BUWOG GROUP COMPANY PRESENTATION US ROADSHOW DECEMBER 2014
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BUWOG GROUP COMPANY PRESENTATION US ROADSHOW DECEMBER 2014
OVERVIEW
Overview
BUSINESS MODEL
AUSTRIA & RESIDENTIAL
GERMANY ONLY
ASSET
MANAGEMENT
PROPERTY PROPERTY
DEVELOPMENT SALES
CASH
REINVESTMENT DIVIDEND
STRONG BALANCE Trading in:
SHEET VIENNA
50% LTV
FRANKFURT
2.26% Ø interest rate(1)
WARSAW
15 yr Ø maturity(1)
(1) Based on outstanding financial liabilities as of 31 July 2014. The hedge for the mortgage loan DGAG acquisition is still in progress.
3
Overview
PROPERTY PORTFOLIO
Geographic overview Statistics of standing investment portfolio
as of 31 Jul 2014
Annualised
Total floor in-place Fair Net
No. of area rent(3) value(4) rental Vacancy
units in sqm in EURm in EURm yield(5) rate(6)
Federal
12,013 945,401 59 1,315 4.5% 3.2%
capitals
Vienna 7,007 613,219 36 1,000 3.6% 4.0%
Berlin 5,006 332,182 23 315 7.3% 1.9%
State
capitals and
19,779 1,285,082 69 1,070 6.5% 2.8%
major
cities(1)
Suburban
8,365 590,175 31 537 5.7% 4.5%
areas(2)
Rural areas 12,389 826,132 38 582 6.5% 7.0%
Total 52,546 3,646,791 197 3,504 5.6% 4.2%
Total
26,076 1,998,836 93 2,117 4.4% 5.1%
Austria
Total
26,470 1,647,954 104 1,387 7.5% 3.0%
Germany
(1) More than 50,000 inhabitants and a significant share of the portfolio > approx. 600 units
(2) The immediate catchment area up to about 15 km around federal capitals, state capitals and major cities, as
Federal capitals well as Hamburg
(3) Based on monthly in-place rent (excluding utilities) as of 31 July 2014
State capitals and major cities (4) Based on fair value of standing investment as of 31 July 2014
(5) Annualised total in-place rent (based on monthly in-place rent excluding utilities as of the reporting date) in
Suburban areas
relation to fair value
Rural areas (6) Based on sqm
Asset Management
Property Sales
Property Development
4
ASSET MANAGEMENT
Asset Management
VALUE CREATION THROUGH ASSET
MANAGEMENT AND PORTFOLIO OPTIMISATION
BUWOG Focus Asset Management BUWOG Strategy
Steady increase in rental income based on active asset
SECTOR FOCUS:
management and high occupancy LOW
RESIDENTIAL Further improvement on cost efficiency for proper RISK
ONLY management and maintenance
STABLE RENTS,
HIGH OCCUPANCY
Return-oriented expansion of property portfolio in
Germany with the goal of approx. 2,000 to 4,000 units
per year
REGIONAL FOCUS:
Continuous optimisation of standing investment
AUSTRIA/ portfolio through cycle-optimised Block Sales
GERMANY
Property development into the portfolio in Vienna
Targeted mid-term contribution
to income: PORTFOLIO
FUNCTIONAL OPTIMIZATION
FOCUS:
FULL SERVICE HIGH
PROVIDER approx. 70% UPSIDE
6
Asset Management
STRUCTURE OF STANDING INVESTMENT
PORTFOLIO
BUWOG Group portfolio split Highlights Asset Management
as of 31 July 2014
Austria Germany Total Expansion of property portfolio to 52,500 units and 3.6m sqm total floor
Number of units 26,076 26,470 52,546
area due to acquisition of DGAG and Apollo portfolio as per July 2014
Total floor area (sqm) 1,998,836 1,647,954 3,646,791 60% increase of annualised in-place rent to EUR 197m, as well as
Fair value (EUR m) 2,117 1,387 3,504 improvement of Net Rental Yield from 4.9% to 5.6% due to growth of
German portfolio
Annualised in-place
93 104 197
rent (EUR m)
Active management leads to an increase of net cold rent by 3.6% on a
Net Rental Yield 4.4% 7.5% 5.6% like-for-like basis 31 July 2014 vs. 31 July 2013
Vacancy rate 5.1% 3.0% 4.2%
Vacancy rate decreased by 60bps q-o-q given high occupancy rate in
DGAG portfolio
Net Rental Yield Vacancy rates
as of 31 July 2014 as of 31 July 2014
7,6% 7,4% 7,5%
5,0% 5,1%
4,8% 4,6% 4,8%
5,6% 4,2%
4,7% 4,9% 3,6%
4,3% 4,4% 4,4% 3,0%
2,4%
30 April 2013 30 April 2014 31 July 2014 30 April 2013 30 April 2014 31 July 2014
Austria Germany Total Austria Germany Total
7
Asset Management
PORTFOLIO STATISTICS
Construction Period Unit Size
as of 31 Jul 2014 (as % of lettable space) as of 31 Jul 2014 (as % of lettable space)
Ø Unit Size in Austria: 77 m2
Ø Unit Size in Germany: 62 m2
60% Ø Unit Size Portfolio: 69 m2
50% 60% 55%
50% 51%
48%
39%
50%
40% 36%
40%
30% 31%
30%
22% 22% 30% 23%
17% 19%
20% 15% 16% 20%
12% 10% 12% 12%
9% 9% 9%
7% 7% 7% 8% 7%
10% 1% 10% 5% 4%
2% 3% 1%
0% 0% 0%
0% 0%
Up to 19201921-1946 1947-1959 1960-1979 1980-1989 1990-1999 2000 Smaller than 40 – 60 m² 61 – 80 m² 81 – 100 m² > 100m²
onwards 40 m²
Austria Germany Total Austria Germany Total
Number of Floors Monthly in-place rent (net cold rent)
as of 31 Jul 2014 (as % of lettable space) as of 31 Jul 2014 (in EUR per sqm)
80% 71% Austria Germany Total
64%
58% Less than 3.00 24% 0% 13%
60%
3.01-4.00 35% 5% 21%
40%
4.01-5.00 23% 28% 25%
25% 22%
19% 17%
20% 14% 5.01-6.00 10% 53% 30%
10%
6.01-7.00 5% 11% 8%
0%
0 to 4 floors 5 to 6 floors More than 6 floors Higher than 7.00 2% 2% 2%
Austria Germany Total
8
Asset Management
PORTFOLIO BY RENT RESTRICTION
Comments Portfolio Split by Type of Rent
as % of in-place rent as of 31 July 2014
A part of the Group’s portfolio, both in Austria and in Germany was
