Vienna, 31 August 2017
 

BUWOG AG: Results for the 2016/17 Financial Year
 

- New record results for BUWOG: sound improvement of 4.4% in Recurring FFO
to EUR 117.2 million

- Further growth of 18.5% in EPRA NAV per share to EUR 23.90

- Value of investment property increases by EUR 335.1 million according to CBRE appraisal

- Net profit rises by 53% to EUR 366.7 million

- Intensification of Property Development: 32% increase in earnings contribution
to EUR 28.3 million; 25% growth in new construction pipeline, 52% more units
under construction, 44% more units completed

- Guidance for FY 2017/18: Recurring FFO of at least EUR 125 million

BUWOG AG, the German-Austrian residential property group, closed the 2016/17 financial year with extremely successful results and outperformed the previous 2015/16 record year. The continuation of this successful development was supported by operating income from the management of the standing investment portfolio as well as the Property Sales business area with the high-margin sale of units in Austria and a stronger focus on the Property Development business area through the new construction of rental apartments and condominiums.

Daniel Riedl, CEO of BUWOG AG, commented: "The Recurring FFO of EUR 117.2 million generated by our BUWOG team in 2016/17 represent a new record in the Group's history."

This Recurring FFO of EUR 117.2 million exceeded not only the original guidance of at least EUR 108 million, but also the revised forecast of at least EUR 113 million for a year-on-year increase of 4.4%. Substantial improvement was also recorded in the EPRA NAV per share, which rose by 18.5% over the previous year (EUR 20.18) to EUR 23.90 as of 30 April 2017.

"The BUWOG strategy has seen strong support by international investors in the last 12 months," explained Andreas Segal, Deputy CEO and CFO of BUWOG AG.

Net profit generated by the BUWOG Group rose by a significant 52.8% to a record EUR 366.7 million in 2016/17. It reflects the growth of the operating business as well as the strong value appreciation determined by the external appraiser CBRE in connection with the appraisal of the investment properties. The fair value adjustments totalled EUR 335.1 million as of 30 April 2017.

EBITDA (results of operations adjusted for valuation effects and period-based shifts as defined in IFRS 5) was slightly higher than the previous year at EUR 188.1 million (2015/16: EUR 187.2 million)

The earnings contribution from Asset Management, the largest business area in the BUWOG Group, amounted to EUR 156.9 million in 2016/17, for an increase of 5.3% over the previous year. The property portfolio included 49,597 standing investment units with approx. 3.4 million sqm at the end of the 2016/17 financial year. The monthly net in-place rent per square metre rose by 5.3% as of 30 April 2017, while the net in-place rent on a like-for-like basis was 4.5% higher. The revaluation of the standing investments led to an increase of 6.1% in fair value to approx. EUR 3.9 billion. Portfolio vacancies remained constant at a low 3.4% (2.2% after an adjustment for vacancies in apartments designated for Unit Sales).

Operating results in the Property Sales business area increased substantially by 16% from EUR 38.2 million to EUR 44.3 million. A total of 1,731 standing investment units were sold during 2016/17 (2015/16: 1,119), including 614 through Unit Sales (with a margin of approx. 57% on fair value) and 1,117 units through Block Sales. The latter are not included in the calculation of Recurring FFO.

A special achievement was the increase in income from the third business area, Property Development, and the further expansion of the project development pipeline. The earnings contribution from Property Development rose by 32% to EUR 28.3 million. Completions were 44% higher at 606 units in 2016/17. That represents an increase over BUWOG's guidance for these activities in the reporting year, and work is proceeding well to meet the long-term forecasts for the Property Development business area. The development pipeline had grown by 25% as of 30 April 2017, whereby approx. 3,700 units with a total investment volume of EUR 845 million are planned as "build to hold" and approx. 6,500 units with a total investment volume of approx. EUR 2,085 million as "build to sell". Of the approx. 6,500 units with a total investment volume of approx. EUR 2,085 million currently planned for sale, 1,105 units with a total investment volume of approx. EUR 306 million are now under construction and approx. EUR 135 million of this volume has already been invested. Future plans by the BUWOG Group continue to include the expansion of the new residential construction business in Berlin, Hamburg and Vienna, the three largest German-speaking cities. These activities will include an increase in the construction of condominium apartments for sale and the construction of rental apartments for the Group's portfolio in order to drive organic growth and improve the portfolio quality through new construction. Purchase contracts for six new land parcels were signed during the reporting year. BUWOG's goal is to expand the pipeline from the current volume of approx. 3,700 "build to hold" units to 5,500 units through the purchase of additional land parcels and to complete these projects within the next three to five years.

