BUWOG AG - Results of the first half-year of Financial Year 2014/15

POLISH FINANCIAL SUPERVISION AUTHORITY

UNI - EN REPORT No 31 / 2014

Date of issue: 2014-12-22

Short name of the issuer

BUWOG AG

Subject

Results of the first half-year of Financial Year 2014/15

Official market - legal basis

Art. 56 ust. 1 pkt 1 Ustawy o ofercie - informacje poufne

Unofficial market - legal basis

Contents of the report:

BUWOG AG: Results of the first half-year of Financial Year 2014/15 • Results of operations EUR 72.3 million, Recurring FFO EUR 41.3 million • Raise of Recurring-FFO-guidance from EUR 75 million to EUR 80 million - EUR 85 million • Record result in Property Sales • Appreciations in real estate portfolio, negative valuation effects in financial result • EPRA-NAV/share of EUR 17.26 post dividend payment Vienna, 22 December 2014. BUWOG AG's first half-year of the financial year 2014/15 produced highly satisfying results. In the period from 1 May until 31 October 2014 the company reached and in parts beat its targets concerning the most relevant performance figures. Particularly satisfying is the development of the operating real estate business. The Results of operations amounted to EUR 72.3 million, Recurring FFO reached EUR 41.3 million. The Asset Management business area continued to form the core of BUWOG AG's business model with Rental income amounting to EUR 85.2 million and a contribution to results of EUR 60.7 million. The BUWOG Group's portfolio currently contains approximately 52,500 units with approximately 3.6 million sqm of floor space. The German business performed particularly well. Here, the vacancy rate was reduced from 3.6% at the beginning of the reporting period to only 2.9% at the end of the reporting period. The Property Sales business area continues to be extremely profitable. It contributed EUR 17.6 million to BUWOG AG's Results of operations. In the first half-year 267 apartments were sold through Unit Sales with a record margin on book value. Additionally two properties with a total of 48 units were sold though Block Sales as part of the optimisation of the portfolio generating a margin on book value of approximately 18%. The Property Development business area contributed EUR 4.4 million to BUWOG AG's results. While the second quarter showed a decline in P&L-effective earnings, the BUWOG Group commands over a strong project pipeline that should result in an improved contribution to the Results of operations for the full year 2014/15 compared to the financial year 2013/14. The positive development of the operating business, particularly the reduction in the vacancy rate and the successful Property Sales business area, facilitate an increase of the company's previous guidance for the full year results. While at its most relevant performance figure, Recurring FFO, the company previously anticipated a result of EUR 75 million, it now expects to achieve a range between EUR 80 million and EUR 85 million. The Earnings Before Taxes (EBT) reached EUR 28.7 million for the half-year. Appreciations of EUR 35.2 million in the real estate portfolio as established in an external property valuation by CBRE had a positive impact on the result. On the other hand negative non-cash effects from the revaluation of loans and derivatives of EUR -58.7 million lead to a decisively negative financial result of EUR -82.4 million. The successful development of the business is also reflected in the development of the EPRA-NAV/share. Despite the dividend distribution of EUR 0.69/share in the second quarter of the financial year 2014/15 the EPRA-NAV/share increased to EUR 17.26 as compared to EUR 17.21 per 30 April 2014. Considering the dividend payment this represents an increase of 4.3% within six months. "For the BUWOG Group the year 2014 was the most important year in our history considering the initial public listing and the expansion of our activities into Germany. I am very pleased to end the 2014 calendar year with positive half-year numbers that confirm our sustainable and profitable business model", says Daniel Riedl, CEO of BUWOG AG. Detailed information is provided in the Report on the 1st half-year 2014/15, which is available for download under http://www.buwog.com/en/investor-relations/financial-reports/

Annexes

File Description

BUWOG_Q2_EN.PDF Report on the 1st half-year 2014/15

BUWOG AG

(fullname of the issuer)

BUWOG AG

(short name of the issuer) (sector according to clasification of the WSE in Warsow)

1130 Wiedeń

(post code) (city)

Hietzinger Kai 131

(street) (number)

[phone] [phone]

(phone number) (fax)

[email protected] www.buwog.com

(e-mail) (web site)

ATU68290645

(NIP) (REGON)

SIGNATURE OF PERSONS REPRESENTING THE COMPANY

Date Name Position / Function Signature

2014-12-22 Mag.Daniel Riedl FRICS CEO