constructed using public subsidies and is therefore subject to rent Other (incl. commercial)
6% Austria
restriction such as e.g. WGG (cost covering rent) in Austria 5%
Rent increases are limited by federal legislation Austria
39%
In Austria, rent potential can be unlocked through tenant fluctuation Unrestricted/
Restricted at Market level
and changes in e.g. amortisation and interest rates which can be 58% 36%
charged on to the tenants Germany
Germany 31%
In addition, property management costs can be recovered from tenants 19%
in Austria
Type of Rent by Country as of 31Jul14
Type Monthly in-place Rent at Period End
in EUR as % of total
Austria Unrestricted / at market level MRG (1) 427,740 3%
WGG Market-based rent (2) 258,529 2%
Unregulated rent 50,327 0%
Austria Restricted WGG Cost covering (3) 5,033,473 31%
Guideline-based rent (4) 1,372,715 8%
Germany Unrestricted Unregulated rent 5,099,541 31%
Germany Restricted Cost covering 3,063,703 19%
Others (including commercial) 1,098,379 6%
Total 16,404,407 100%
(1) MRG see Appendix “BUWOG RENT MODELS IN AUSTRIA”
(2) “WGG (market-based rent)” see Appendix “BUWOG RENT MODELS IN AUSTRIA”
(3) “WGG Cost covering” see Appendix “BUWOG RENT MODELS IN AUSTRIA”
(4) Guideline-based rent see Appendix “BUWOG RENT MODELS IN AUSTRIA”
9
Asset Management
REGION NW GERMANY –
POSITIVE DEVELOPMENT OF HOUSEHOLDS (2013 - 2025)
Development of Private households (2013 - 2025)
Total population in Germany to shrink from currently 80.7m to
Bavaria 7,30% 79.1m (2025) based on demographic change
Baden Wuerttemberg 6,59% The number of private households in BUWOG target regions
Hamburg 5,16% Hamburg, Schleswig Holstein, Hassia and Lower Saxony will
Berlin 3,30% grow over proportionally to the forecast German average until
Schleswig - Holstein 2,40%
2025
Hassia 2,34% Smaller types of households will be prevalent throughout
North Rhine Westphalia 1,93% Germany until 2025
Rhineland-Palatinate 1,30%
Overhang of demand
Lower Saxony 0,69%
Bremen 0,11%
Despite consequences of demographic change further
household growth is expected in larger metropolitan areas
-1,70% Brandenburg
and university cities in Germany
-1,85% Mecklenburg Pomerania
-3,83% Saarland
Two effects are responsible:
-7,85% Thuringia a) Trend towards smaller households („Single“-
-8,01% Saxony households)
and
-11,39% Saxony-Anhalt
b) Increasing attractiveness of
-15% -10% -5% 0% 5% 10% cities (i.a. cultural and educational infrastructure).
BUWOG target regions
Source: German Federal Office for Statistics, forecast bulwiengesa, IBB research
10Asset Management
NW GERMANY
BUWOG UNITS IN GROWING CITIES
Development of households, rents and property prices
Household Rent Property prices
Residential BUWOG
development development
in 2013 in Growth rate space demand units (1)
(market) (market)
thousands 2013 – 2025 2013 - 2025 as % of total
2011 – 2025 2011 – 2025
Berlin 1.989 3.3% 16.8% 16.6% 10.5%
Hamburg 992 5,2% 4.7% 14.6% 5.4%
Lueneburg 87 5,6% 8.6% 11.4% 1.3%
Braunschweig 141 6,8% 8.2% 12.9% 2.5%
Kassel 104 -0,1% 6.2% 23.7% 2.9%
Luebeck 124 0,5% 9.8% 19.2% 11.9%
Kiel 138 6,2% 10.9 14.1% 6.9%
(1) Cities and suburban area as per 30 April 2014
Source: German Federal Office for Statistics, forecast bulwiengesa, IBB research
Focus on growing cities
During the years 2011 until 2013 continuous positive development of rental prices and property prices
Berlin with a strong growth in residential space demand as well as positive development of rent and property prices
Large growth in households in Braunschweig, Kiel, Lueneburg and Hamburg
Kassel with approx. constant level of households and residential space demand
11Asset Management
SAMPLE OF STANDING INVESTMENTS
IN AUSTRIA
53 units | 4,579 sqm lettable area
Moselgasse 2-4, Construction year: 2007
1100 Vienna In-place rent per sqm per month: EUR 5.55
Rental system: MRG
39 units | 4,107 sqm lettable area
Salesianergasse Construction year: 1928 (renovated in 2010)
1b, 1030 Vienna In-place rent per sqm per month: EUR 2.70
WGG -> Cost-Covering Rent (1)
34 units | 2,089 sqm lettable area
Am Hofacker 1-7a,
Construction year: 1950
8010 Graz
In-place rent per sqm per month: EUR 2.75
WGG -> Guideline-Based Rent (1)
(1) see Appendix “BUWOG RENT MODELS IN AUSTRIA”
12Asset Management
SAMPLE OF STANDING INVESTMENTS
IN GERMANY
Tempelhofer
Damm,
119 units | 10,454 sqm lettable area
Berlin Tempelhof,
Construction year: 1927
Peter-Strasser-Weg
In-place rent per sqm per month: EUR 5.71
1; Thuyring 2;
Unrestricted Rent
Tempelhofer Damm
64-76
1,194 units | 88,463 sqm lettable area
Construction year: 1960
Portfolio Kassel I
In-place rent per sqm per month: EUR 4.09
Unrestricted Rent
Eckernförde, 78 units | 4,567 sqm lettable area
Langemarckstr.1-3 Construction year: 2000
(DGAG) In-place rent per sqm per month: EUR 5.11
Restricted Rent (subsidised)
13PROPERTY SALES
Property Sales
HIGH MARGIN FROM UNIT SALES AND
CONTRIBUTION TO RECURRING FFO
BUWOG Focus Property Sales BUWOG Strategy
Substantial medium- & long-term potential for approx.
