BUWOG AG: Results for the 2017/18 Financial Year
DGAP-News: BUWOG AG / Key word(s): Annual Results
Vienna, 31 August 2018
– Key indicator – Recurring FFO – increases by 10.4% to a new record level
– Successful expansion of new residential construction: earnings contribution by Property Development more than doubled to EUR 57.7 million, new construction pipeline grew by 7%, increase of nearly 60% in units under construction and 19.1% in completed units
– Further improvement of 8.2% in EPRA NAV per share to EUR 25.85
– Fair value adjustments of EUR 242.0 million to property portfolio according to CBRE
The results of Asset Management totalled EUR 157.3 million in 2017/18, for a slight year-on-year increase of 0.3%. The standing investment portfolio covered 48,828 units with roughly 3.4 million sqm as of 30 April 2018. Although the total number of units declined slightly (2016/17: 49,597), BUWOG added 100 units in Vienna and, for the first time, also 86 rental apartments in Berlin to the portfolio through its develop-to-hold activities during the past year. The monthly net in-place rent per sqm rose by 3.2% to EUR 5.34 and by 2.8% on a like-for-like basis as of 30 April 2018.
The fair value of the standing investments increased by 6.7% to approximately EUR 4.2 billion according to the appraisal by CBRE. The fair value adjustments to investment property totalled EUR 242.0 million as of 30 April 2018.
The earnings contribution by the Property Sales business area (sale of properties from the BUWOG portfolio) declined by 6.2% to EUR 41.6 million in 2017/18 (2016/17: EUR 44.3 million). In Unit Sales, a total of 567 standing investments were sold at a high margin of roughly 62% on fair value.
Property Development, BUWOG’s third business area, recorded outstanding performance in the construction of new apartments. Earnings in this segment more than doubled to EUR 57.7 million (2016/17: EUR 28.3 million). Completions rose by 19.1% to 722 units in 2017/18. The development pipeline grew by 7% to 10,847 units with an estimated total investment volume of EUR 3.2 billion and was further expanded through the acquisition of four new sites in 2017/18. The number of units under construction rose by 59% year-on-year to 2,340 units as of 30 April 2018. BUWOG’s stated goal is to further increase new apartment construction, also under the new principal shareholder Vonovia SE.
BUWOG also continued its conservative financing strategy during the 2017/18 financial year. The average interest rate on financial liabilities equalled 2.06% as of 30 April 2018 based on an average term of 11.9 years. The loan to value ratio (LTV) declined to 33.7% (2016/17: 44.1%). Net debt declined substantially in 2017/18 due to the successful cash capital increase, the conversion of convertible bonds and an increase in the carrying amount of investment property based on fair value adjustments as of 30 April 2018.
The annual report by BUWOG AG on the 2017/18 financial year is now available for download on the company’s website under https://www.buwog.com/en/investor-relations/financial-reports
Key data on the property portfolio
On the BUWOG Group
31.08.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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|Phone:||+43 1 87 8281130|
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|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Munich, Stuttgart, Tradegate Exchange; Vienna Stock Exchange (Official Market)|
|End of News||DGAP News Service|
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