DGAP-News: BUWOG AG / Key word(s): Final Results

2015-08-31 / 08:18

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- Operating result improves by 62.9% to EUR 158.5 million - Recurring FFO increases by 32.5% in year-on-year comparison* to EUR 91.7 million
- EPRA Net Asset Value per share increases by 3.4% to EUR 17.79 - Average interest rate on financial liabilities decreases by 0.31 percentage points to 2.14% p.a.
- Forecast of Recurring FFO in the current fiscal year 2015/16 of EUR 98 million - EUR 100 million

BUWOG AG has had an exceptionally successful fiscal year 2014/15, declaring an operating result of EUR 158.5 million (previous year: EUR 97.3 million). This represents an increase of 62.9%.

Recurring FFO developed in an equally positive way with an increase of 32.5% to EUR 91.7 million (previous year: EUR 69.2 million) slightly beating increased forecasts of the last quarter for Recurring FFO of EUR 88.0 - EUR 90.0 million.

The EPRA-NAV per share also increased, and is now at EUR 17.79 (previous year: EUR 17.21).

The scheduled closing of portfolio acquisitions of around 19,400 units in Germany in connection with the successful integration of the German management platform with more than 300 employees had a positive effect on results. As per the reporting date on 30 April 2015, BUWOG AG's property portfolio included 51,671 units with an area of approximately 3.6 million square metres and a fair value which, at around EUR 3.6 billion, was approximately 40.8% higher than at the end of the previous fiscal year. The annualised in-place rent increased - mainly due to the portfolio acquisitions - by 61.4 % to around EUR 198 million. The vacancy rate in the portfolio decreased year-on-year from 4.8% to 4.2%. Net rental yield increased over the course of the year from 4.9% to 5.6%
Continued strong margins in the Austrian Property Sales business area proved to be a key driver of the operational success. In the Unit Sales business area, 617 units (previous year: 553) were sold with a margin of 59% on fair value (previous year: 54 %) in the reporting period. The Unit Sales business area contributed a result of EUR 34.9 million (previous year: EUR 28.5 million) to the Recurring FFO.

Additionally in the business area Property Development a positive trend was also recorded. Here, the operating result of the division increased to EUR 12.5 million, more than double over the previous year. A total of 369 units were completed during the reporting year. Currently, a further 844 units with a total investment volume of around EUR 253 million are under construction. The BUWOG Group's project developments in Berlin, which are currently being intensified, are a key area in this regard. There are currently three new projects with a total of 394 units under construction in the German capital; further projects are expected to follow in the near future. Overall, the current development pipeline includes approximately 5,000 units in various stages of development with a total investment volume of around EUR 1.4 billion.

The company's cash effective financial result benefited from a sustained reduction in the average interest rate on borrowings of 0.31 percentage points to 2.14% p.a. with an average maturity of 16.9 years for financial liabilities.

Due to the successful performance, Executive Board and Supervisory Board will propose the payment of a dividend of EUR 0.69 per share for the year 2014/15.

"BUWOG AG developed very favourably in the fiscal year 2014/15. The excellent development in operating performance and the significant expansion of our activities in Germany via the integration of the DGAG portfolio, including its management platform, contributed to this, as did the successful stock exchange listing," said Daniel Riedl, CEO of BUWOG AG. "We have managed to maintain a balance between expansion through acquisitions on the one hand and continuous organic growth on the other. The whole BUWOG Group team performed exceptionally well in the last fiscal year, and it was their exemplary dedication that made these developments possible. With the envisaged dividend payment, we want our shareholders to participate in the outstanding economic success of this positive financial year. We want to continue this dividend policy until the dividends reach a payout ratio of 60 - 65% of Recurring FFO. As soon as we've reached this point, further dividend growth would then be pegged to further growth in recurring FFO."

Dr. Ronald Roos, CFO of BUWOG AG, added: "With the results of the past fiscal year, we have created a solid base for the years to come. We are now in a position to generate stable earnings in the operating business, and at the same time, we have sufficient financial resources to allow us to take advantage of opportunities for further acquisitions and project development."

The Executive Board anticipates continuously favourable market conditions throughout the current fiscal year 2015/16 and aims for an increase of Recurring FFO to EUR 98 million - EUR 100 million.
BUWOG AG's annual report with the financial statements for the fiscal year 2014/15 has been published today on the company's website: http://www.buwog.com/en/investor-relations/financial-reports
*Previous year comparisons are done on a pro forma basis. BUWOG AG has existed in its present form since the end of 2014, when it was restructured in connection with the spin-off from the IMMOFINANZ Group, with BUWOG AG as the parent company of the BUWOG Group.

Key Data




Key Property Portfolio Data




About 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 high-quality property portfolio comprises roughly 52,000 units, 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 in Vienna and Berlin). 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 contact:

Media Inquiries Germany:     Investor Relations:

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



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2015-08-31 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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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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