SECTOR FOCUS:
13,000 Unit Sales & approx. 4,000 Block Sales LOW
RESIDENTIAL Substantial proceeds from Unit Sales & high RISK
ONLY contribution to Recurring FFO
SUBSTAINABLE
UNIT SALES
Units Sales projected to total roughly 500 units per
year
REGIONAL FOCUS:
Strong track record with high margins (approx. >50%)
on Unit Sales in Austria
AUSTRIA/
GERMANY Margins on Block Sales significantly above fair value in
recent years
HIGH MARGINS
Targeted mid-term contribution THROUGH SALES
to income: approx. 15% OF SUBSIDISED
FUNCTIONAL
UNITS
FOCUS:
FULL SERVICE HIGH
PROVIDER
UPSIDE
15Property Sales
LONG-LASTING POTENTIAL FOR VALUE
CREATING SALES ACTIVITY
Sub-portfolio eligible for disposal over time with clear differentiation between recurring Unit Sales and opportunistic Block
Sales
Cluster Unit Sales Block Sales
Sample
properties
Sales to owner-occupiers in selected regions Sale of properties or portfolios
Clear Differentiation
Highly profitable with strong sustainable contribution to Block sales in rural locations to optimise the portfolio
Recurring FFO
Key facts Optimised mix between internal and external sales channels
Optimised mix of internal and external sales channels
Margins on Block Sales significantly above fair value in
Track record with high profitability; margins of approx. recent years
50%(1)
Fair Value(2) Fair Value(3) Fair Value(2) Fair Value(3)
Units (in EURm) in EUR per sqm Units (in EURm) in EUR per sqm
Vienna 5,585 757 1,619 Vienna 539 75 1,552
Sales cluster
Rest of Austria 7,835 642 1,095 Rest of Austria 3,359 154 644
Total 13,420 1,399 1,327 Total 3,898 230 798
Contribution to
Recurring FFO
Recurring revenues through Unit Sales Block Sales if attractive opportunities with
(1) On fair value
adequate margins arise
(2) As per 31 July 2014;
(3) As per 31 July 2014; annualised total in-place rent (based on monthly in-place rent excluding utilities as of the reporting date) in relation to fair value
16Property Sales
PROPERTY SALES
Highlights Property Sales in Q1 2014/15 Strategic portfolio cluster split
fair value as of 31 July 2014
Unit Sales:
Successful start into FY 2014/15 with 124 sold units at a Unit Sales
margin of approx. 62% on fair value (as part of
core portfolio Core portfolio
40%) Total 93%
Block Sales: fair value:
EUR 3,504m
Disposal of 2 properties, including 48 units at a margin of
approx. 26% on fair value Block Sales
7%
Units sold Realised average price Margin on fair value
in EUR per sqm in %
2,292 2.133
2.015 1.960 62
1.784 55 54
1,666
1.739
1.088 1.094
1.199 805 26
733 713
15
172 11
467 553 48
124
FY FY Q1 FY FY Q1 FY FY Q1
2012/13 2013/14 2014/15 2012/13 2013/14 2014/15 2012/13 2013/14 2014/15
Unit Sales Block Sales Unit Sales Block Sales Total Unit Sales Block Sales
17Property Sales
SAMPLE OF UNIT SALES IN FY 2013/14
10 units | 744 sqm floor area
Bonygasse 31, Avg. sale price per sqm: EUR 2,350
Vienna Avg. in-place rent per sqm per month: EUR 6.85
Remaining total floor area: 4,528 sqm
10 units | 728 sqm floor area
Rustenschacher-
Avg. sale price per sqm: EUR 3,699
allee 30,
Avg. in-place rent per sqm per month: EUR 3.22
Vienna
Remaining total floor area: 3,575 sqm
2 units | 106 sqm floor area
An der Furt 14,
Avg. sale price per sqm: EUR 2,220
Innsbruck
Avg. in-place rent per sqm per month: EUR 3.10
Remaining total floor area: 1,471 sqm
18Property Sales
SAMPLE OF BLOCK SALES IN FY 2013/14
104 units | 6,204 sqm floor area
Willertgasse 6-22, Sale in 6/2013
Wiener Neustadt Sales Price: EURm 4,620
Sales Price per sqm: EUR 745
24 units | 1,440 sqm floor area
Joseph-Haydn-
Sale in 2/2014
Strasse 14-20,
Sales Price: EURm 800
Amstetten
Sales Price per sqm: EUR 556
8 units | 960 sqm floor area
Kaserngasse 9,
Plus a lot area of 23,230 sqm incl. Forest
Körnerschlössl,
Sale in 4/2014
Vienna
Sales Price: EURm 2,600
Sales Price per sqm: EUR 2,708
19PROPERTY DEVELOPMENT
Property Development
LONGLASTING TRACK RECORD FOR
RESIDENTIAL DEVELOPMENTS
BUWOG Focus Property Development BUWOG Strategy
Focus on protection of high profitability and risk
minimisation
LOW
SECTOR FOCUS:
RESIDENTIAL Development pipeline of approx. EUR 1.5 billion in
RISK
OVER 60 YEARS
ONLY Vienna and Berlin
OF DEVELOPMENT
EXPERIENCE
Balanced project pipeline in different development
stages
REGIONAL FOCUS:
Strong internal sales structure in Vienna and Berlin to
support sales
VIENNA/
BERLIN Profitable business development to generate Recurring
FFO
Targeted mid-term contribution HIGH MARGINS ON
to income: approx. 15% DEVELOPMENT
FUNCTIONAL
PROCEJTS
FOCUS:
FULL SERVICE HIGH
PROVIDER
UPSIDE
21Property Development
VIENNA
Market characteristics Rent development
21. District
Floridsdorf
19. District
Growth of population between Increasing number of households
Doebling
20. 2013 and 2025 forecast at 9.6% creates increasing demand
District
Increase of households between Dampening effect on prices from
Brigitten-
18.
17. au 22. District
9. Donaustadt
14. District 16.
8.
2013 and 2025 expected at 9.1% high share of regulated rents
Penzing 1 2. installed by legal regime and
Low share of residential living cost
7.
.
15. 6. 3
5. 4. . ownership structure
13. District
Hietzing
of 23% of household income
12.
Property prices increased stronger
Strong tenant market with low ratio
11. District
10. District
Simmering
Favoriten
in recent years than rents
23. District Liesing of ownership at 14%
Overhang of demand leads to
Relatively low new residential
higher market rents in non-regulated
construction volume
Development Standing investments segment
Strong tenant market Development 2013 - 2025
Vienna Austria
Ownership Ownership Demand for
14% 57% units p.a.
