the development pipeline have expanded the basis for future earnings growth. Recurring FFO, the key performance indicator used by the Group, rose by 7.5% year-on-year to EUR 27.0 million. EPRA NAV (net assets per share calculated in accordance with EPRA guidelines) also improved by a substantial 6.5% over the end of the previous financial year (EUR 20.18) to EUR 21.49 as of 31 July 2016.

"Results for the first three months of 2016/17 clearly demonstrate the commitment of the entire BUWOG team to the implementation of our corporate strategy", commented BUWOG CEO Daniel Riedl. "Our positioning with the Asset Management, Property Sales and Property Development business areas has proven to be a reliable success model - above all in a market environment like the one we are currently experiencing - and will also safeguard sustainable high profitability and further growth in the future."
Asset Management, the largest business area in the BUWOG Group, recorded operating results of EUR 38.5 million in the first quarter of 2016/17. Operating results in the Property Sales and Property Development business areas totalled EUR 9.6 million and EUR -0.9 million, respectively. The BUWOG Group generated EBITDA of EUR 39.2 million during the reporting period. In view of the dynamic market development the German portfolio was valued by the independent external appraisers at CBRE . The resulting fair value adjustments of EUR 146.5 million reflect, in particular, the high yield compression at the core locations in Germany. The fair value of the standing investments has risen therefore by 3.7% to EUR 3.9 billion since the end of the 2015/16 financial year.
EBT amounted to EUR 102.2 million and net profit to EUR 83.9 million for the first quarter of 2016/17.

Annualised in-place rent increased 2.6% over the level at the end of the previous financial year to EUR 206 million as of 31 July 2016 (30 April 2016: EUR 201 million). The like-for-like growth in rents equalled 4.2%, and vacancies remained low at 3.6%.

The intensification of Property Development activities in recent months was followed by the expansion of the development pipeline during the first quarter of 2016/17 through the purchase of two additional land sites, which will be used to construct roughly 800 units. The development pipeline now covers approx. 8,900 units with a total investment volume of EUR 2.54 billion and also reflects BUWOG's increased focus on the development of rental apartments for its own portfolio in Germany. In view of the rising property prices on the German market, this will support the gradual expansion of the Group's standing investment portfolio independent of further property acquisitions.

The BUWOG Group retained its very conservative financing structure during the first quarter of 2016/17. This is reflected, above all, in the equity ratio of 38.0% and the low average interest rate of 2.17% on financial liabilities. The loan-to-value ratio (LTV) went down to only 46.4%. The issue of a convertible bond after the end of the reporting period in September 2016 - with a volume of EUR 300 million, an interest rate of 0.00% and an initial conversion price of EUR 31.40 - further reduced the average interest rate on BUWOG's financial liabilities to 1.90%.
"The successful issue of the convertible bond and the extremely favourable conditions in peer group comparison underscore the strong interest in BUWOG as a capital market product", explained Andreas Segal, Deputy CEO and CFO of BUWOG AG. In our eyes BUWOG has an attractive business model in attractive markets at an attractive point in the lifecycle of the German real estate market."

Based on the successful development of business in the first quarter, the company confirms its forecast for Recurring FFO at least EUR 108 million in the full 2016/17 financial year.

The report by BUWOG AG on the first quarter of 2016/17 is now available for download on the company's website under https://www.buwog.com/en/investor- relations/financial-reports

Key Figures




Key Property Portfolio Data




On the BUWOG Group
The BUWOG Group has grown over a 65-year history to become the leading German-Austrian full-service provider in the residential property sector. The company's property portfolio covers roughly 50,900 units in Germany and Austria. The entire value chain in the residential sector is covered by BUWOG's activities in the areas of Asset Management, Property Sales and Property Development. The BUWOG share has been listed on the stock exchanges in Frankfurt am Main, Vienna (ATX) and Warsaw since the end of April 2014.

For additional information contact:

Media Inquiries Germany:     Investor Relations:

Peter Dietze-Felberg         Holger Lüth
RUECKERCONSULT GmbH          BUWOG AG
T: +49 (0)30 2844 987-62 T +43 (0) 1 87828 1203 dietze@rueckerconsult.de holger.lueth@buwog.com

Media Inquiries Austria:

Thomas Brey
M&B PR, Marketing, Publikationen GmbH
T +43 (0) 1 233 01 23 15
M +43 676 542 39 09
brey@mb-pr.at

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2016-09-28 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English Company: BUWOG AG Hietzinger Kai 131 1130 Wien Austria Phone: +43 1 87 8281130 Fax: +43 1 87 8285299 E-mail: investor@buwog.com Internet: www.buwog.com ISIN: AT00BUWOG001 WKN: A1XDYU Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Munich, Stuttgart, Tradegate Exchange; Wien (Amtlicher Handel / Official Market)  
   
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