Vienna, 21 December 2017
BUWOG AG: Results for the first six months of 2017/18
- Year-on-year increase of 32.4% in Recurring FFO to EUR 76.3 million
- EPRA-NAV/share rises by 4.0% to EUR 24.87 (after dividend payment)
- Strong net profit of EUR 180.4 million
- Substantial year-on-year growth in earnings contribution from Property Development
to EUR 30.3 million
- Strong fair value adjustments of EUR 148.6 million
BUWOG AG continued its successful business development during the first half of the 2017/18 financial year. All three business areas recorded a year-on-year improvement in earnings, with particularly strong growth in Property Development - the business area which covers the company's new residential construction activities. Recurring FFO, BUWOG's central management indicator, rose by 32.4% year-on-year to EUR 76.3 million. EPRA NAV per share equalled EUR 24.87 as of 31 October 2017, for an increase of 4.0% since the end of the previous financial year (EUR 23.90).
Fair value adjustments for the first six months of 2017/18 totalled EUR 148.6 million and reflect, in particular, the high yield compression as well as the continuing upward trend for market rents in the core regions of Germany.
The Asset Management business area contributed EUR 80.4 million to earnings for the reporting period, which represents an increase over the EUR 78.5 million recorded in the first half of the previous financial year. The monthly net in-place rent improved slightly during the first half of 2017/18 to EUR 5.23 per sqm (30 April 2017: EUR 5.18) with like-for-like rental growth equalling 1.8%. The gross rental yield equalled 5.0% and the vacancy rate 3.9% (2.7%, excl. the vacancies required for unit sales).
Earnings in the Property Sales business area rose by 9.7% year-on-year to EUR 28.0 million in the first six months of 2017/18. These results were supported by Unit Sales of 366 apartments with a high margin of 63% on fair value.
The Property Development business area was further intensified and generated strong net operating income of EUR 30.3 million in the first half of 2017/18. Earnings were influenced, above all, by the transfer of the exclusive "Pfarrwiesengasse 23" project (Vienna), the "Southgate" project (Vienna) and the "Seefeld I" project (Berlin). A total of 204 units were transferred and recognised to income during the reporting period. As of 31 October 2017, the development pipeline held 10,227 units.
BUWOG's financing structure was further optimised during the first half of 2017/18. The equity ratio rose by 5.1 percentage points to 44.8%, among others, as a result of the EUR 305.6 million cash capital increase with subscription rights that was carried out at the beginning of June. Two key indicators remained low as of 31 October 2017: the average interest rate at 1.79% and the loan-to- value ratio at 38.8% (30 April 2017: 44.1%).
After the end of the reporting period on 31 October 2017, BUWOG received an investment grade rating of "BBB+ with stable outlook" from Standard & Poor's. In addition, Vonovia SE issued an announcement after the end of the reporting period that it intends to make a voluntary takeover offer for all outstanding shares and convertible bonds of BUWOG AG. Transparent information on both these subjects can be found on the BUWOG website under www.buwog.com.
The report by BUWOG AG on the first half of 2017/18 is now available for download on the company's website under https://www.buwog.com/en/investor-relations/financial-reports
Key Data
Earnings data |
|
H1 2017/2018 |
H1 2016/17 |
Change |
Net cold rent |
in EUR million |
104.8 |
104.4 |
0.4% |
Results of Asset Management |
in EUR million |
80.4 |
78.5 |
2.5% |
Results of Property Sales |
in EUR million |
28.0 |
25.5 |
9.7% |
Results of Property Development |
in EUR million |
30.3 |
2.1 |
>100.0% |
EBITDA |
in EUR million |
106.7 |
86.4 |
23.5% |
Financial results |
In EUR million |
-42.9 |
-84.9 |
49.5% |
Net profit |
in EUR million |
180.4 |
146.2 |
23.4% |
Recurring FFO |
in EUR million |
76.3 |
57.6 |
32.4% |
Recurring FFO per share |
in EUR |
0.69 |
0.58 |
20.1% |
Asset and financial data |
|
31 October 2017 |
30 April 2017 |
Change |
Balance sheet total |
in EUR million |
5,348.8 |
5,019.7 |
6.6% |
Loan to value (LTV) |
% |
38.8% |
44.1% |
-5.3 PP |
EPRA net asset value |
in EUR million |
2,791.5 |
2,384.8 |
17.1% |
Share data |
|
31 October 2017 |
30 April 2017 |
Change |
Share price |
in EUR |
24.76 |
24.79 |
-0.1% |
EPRA net asset value per share |
in EUR |
24.87 |
23.90 |
4.0% |
Key data on the property portfolio
Asset Management |
|
31 October 2017 |
30 April 2017 |
Change |
Number of units |
Quantity |
48,941 |
49,597 |
-1.3% |
Monthly net in-place rent |
in EUR per sqm |
5.23 |
5.18 |
1.0% |
Vacancy rate |
% |
3.9% |
3.4% |
0.5 PP |
Fair value of standing investments |
in EUR million |
4,078 |
3,942 |
3.4% |
Gross rental yield |
% |
5.0% |
5.2% |
-0.2 PP |
Property Sales |
|
H1 2017/2018 |
H1 2016/17 |
Change |
Units sold |
Quantity |
794 |
342 |
>100% |
thereof Unit Sales |
Quantity |
366 |
341 |
7.3% |
thereof Block Sales |
Quantity |
428 |
1 |
>100% |
Property Development |
|
31 October 2017 |
30 April 2017 |
Change |
Units under construction |
Quantity |
2,133 |
1,472 |
44.9% |
Total investment volume |
in EUR million |
2,971 |
2,932 |
1.3% |
|
|
H1 2017/2018 |
H1 2016/17 |
Change |
Completed units |
Quantity |
274 |
184 |
48.9% |
On the BUWOG Group
The BUWOG Group is the leading German-Austrian full-service provider in the residential property sector and can now look back on 66 years of experience. The property portfolio includes roughly 49,000 standing investment units in Germany and Austria. BUWOG covers the entire value chain in the residential sector with its three business areas: Asset Management, Property Sales and Property Development. The shares BUWOG AG have been listed on the exchanges in Frankfurt am Main, Vienna (ATX) and Warsaw since the end of April 2014.
For requests, please contact:
INVESTOR RELATIONS
Holger Lueth
BUWOG AG
Email: investor@buwog.com
T +43-1-878 28 1203
Jan-Hauke Jendrny
BUWOG AG
Email: investor@buwog.com
T: +49-30-338539 1873
MEDIA AUSTRIA
Thomas Brey
M&B PR, Marketing, Publications
Email: brey@mb-pr.at
T: +43-1-233 01 23-15
Michael Lippitsch
BUWOG AG
Email: michael.lippitsch@buwog.com
T: +43 664 60928 1710
MEDIA GERMANY
Michael Divé
BUWOG AG
Email: michael.dive@buwog.com
T: +49-1590-4621 993
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