Avg. new
Population construction
Households p.a. 2010 – 2013
10,000
9.6 % 9.1 %
3,673
Source: bulwiengesa according to Statistik Austria
86% 43%
Lease Lease
based on households
Source: bulwiengesa
22Property Development
BERLIN
Market characteristics Rent development
Reinickendorf Pankow
Population growth from 3.7 % until Based on the attractiveness of the city
2025 forecast demand outgrows supply
Spandau
Mitte Marzahn-
Hellersdorf
Number of households to decrease Overhang of demand leads to higher
Charlottenburg-
Wilmersdorf
by 0.7% until 2025 market rents
Tempelhof-
Schöneberg Low share of residential costs of 24 % Market rents can be realised in new
Steglitz-
Zehlendorf
Neukölln Treptow-
of household income lettings
Köpenick
Strong tenant market with low ratio of Market development reflected in
of 15 % privately owned homes Berlin rent index (Mietspiegel) – legal
basis for rent increases in existing
Comparatively low residential
agreements
construction volume
Development Standing investments
Strong tenant market Development 2013 - 2025
Berlin Germany
Ownership Ownership Demand
15% 46% for units p.a. Avg. new
construction
p.a. 2010 - 2012
Population 9,300
Households
3.7 % 3,684
3.3 %
Source: bulwiengesa, IBB research
85%
Lease 54%
Lease
based on households
Source: bulwiengesa
23Property Development
PRODUCT DEVELOPMENT MATRIX
Subsidised rental Subsidised Condominiums Investment Global exit
apartments condominiums apartments
Standing Investment Regional customers Regional customers National customers Institutional investors
Built for and foundations
Portfolio
Vienna Total: 1,183 units Total: 161 units Total: 1,823 units Total: 713 units Total: 48 units
(3,928 units) (88,978 sqm) (12,787 sqm) (153,425 sqm) (44,944 sqm) (35,054 sqm)
Breitenfurter Str. 239 Wiener Straße Pfarrwiesengasse Universumstraße Boschstraße
134 units 44 units 131 units 50 units 41 units
Sample
projects
Berlin Total: 1,540 units Total: 52 units
(1,592 units) (141,094 sqm) (3,810 sqm)
Westendpark Scharnhorststr. 4
124 units 52 units
Sample
projects
Total
5,500 units 1
(1) The product development matrix comprises roughly 700 units that are allocated to land reserves
24Property Development
DEVELOPMENT STATUS
Comments Property Portfolio as of 31 July 2014 (in EURm)
Investment properties Standing investment 3,489
The project pipeline is balanced with 3,617
Pipeline projects (1) 128
respect to the different development
Non – current
stages assets Other tangible assets 8 Owner- occupied properties 8
Pipeline reflects an increasing proportion Investment properties under
12 Build in inventory 12
of owner-occupied and private investor construction
demand Non-current assets held for sale 15 Standing investments 15
Current
In the long term, target is to reach a assets Inventories 139 Development projects 139
50/50 portfolio split between Austria and
Total portfolio 3,790 3,790
Germany due to large growth in
Germany (1) thereof EUR 3m standing investments
Investment value of development Property development activity
projects as of 31 July 2014
as of 31 July 2014 655
493
374
Berlin
EUR 491m
Total
investment volume: 176
EUR 1.5 bn
Vienna
EUR 979m
FY Q1
2013/14 2014/15
Completed units Units under construction
25Property Development
SAMPLE PROJECTS IN VIENNA
COMPLETED IN FY 2013/14
7Hirten4Living, 73 condominium units
Basler Gasse 65, Unit sizes ranging from 42 sqm to 95 sqm
Vienna Handover to occupants in December 2013
Wohnquartier 22, 46 condominiums and investment units
Wulzendorfstrasse, Unit sizes ranging from 55 sqm to 109 sqm
Vienna Handover to occupants in April 2014
Danubio,
108 condominium units
Jedleseer Strasse
Unit sizes ranging from 45 sqm to 121 sqm
5, Vienna
Completed in July 2013
26Property Development
SAMPLE PROJECTS IN BERLIN
124 condominium units and 119 underground parking spaces
Westendpark, Residential space: 12,345 sqm
Tharauer Allee, Construction started in March 2014
Berlin Completion planned from April 2015 in several construction
stages
77 condominium units and 47 parking spaces
Gervin & Wilmers,
3 commercial units on the ground floor
Gervinusstrasse,
Construction started in March 2014
Berlin
Completion planned for August 2015
52 rental units and 33 underground parking spaces for institutional
Quartier im
investor
Pankepark,
Residential space: 3,810 sqm
Scharnhorststrasse
Construction started in June 2013
Berlin
Completion planned for March 2015
Sold as global exit to an institutional investor
27KEY FINANCIALS
Key Financials
INCOME STATEMENT
Comments:
Consolidated income statement (EURm) FY 2013/14 Q1 2014/15
Rental revenues 116.5 36.2
36.2 Thereof rental income for one
month only from DGAG portfolio
Results of Asset Management 75.9 26.1
of EUR 4.3m and Apollo portfolio
Results of Property Sales 34.0 8.4 of EUR 0.4m
Results of Property Development 4.9 6.8 Thereof EUR 42.7m from
Other operating income 4.1 2.1 valuation of investment properties
based on CBRE appraisal report
Expenses not directly attributable -21.7 -6.7
Result of operations 97.3 36.7 Thereof net financing costs of
EUR 28.6m as well as net
Other revaluation results 43.4 14.3 financing revenues and other
EBIT 140.7 51.0 financial results of EUR 19.4m
Financial result -9.2 -42.8
-42.8 Thereof revaluation of derivatives
EBT 131.5 8.2 of EUR 9.4m and revaluation of
financial liabilities EUR 23.8m
Income tax expenses -0.7
-0,7 -4.1 mainly driven by lowering of
Deferred tax expenses -19.9 2.1 underlying interest rate
Net profit 111.8 6.2 Thereof income tax of EUR
13.8m and one-offs from spin-off
of EUR 13.1m
29Key Financials
BALANCE SHEET
Comments:
Consolidated Balance Sheet (EURm) 30 Apr 14 31 Jul 14
Investment properties 2,631.6
2,631.6 3,616.5
3,616.5 Represents fair value of portfolios
(excl. DGAG and Apollo)
Properties under construction 10.9 11.8 excluding non-current assets held
Other assets 29.1 37.2 for sale, incl. land reserves of
EUR 121m
Non-current assets 2,671.6 3,665.5
Non-current assets held for sale 15.0 15.0
Fair value incl. DGAG and Apollo
(EUR 981m)
Inventories 155.1 138.8
Includes receivable from
Other current assets 513.6
513.6 244.4
244.4 convertible bond of EUR 260m
Current assets 683.7 398.2 and cash & cash equivalents of
EUR 133m
Total assets 3,355.3 4,063.7
Thereof cash & cash equivalents
of EUR 130m
Equity 1,552.1 1.558.2
Including bank loans of approx.