"An important factor for BUWOG's success is the combination of continuous portfolio management and the dynamic development business. New residential construction, which previously represented an add-on, has become the company's growth driver", added CEO Daniel Riedl.

The BUWOG Group further improved its financing parameters in 2016/17 with the successful placement of a five-year, zero coupon, EUR 300 million convertible bond and various refinancing measures. The average interest rate on financial liabilities equals only 1.78% (2015/16: 2.19%) based on an average remaining term of 11.8 years and an average fixed interest period of 9.7 years. The loan-to-value ratio (LTV), which the BUWOG Group would like to sustainably hold below 45%, continued to decline and equalled only 44.1% as of 30 April 2017 (2015/16: 47.6%).

"Backed by successful placements, the company's growth course - especially the development for the own letting portfolio - can continue", added Deputy CEO and CFO Andreas Segal in conclusion.

The Executive Board expects a continuation of the generally positive economic environment in the 2017/18 financial year and is forecasting Recurring FFO of at least EUR 125 million.

In view of the positive development of earnings during the past financial year, the Executive Board and Supervisory Board will make a proposal to the annual general meeting which calls for the payment of a EUR 0.69 dividend per share for 2016/17.

The annual report of BUWOG AG with the annual financial statements for the 2016/17 financial year was published today on the company's website under https://www.buwog.com/en/investor-relations/financial-reports

 

 

Key Data

 

Earnings data		2016/17	2015/16	Change
Net cold rent	in EUR million	214.4	199.4	7.5%
Results of Asset Management	in EUR million	156.9	149.0	5.3%
Results of Property Sales	in EUR million	44.3	38.2	16.1%
Results of Property Development	in EUR million	28.3	21.4	31.9%
EBITDA	in EUR million	188.1	187.2	0.5%
Financial results	In EUR million	-69.3	-41.0	-69.1%
Net profit	in EUR million	366.7	239.9	52.8%
Recurring FFO	in EUR million	117.2	112.2	4.4%
Recurring FFO per share	in EUR	1.17	1.13	4.3%

 

Asset and financial data		30 April 2017	30 April 2016	Change
Balance sheet total	in EUR million	5,019.7	4,444.1	13.0%
Loan to Value (LTV)	%	44.1%	47.6%	-3.6 PP
EPRA Net Asset Value	in EUR million	2,384.8	2,013.2	18.5%

 

Share data		30 April 2017	30 April 2016	Change
Share price	in EUR	24.79	18.38	34.9%
EPRA Net Asset Value per share	in EUR	23.90	20.18	18.5%

 

Key Property Portfolio Data

Asset Management		30 April 2017	30 April 2016	Change
Number of units	Quantity	49,597	51,058	-2.9%
Monthly net in-place rent	in EUR per sqm	5.18	4.92	5.3%
Vacancy rate	%	3.4%	3.4%	0.0 PP
Fair Value	in EUR million	3,942	3,716	6.1%
Gross Rental Yield	%	5.2%	5.4%	-0.2 PP

 

Property Sales		2016/17	2015/16	Change
Units sold	Quantity	1,731	1,119	54.7%
thereof Unit Sales	Quantity	614	635	-3.3%
thereof Block Sales	Quantity	1,117	484	>100%

 

Property Development		30 April 2017	2015/16	Change
Units under construction	Quantity	1,472	971	51.6%
Total investment volume	in EUR million	2,932	2,480	18.2%
Completed units	Quantity	606	420	44.3%

 

 

On the BUWOG Group
The BUWOG Group is the leading German-Austrian full-service provider in the residential property sector and can look back on 66 years of expertise. Its property portfolio covers more than 49,500 units which are located in Germany and Austria. BUWOG covers the entire value chain in the residential sector with its activities in the areas of Asset Management, Property Sales and Property Development. The shares of BUWOG AG have been listed on the Frankfurt, Vienna and Warsaw stock exchanges since the end of April 2014.

For additional information contact:
 

Investor Relations:

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

 

Media Inquiries Germany:

Michael Divé
BUWOG AG
T: +49 1590 4621 993
Michael.Dive@buwog.com

Media Inquiries Austria:

Thomas Brey

M&B PR, Marketing, Publikationen

T +43 (0) 1 233 01 23 15

M +43 676 542 39 09

brey@mb-pr.at