Liabilities from convertible bond 247.9 250.8 EUR 1,091m, subsidised loans of
approx. EUR 638m
Financial liabilities 1.136.0 1,728.6
1.728.6
Deferred tax liabilities 124.0 154.4
Other non-current liabilities 54.4 122.9
Other current liabilities 240.9 248.8
Total equity and liabilities 3.355,3 4.063,7
30Key Financials
FUNDS FROM OPERATION
FFO / Funds from Operations (EUR m) FY 2013/14 Q1 2014/15 Comments:
Net profit 111.8
118.8 6,2
6.2
Net profit from consolidated
Results of Property Sales -34.0 -8.4 income statement
Other financial results -13.7
-13.7 33.2
33.2 Valuation of derivatives and
Amortised cost of adjusted loans 0.4 -1.2 financial liabilities as well as
write-off of financial receivables
Fair value adjustments of investment properties -42.7 -10.7
Exceeding run-rate for FY
Fair value adjustments of properties under construction 0.6 0.0 2014/15 Recurring FFO guidance
Impairment losses 1.3 -3.0 of approx. EUR 75m
Deferred taxes 19.0 -2.1 Cash inflow from two property
sale transactions
Other -1.9 0.0
FFO 40.7 14.0
Unit Sales result 28.5 7.9
Recurring FFO 69.2 21.9
21.9
Block Sales result 12.6 0.5
0.5
Total FFO 81.8 22.3
CAPEX -6.3 -1.7
AFFO 75.5 20.6
31Key Financials
CONSERVATIVE CAPITAL AND FINANCING
STRUCTURE
Key Facts and Outlook Structure of amount outstanding
by type of financing
Target Net LTV range: 50-55% (basis IFRS)
Refinancing convertible bond and hedging mortgage loan Convertible bond
DGAG 12%
Average maturity: ~15 years; expected average maturity ~17 Bank loans
– 19 years 54%
Average interest rate: ~2.26% Total amount:
EUR 2,134m
Exp. average interest rate: 2.5% - 2.6% Subsidised loans
34%
Diverse lending group with more than 50 banks
Debt Maturity Profile after DGAG acquisition
Basis p.a.: Outstanding liabilities in EURm
1200
1000
800 319
600
400
662
200 27 31 260 4 42 26 85
3 15
72 69 69 69 52 66 66 64 63 59
0
Jul 15 Jul 16 Jul 17 Jul 18 Jul 19 Jul 20 Jul 21 Jul 22 Jul 23 Jul 24 from Aug 24
Regular repayments Final repayment Convertible bond
Note: Based on notional debt, LTV on IFRS debt and portfolio data incl. DGAG and Apollo portfolio as of 30 April 2014
32CAPITAL MARKET POSITIONING
Capital Market Positioning
CAPITAL MARKET POSITIONING
Comments on BUWOG capital market performance BUWOG share price performance 23 Oct 2014
0.69€ /share dividend payment
16,0
Current share price of EUR 15.15 (as of 21 November 2014) 15,5
represents 16.5% (ex dividend) increase to first trading price 15,0
on 28 April 2014
Share price (€)
14,5
14,0
Current share price represents 13,5
10.6% discount to analysts´ average target price 13,0
12,5
14.2% discount to last reported EPRA NAV/share 12,0
Daily average trading volume since listing date of approx. 11,5
11,0
220,200 shares, i.e. EUR 3.2m respectively 28.04.14 28.05.14 28.06.14 28.07.14 28.08.14 28.09.14 28.10.14
BUWOG EPRA Developed Europe ATX MDAX
Source: Thomson Reuters
Analyst coverage Financial calendar
Institution Date Target price Recommendation 9-10/12/2014 Barclays Conference (New York)
Berenberg 26/09/2014 EUR 17.50 Buy
22/12/2014 Publication of H1 2014/15 results
Kepler Cheuvreux 29/09/2014 EUR 17.50 Buy
21/01/2015 Unicredit / Kepler Cheuvreux
Erste Bank 16/09/2014 EUR 17.80 Buy Conference (Frankfurt)
Baader Bank 02/09/2014 EUR 14.70 Hold 29/01/2015 Vienna Stock Exchange Conference
Barclays 24/07/2014 EUR 17.00 Overweight (London)
HSBC 03/11/2014 EUR 18.70 Overweight 31/03/2015 Publication of Q3 2014/15 results
Raiffeisen Centrobank 22/10/2014 EUR 15.35 Hold
Average target price EUR 16.94
34Capital Market Positioning
SHAREHOLDER STRUCTURE
Comments on BUWOG’s shareholder structure Shareholder Structure
as of 31Jul 2014
Currently 99.6m BUWOG shares outstanding
Thereof 48.8m BUWOG shares are held by IMMOFINANZ GROUP
Two convertible bonds issued prior to BUWOG’s spin-off and one IMMOFINANZ Group
Total shares:
exchangeable bond by IMMOFINANZ AG outstanding, entitling bondholders 48.8m
99.6m
to convert into IMMOFINANZ shares and existing BUWOG shares
One convertible bond is currently considerably out of the money; the Free Float
conversion of the other two bonds would result in a free float of 81.4m 50.8m
BUWOG shares
IMMOFINANZ Group’s convertible bond and exchangeable bond (1)
Volume (EURm) 508.7 Pro Forma Shareholder Structure
following potential exercise of the conversion rights
Denomination (EUR) 4.12
7.5m
CB 2018 Conversion right IIA AV 1.1573
currently
BWO AV 0.0606
outstanding Bonds
Coupon 4.25% 30.6m
BUWOG shares
Put Option 08Mar2016
Total shares:
Term end 08Mar2018
99.6m
Volume (EURm) 375.0 IMMOFINANZ Group Free Float
Denomination (EURm) 0.1 18.2m 50.8m
23.1m
EB 2019 (2) Exchange price / bond (EUR) 16.26 currently
Coupon 1.5% outstanding
Put Option 11Sep2017 BUWOG shares
Term end 11Sep2019
(1) as of 15 October 2014
(2) According to the Terms & Conditions IMMOFINANZ AG is always entitled to deliver shares or cash
35Capital Market Positioning
SHARE OPTIONS FOR MEMBERS OF THE
EXECUTIVE BOARD „LTI“* (1)
Share option programme to tie part of variable compensation of
Executive Board members directly to share price development of
BUWOG shares
Base- Bonus options Bonus options Bonus options Total
options Tranche 1 Tranche 2 Tranche 3
Period Start Year 1 Year 2 Year 3
Key terms FY 2014/15 FY 2015/16 FY 2016/17
Share price to
EPRA-NAV per 85.0% 92.5% 100.0%
share target
Option volume CEO 75,000 100,000 130,000 175,000 480,000
% - age 16% 21% 27% 36% 100%
Option volume CFO 50,000 50,000 60,000 80,000 240,000
% - age 21% 21% 25% 33% 100%
* For further details please consult with the report of the supervisory board concerning agenda item 6 of the 2013/14 AGM.
36Capital Market Positioning
SHARE OPTIONS FOR MEMBERS OF THE
EXECUTIVE BOARD „LTI“* (2)
Allocation until 30 Apr 2017
Time frame
Exercise period 01 May 2018 until 30 April 2019
In the course of the spin-off plans for a long-term incentive-
programme for the Executive Board were announced and that
parameters would be determined by the Supervisory Board post the
spin-off
Strike price: EUR 13.0 per share (= first price upon initial listing on
Background „LTI“ 28 Apr 2014)
Criteria of the Austrian Corporate Governance Codex (ÖCGC) are
met
Mandatory self-investment of 50% of 1-years annual fix-gross salary
Proposed by Supervisory Board and approved by AGM
* For further details please consult with the report of the supervisory board concerning agenda item 6 of the 2013/14 AGM.
37OUTLOOK
Outlook
STRATEGIC AGENDA
Targeted Mid-term
Strategy Strategy
Contribution to Income
Further increase of rent levels Increase rent levels and engage in
cost optimisation through
Optimisation and streamlining management of maintenance/capex
Asset
of portfolio
Management Further grow the portfolio through
approx. 70%
Geographic shift through acquisitions in selected regional
capital recycling clusters
Unit Focus on highly profitable
Sales Unit Sales approx. 15%
Property
Sales Block sales in suburban areas Opportunistic Block sales for
Block on an opportunistic basis or for portfolio optimisation
Sales portfolio optimisation,
i.e. portfolio concentration
approx. 15%
Property Approx. 80% built for Further build up development
Development subsequent disposal, remainder activities in Berlin
for own portfolio
Unique business model providing cash flow resilience even in off-cycles, differentiating BUWOG from its peers
39Outlook
OUTLOOK FOR FY2014/15
9 – 10 December 2014 Barclays Conference (New York)
22 December 2014 H1 2014/15 results
21 January 2015 Unicredit / Kepler Cheuvreux
Financial Calendar
Conference (Frankfurt)
29 January 2015 Vienna Stock Exchange Conference
(London)
Expected Recurring FFO of at least EUR 75m for FY 2014/15
Guidance
for FY 2014/15 Continue stable dividend distribution policy
Complete integration of German acquisitions
Strategy agenda Further expand and optimise the portfolio through selected
for FY 2014/15 acquisitions and targeted disposal activities
Refinance existing 2019 convertible bond
40APPENDIX
Appendix
STATISTICS OF STANDING INVESTMENT
PORTFOLIO AS OF 30 APR 2014
Percentage of Total floor area Annualised Monthly in-place rent Fair value Percentage of total Fair value per sqm Net Rental Yield Vacancy rate
Number of units total units (in sqm) in-place rent (in EUR m) per sqm (EUR) (in EUR m) (1) Fair Value (in EUR) (in %) (2) (in %)
Federal capitals 12,065 22.90% 949,691 58 5.27 1,309 37.76% 1,378 4.4% 3.2%
Vienna 7,060 13.40% 617,569 36 5.05 1,002 28.90% 1,623 3.6% 3.7%
Berlin 5,005 9.50% 332,122 22 5.67 307 8.85% 924 7.2% 2.2%
State capitals and major cities(3) 19,815 37.60% 1,287,660 69 4.57 1,053 30.37% 818 6.5% 2.8%
thereof Austria 6,890 13.10% 499,091 20 4.33 438 12.63% 878 - -
thereof Germany 12,925 24.50% 788,569 49 5.20 615 17.74% 780 - -
Lübeck 6,275 11.90% 363,921 23 5.36 292 8.42% 801 7.9% 1.9%
Kiel 3,260 6.18% 195,301 12 5.54 174 5.02% 892 7.2% 3.0%
Villach 2,812 5.33% 201,297 8 3.39 120 3.46% 597 6.6% 3.2%
Kassel 1,511 2.87% 107,316 5 4.07 62 1.79% 574 8.2% 3.2%
Graz 1,279 2.43% 96,363 4 3.80 101 2.91% 1,044 4.2% 3.0%
Braunschweig 1,171 2.22% 70,965 4 5.19 52 1.50% 727 8.5% 1.1%
Innsbruck 786 1.49% 58,072 2 3.52 70 2.02% 1,200 3.5% 1.8%
Salzburg 717 1.36% 47,558 2 3.88 65 1.87% 1,371 3.4% 1.2%
Klagenfurt 710 1.35% 53,001 2 3.49 34 0.98% 632 6.4% 4.0%
Lüneburg 708 1.34% 51,067 3 5.19 37 1.07% 727 8.0% 7.0%
Linz 586 1.11% 42,800 2 3.74 48 1.38% 1,122 3.8% 4.1%
Suburban areas(4) 8,386 15.91% 592,165 31 4.50 526 15.17% 889 5.8% 4.4%
thereof Austria 4,485 8.51% 344,684 16 3.94 319 9.20% 925 - -
thereof Germany 3,901 7.40% 247,481 15 5.22 207 5.97% 836 - -
Hamburg 2,868 5.44% 176,540 11 5.25 166 4.79% 940 6.6% 0.9%
Klagenfurt 1,601 3.04% 116,419 5 3.69 92 2.65% 786 5.2% 8.1%
Villach 1,136 2.15% 88,604 4 3.67 63 1.82% 708 5.6% 9.4%
Vienna 543 1.03% 44,942 2 4.10 56 1.62% 1,243 3.8% 4.3%
Berlin 529 1.00% 33,987 2 4.82 16 0.46% 464 11.5% 7.4%
Graz 482 0.91% 36,176 2 4.16 32 0.92% 895 5.5% 1.4%
Salzburg 468 0.89% 36,669 2 5.11 51 1.47% 1,390 4.4% 1.2%
Kiel 366 0.69% 28,777 2 5.60 22 0.63% 749 8.7% 3.1%
Innsbruck 255 0.48% 21,874 1 3.72 25 0.72% 1,125 4.0% 0.3%
Braunschweig 138 0.26% 8,177 1 4.99 5 0.14% 611 9.3% 5.5%
Rural areas 12,452 23.62% 830,518 38 4.05 579 16.70% 697 6.5% 7.0%
thereof Austria 7,815 14.82% 550,796 20 3.44 369 10.64% 671 5.7% 7.8%
thereof Germany 4,637 8.80% 279,723 17 5.22 209 6.03% 748 7.9% 5.3%
Total 52,718 100.00% 3,660,034 195 4.63 3,467 100.00% 947 5.6% 4.1%
Total Austria 26,250 49.79% 2,012,137 93 4.06 2,127 61.35% 1,057 4.4% 5.0%
Total Germany 26,468 50.21% 1,647,897 102 5.31 1,341 38.68% 814 7.6% 2.9%
(1) Based on fair value of standing investments according to CBRE valuation reports as of 30 April 2014 and on the purchase price for the DGAG and Apollo portfolio acquisitions
(2) Annualised total in-place rent (based on monthly in-place rent excluding utilities as of the reporting date) in relation to fair value
(3) More than 50,000 inhabitants and a significant share of the portfolio > approx. 600 units
(4) The immediate catchment area up to about 15 km around federal capitals, state capitals and major cities, as well as Hamburg
42Appendix
EXCURSUS: HIGH MARGIN TENANT-
FINANCED DEVELOPMENT
Implied equity commitment key to understand the full project return potential:
Project Altmannsdorfer Strasse in Vienna
In EUR Planning/Construction Renting Period Divestment Period
thousand Year (5)-(1) Year 0-6 Year 7-19
Cash-Out EUR (11,728) EUR (2,763) EUR (9,722)
Amortisation and Equity contribution only
repayment of required for purchase of land
Purchase Construction Interest costs EUR (1,851) subsidised and and repaid by tenant
Cost of Land Cost Amortisation of subsidised Interest Cost bank loans
and bank loans EUR (912) EUR (7,853)
contributions upon completion
EUR (1,739) EUR (9,989) EUR (1,869)
Low rental income during
renting period, but tenant
contributions as upfront
payment
Subsidised and bank loans Rental Income Rental Income Income from Sales During divestment period single
EUR 8,675 EUR 2,969 EUR 5,256 EUR 14,990 unit sales, then sale of
Tenant Contributions
EUR 2,963 remainder in block sale
Tenant contributions as “second
Cash-In EUR 11,728 EUR 2,969 EUR 20,246 rent” paid upfront, which are
amortized over 100 years
Net CF 0 EUR 206 EUR 10,524
Despite long project period,
Equity equity is only tied up for a very
0 EUR 206 EUR 10,730
Generation limited time
Due to the minimal use of equity required, this sample property development yields an IRR of 11.6% over the period of 25
years
43Appendix
EUROPEAN HOUSING OVERVIEW
Germany:
Housing situations as per 2012 47 % of population live in rental apartments
Switzerland
Germany is the largest rental market in Western
and Central Europe
Netherlands
Denmark
38.6 % of inhabitants live in rental apartments
which are let at market prices
Germany
8.1 % live in rental apartments with subsidised
Great Britain
rents (subsidised apartments)
Belgium
Thus, Germany with 80.7m inhabitants
Austria
represents the by-far largest market for rental
France apartments in Europe.
Italy
Poland
Austria:
43 % of population live in rental apartments
EU-28
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Proportionally Austria is the third largest market
for rental apartments in Western and Central
rent – market price rent - subsidised ownership
Europe after Switzerland and Germany
Source: bulwiengesa, according to Eurostat
16.4% live in rental apartments with subsidised
rents (subsidised apartments)
26.1% of inhabitants live in apartments which
are let at market price
44Appendix
AUSTRIA
Market Characteristics Development of rents
Population 2013 8.45m Forecast increase of households Regionally very different development of
Household growth until 2025 by 7.7% also based on market rents
7.7 % increasing number of population
2013 - 2025 Comprehensive reglementation of rents
Low share of residential living cost through rent governing legislation
GDP per inhabitant 2013 EUR 38,050
of 24 % of household income
Overhang of demand leads to higher
GDP change 2013 1.1 % allows for potential to increase
market rents in metropolitan areas
Increasing population combined
Jobless rate 09/2014* 4.8 % Strong trend towards owner occupied
with shrinking household sizes and
apartments and houses
relatively low or decreasing new
Source: Austrian Federal Office for Statistics, *Eurostat
construction lead to significant Highly attractive environment for single
demand for residential apartments unit purchases
Residential living cost share Construction volume Development of households
Austrian residential construction p.a. in k units
1.750.000
Residential living costs Residential living costs
23% 24% 60 1.550.000
1-Personenhaushalte
One-person household
1.350.000
46 2-Personenhaushalte
Two-person household
40 40 1.150.000
28 950.000 Three –person household
3-Personenhaushalte
1981-1991
1991-2001
2001-2011
2011-2021
2021-2031
750.000 Four –person household
4-Personenhaushalte
550.000
5-Personenhaushalte
Five-person household
350.000 und mehr
77% 76%
Remaining living costs 150.000
Remaining living costs 2013 2014 2015 2016 2017 2018 2019 2020 2025
Vienna Austria
Source: Statistik Austria Source: bulwiengesa according to Statistik Austria
45Appendix
GERMANY
Market Characteristics Development of rents
Largest number of apartments in Generally inhomogeneous market;
Population 2013 80.7m Europe in one of the largest high degree of variation, most of all
residential construction markets strong disparity between Western
Household growth
1.7 % and Eastern Germany
2013 - 2025 Trend towards growing number of
households continues according to Historically constant level of rents
GDP per inhabitant 2013 EUR 34,785
forecast until 2015 despite with clear potential for increases
stagnating or decreasing number of predominantly in Berlin
GDP change 2013 0.1 %
population
Overhang of demand leads to
Jobless rate 09/2014* 5.0 % Significant demand for apartments, increasing market rents in
mainly dependent on demographics metropolitan areas and university
Source: German Federal Office for Statistics, *Eurostat
towns as well as areas in between
Comparatively low residential
construction volumes
Number of apartments in Europe Development of households
in thousands in millions
40.000 41.2
Germany has the largest
30.000 housing stock in Europe 41.0
20.000 40.8
10.000
40.6
0
Poland
Denmark
Norway
Germany
Italy
Spain
UK
Finland
Ireland
France
Belgium
Switzerland
Netherlands
Portugal
Sweden
Hungary
Austria
Slovakia
Czech Republic
40.4
2013 2015 2017 2019 2021 2023 2025
Source: German Federal Office for Statistics, * bulwiengesa
Source: German Federal Office for Statistics
46Appendix
DISTRIBUTION OF AVAILABLE INCOME
WITHIN GERMANY
Significantly higher income in Western Germany
Highest purchasing power in Germany in the
metropolitan areas of Munich, Stuttgart,
Frankfurt and Hamburg
Equally high purchasing power towards the
South of the Rhine-/Ruhr area in Western
Germany, i.e. Duesseldorf, Cologne and Bonn
Relatively low purchasing power in Berlin and
its surrounding areas
Very low purchasing power in East German
municipalities
Significant discrepancies between Eastern and
Western Germany
Equally high discrepancies between
metropolitan areas and rural areas
BUWOG target region in NW Germany benefits
from economic strength of Hamburg region and
offers highly attractive combination of yields and
low risk due to underlying purchasing power of
target region BUWOG Group
population
Source: RIWIS, bulwiengesa
47Appendix
THE AUSTRIAN RENTAL SYSTEM
Austria’s landlord-tenant law is characterized by a complex set of provisions compiled in the Austrian Tenancy Act (MRG) and
provides for a strict legal regime. All buildings erected prior to World War II are subject to MRG
MRG generally regulates the lease of apartments, parts According ABGB provisions and under partial MRG
Austrian of apartments, business premises of all types, it can be scope, the tenant must tolerate reasonable structural
fully, partially or not applicable at all Structural alterations by the landlord
Tenancy Act alterations
In cases not governed by the MRG, the Austrian Civil Under full MRG scope, the landlord must, under certain
Code (AGBG) usually applies conditions, allow alterations to the object
Fixed-term lease agreements may not be terminated
Restrictions on selling residential real estate are not
Term and prior to the end of the lease term Restrictions on particularly provided for in MRG
termination Need of a good cause to terminate the lease agreement selling residential Nonetheless, there are provisions that in their effects
(non payment, lack of proper maintenance, landlord’s real estate resemble selling restrictions
urgent own need, etc.)
Usually, rent may be freely negotiated and is usually Energy
paid in advance on a monthly basis The Energy Performance Certificate Submission Act
Rent Performance forces the seller or lessor to show an energy
For lease agreements falling under the full scope of the Certificate performance certificate to his contracting partner
MRG, the rent may be capped
Within the full scope of the MRG, the landlord may Condominium, as a special form of joint ownership, is
Service charges, charge only specific service charges and incidental governed by the Condominium Act (WEG)
maintenance, costs to the tenant Condominium Act
WEG entitles the owner to exclusive use and disposal
insurance The landlord has to perform works necessary for of an apartment
maintenance of the common areas and leased object
The Austrian Act on Non-profit Housing (WGG) governs
Subletting, Under partial MRG scope, the subletting without the Act on Non-Profit buildings constructed by a non-profit housing company
assignment, landlord’s approval is not permitted, it is possible in Housing Under the WGG, rent must as a rule be set in
change of control certain cases under full MRG scope
accordance with the cost covering principle
48Appendix
BUWOG RENT MODELS IN AUSTRIA
Share of Monthly in-
Austrian BUWOG‘s place rent at
Description
Rent Models Austrian period end
Portfolio (1) (€/m²)
Composition of monthly net rent
Refinancing of production cost (land, construction and other costs)
Contribution for maintenance
Cost- (EVB I = 0,43 EUR/m² and EVB II = Ø0.90 EUR/m² since 1 April
2014)
Covering Default component (2% of production costs) WGG is
Rents €3.84 Changes in interest and amortisation (usually 21-25 years) increase applicable when
70% rent
§14 (1) WGG Risk of change in interest charged on to tenant
the property was
Restricted
Total of 35% of rent in form of EVB subject to CPI adjustment with a built by a non-
5% threshold profit cooperation
Regime switch at fluctuation = upside potential If the property
if cost covering rent < guideline-based rent has been subject
Composition of monthly net rent to WGG,
19%
Rent rate = €3.44 per sqm and month restrictions apply
Guideline- Surcharge for return on equity for land costs and default component indefinitely
Based Rents €3.56 Rent rate subject to CPI adjustment BUWOG exited
Change between restricted rent models possible as a consequence of the non-profit
§13 (6) WGG
tenant fluctuation status in 2001
Market-Based 4%
Composition of monthly net rent
Rents Rent based on local, market-based rents
€6.02 Net rent subject to CPI adjustment
§13 (4) and
Upside potential from fluctuation
Unrestricted
(5) WGG
The development
Austrian
6% Composition of monthly net rent of subsidized
Rental Law Rent based on local, market-based rents once subsidies are fully rental apartments
§16 in amortized into the portfolio
€4.87 Maximum rent (c. €5.31 per sqm and month) as long as subsidies
connection is not subject to
have not been repaid
with §1 (4) Net rent subject to CPI adjustment WGG
No.1 MRG
(1) Based on total monthly in-place rent at period end (31 July 2014). Unregulated rent represents 1% of BUWOG’s portfolio in Austria
49Appendix
THE GERMAN RENTAL SYSTEM
German tenancy law in large part favors tenants through social safeguards and is mostly binding irrespective of the parties’
agreements
Reason/claim Requirement of
Generally, a landlord may terminate an unlimited An energy certificate must be made available to
protection against energy
residential lease only if the landlord has a legitimate potential buyers or tenants upon request
termination of certificates
interest in ending the lease
residential leases
Under the bill of the Tenancy Law Amendment Act,
The ability of landlords to increase rent unilaterally in tenants are required to tolerate maintenance and
existing tenancy agreements is limited modernisation measures
Limits on rent As of this time, the capping limit is reduced from 20% to Maintenance and Landlords are entitled to allocate costs for
increases 15% by the government of German federal state in modernisation modernisation measures to tenants by way of an
additional regions beside Berlin and Munich to supply measures increase of the annual rent in the amount of 11% of the
of affordable housing is particularly threatened. (“Erhaltungs- cost incurred (less the costs that would have been
maßnahmen”, incurred for maintenance measures anyway), with the
The agreement includes plans to limit the rental amount “Modernisierungs exception of certain types of measures or that
for new leases in regions where the supply of affordable -maßnahmen” ) measures that would constitute an unreasonable
Rental Brake housing is particularly threatened. In these regions, the hardship for the tenant
(“Mietpreis- relevant German federal state should be entitled to limit A rent increase after modernisation measures is
bremse”) such amount to a maximum of 10% above the locally currently being discussed by the government
prevailing comparative levels of rent
Schleswig-Holstein, where a large part of the DGAG
Portfolio is located, the rent originally applicable
Statutory If rented residential units have been converted into Rent has to principally be based on the costs incurred
restrictions on condominiums or if such conversion is planned, the Schleswig- for the construction of the properties. The applicable
selling residential tenant has a statutory pre-emptive right to purchase the Holstein provisions do not allow any increase earlier than July 1,
real estate unit on the same terms as a third-party buyer 2014. After that, the increase is limited to an aggregate
increase of nine per cent of the originally agreed rent
within three years.
The landlord is obliged to keep up and maintain the
Landlord’s asset, including the exterior and interior fittings and The purchaser of real estate is required to pay real
maintenance substance Property estate transfer tax (“Grunderwerbsteuer”); the tax
obligations Under certain conditions this obligation can be purchases currently varies from state to state between 3.5% and
transferred to the tenant 6.5%, plus c. 1.5% notary fees
50Appendix
CBRE VALUATION ASSUMPTIONS
Austria Germany
Discounted Cash Flow method over an 80-year period The DCF method has been used
Discount rate reflects market situation, yield expectations and Discount rate reflects market situation, yield expectations and
uncertainty involved in the forecasting of future cash flows uncertainty involved in the forecasting of future cash flows
Elements of the DCF model are: The assumptions adopted in the valuation model reflect the
Regulated residential rent (“Kostendeckende Miete”, KDM), average estimates that would be made at the relevant date of
current KDM payable is applied, increased through valuation by investors
indexation to inflation and increase in the interest rate and/or
amortisation (“Annuitätensprung”)
Regulated residential rent (“Burgenländisches Richtwert
minus 30%”) is the lowest guideline rent of all the Austrian Land Approach
federal states
Reasonable rent vs. open-market rent, both indexed at the All assets have been assigned to one of the following categories
inflation rate
Future development: land capable of development,
Other rent and sale prices includes parameter such as unserviced land zoned for development and land with hope
caretaker, garage, parking space value for development
Net rental income: the accommodation that is considered as Other: woodland, agricultural land and gardens
being let at the end of each period is calculated by deducting
The land assets were balued using following methods
vacancy and actual privatised space from the
accommodation at the end of the period Comparison model (land capable of development, woodland,
agricultural land and gardens), using the official
Sale proceeds from individual privatization: privatization
Bodenrichtwert
space multiplied by sqm price, to calculate marketing costs
Deductive valuation approach for potential building land by
Sales results: net rental income, plus sale proceeds less cost
Walter Seele (land with hope value for development and
of sales
unserviced land zoned for development)
Gross capital value: sum of net present values
Transaction costs are deducted, the result being the net
capital value
Source: CBRE valuation.
51Appendix
BUWOG SENIOR MANAGEMENT TEAM
Mag. Daniel Riedl, 45 Dr. Ronald Roos, 46
CEO of BUWOG since CFO of BUWOG since
November 2013 February 2014
(Last 10 years BUWOG Managing
Director or Chairman of the Supervisory
Board)
17 years real estate experience 9 years CFO experience
6 years COO experience 8 years real estate experience
Previous positions Previous positions
BUWOG Managing Director or Chairman of the Chief Restructuring Officer, Norddeutsche Reederei
Supervisory Board CFO, aurelis
COO and Member of the Executive Board, IMMOFINANZ, CFO, Swiss Life Germany
responsible for the residential property business in Consulting positions, Ernst & Young
Eastern and Western Europe, as well as human Board positions, WCM Group
resources, marketing and IT corporate services Studied Business Administration at University of Bayreuth
Studied Business Administration at Vienna University of Former professional handball player, won German
Economics championship and German cup
FRICS
52BUWOG AG Holger Lueth
Head of Investor Relations and Corporate Finance
T: +43 1 878 28-1130 T: +43 1 878 28-1203
E: investor@buwog.com E: holger.lueth@buwog.com
W: www.buwog.com
Stock Symbols
Frankfurt Stock Exchange: BWO GR
Vienna Stock Exchange: BWO AV
Warsaw Stock Exchange: BWO PW
ISIN: AT00BUWOG001
53DISCLAIMER
The formation of BUWOG Group required BUWOG AG, as the parent company, to
prepare consolidated financial statements for the first time as of 30 April 2014. These
consolidated financial statements meet the requirements of IFRS. However, BUWOG AG’s
historical IFRS financial data have limited explanatory power because the company has
only existed in its current structure since the end of April 2014.
In the interest of transparency towards its shareholders and the capital markets, BUWOG
Group has decided to prepare additional pro-forma financial information. This pro-forma
information was released in the context of publishing the 2013/14 annual report.
As a consequence of the above, no Q1 2013/14 financial statements are available for
comparative purposes in this document.
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