BUWOG GROUP COMPANY PRESENTATION MARCH 2016

Transcription

1 BUWOG GROUP COMPANY PRESENTATION MARCH 2016

2 OVERVIEW

3 Overview BUSINESS MODEL AUSTRIA & GERMANY ASSET MANAGEMENT RESIDENTIAL ONLY PROPERTY DEVELOPMENT PROPERTY SALES CASH STRONG BALANCE SHEET (1) 47.9% LTV 2.12% Ø interest rate 16.1 yr Ø maturity NAV/share REINVESTMENT DIVIDEND Trading in: VIENNA FRANKFURT WARSAW (1) Based on outstanding financial liabilities as of 31 Oct

4 Overview PROPERTY PORTFOLIO Geographic overview Statistics of standing investment portfolio as of 31 Oct 2015 No. of units Total floor area in sqm Annualised net in-place rent (3) in EURmn Fair value (4) in EURmn Fair value in EUR/sqm Net rental yield (5) Vacancy rate (6) Federal capitals 11, , ,406 1, % 3.5% Vienna 6, , ,020 1, % 4.4% Berlin 4, , , % 1.8% State capitals and 19,467 1,260, , % 2.7% major cities (1) Suburban areas (2) 8, , % 4.7% Rural areas 11, , % 7.1% Total 51,049 3,533, ,625 1, % 4.2% Total Austria Total Germany 24,497 1,880, ,081 1, % 5.5% 26,552 1,653, , % 2.7% Federal capitals State capitals and major cities Suburban areas Rural areas Asset Management Property Sales Property Development (1) More than 50,000 inhabitants and a significant share of the portfolio (2) The immediate catchment area up to about 15 km around federal capitals, state capitals and major cities, as well as Hamburg (3) Based on monthly in-place rent (excluding utilities) as of balance sheet date (4) Based on fair value of standing investment as of balance sheet date (5) Annualised total net in-place rent (based on monthly in-place rent excluding utilities as of the reporting date) in relation to fair value (6) Based on sqm 4

5 ASSET MANAGEMENT

6 Asset Management VALUE CREATION THROUGH ASSET MANAGEMENT AND PORTFOLIO OPTIMISATION BUWOG focus SECTOR FOCUS: RESIDENTIAL ONLY REGIONAL FOCUS: AUSTRIA/ GERMANY FUNCTIONAL FOCUS: FULL SERVICE PROVIDER Asset Management Continuously increasing rental income through active asset management and by increasing occupancy rates Further improving cost efficiency in terms of property management and maintenance Expanding the German property portfolio to increase returns, with a target of around 2,000 to 4,000 units per year Continuously optimising the investment portfolio by making targeted, cycle-optimised Block Sales Property development into the Viennese standing investment portfolio Targeted mid-term contribution to income: approx. 70% BUWOG strategy LOW RISK STABLE RENTS, HIGH OCCUPANCY HIGH UPSIDE PORTFOLIO OPTIMISATION 6

7 Asset Management STRUCTURE OF STANDING INVESTMENT PORTFOLIO BUWOG Group portfolio split as of 31 Oct 2015 Austria Germany Total Number of units 24,497 26,552 51,049 Total floor area (sqm) 1,880,599 1,653,393 3,533,992 Fair value (in EURmn) 2,081 1,545 3,625 Annualised net in-place rent (in EURmn) Net rental yield 4.3% 7.0% 5.4% Vacancy rate 5.5% 2.7% 4.2% Highlights Asset Management Property Portfolio covers 51,049 units with a total floor area of approx. 3.5mn sqm Annualised net in-place rent of approx. EUR 197mn as of 31 Oct 2015 with a net rental yield of 5.4% for the entire portfolio Increase of 2.2% in net in-place rent on a like-for-like basis through active asset management (year-on-year comparison) Fair value of EUR 3.6bn Net Rental Yield 7,4% 7,3% 7,0% 5,6% 5,4% 4,9% 4,4% 4,4% 4,3% Vacancy rate 5,0% 4,8% 3,6% 5,5% 5,5% 4,2% 4,2% 2,7% 2,7% Fair value in EURmn 2, ,558 3, April April October April April October April April October 2015 Austria Germany Total Austria Germany Total Austria Germany 7

8 Asset Management SAMPLE OF STANDING INVESTMENTS IN AUSTRIA Kierlinger Hauptstr. 37, 39, 41, Klosterneuburg, Lower Austria 19 units 1,873 sqm lettable area Construction year: 2013 In-place rent per sqm per month: EUR 8.05 Rental system: MRG (1) Untere Augartenstr. 5, 1020 Vienna 15 units 1,055 sqm lettable area Construction year: 1949 (renovated in 1996 ) In-place rent per sqm per month: EUR 2.44 WGG -> Cost-Covering Rent (1) Salesianergasse 1b, 1030 Vienna 39 units 4,107 sqm lettable area Construction year: 1928 (renovated in 2010) In-place rent per sqm per month: EUR 2.70 WGG -> Cost-Covering Rent (1) (1) see Appendix BUWOG RENT MODELS IN AUSTRIA 8

9 Asset Management SAMPLE OF STANDING INVESTMENTS IN GERMANY Tempelhofer Damm 78-88A, Berlin Tempelhof 111 units 10,454 sqm lettable area Construction year: 1927 In-place rent per sqm per month: EUR 6.22 Unrestricted Rent Breslauer Str , Kassel 106 units sqm lettable area Construction year: 1960 In-place rent per sqm per month: EUR 4.27 Unrestricted Rent Adolf-Ehrtmann- Str. 6-12, Lübeck, Schleswig-Holstein 78 units 5,233 sqm lettable area Construction year: 1997 In-place rent per sqm per month: EUR 5.75 Restricted Rent (subsidised) 9

10 PROPERTY SALES

11 Property Sales HIGH MARGIN FROM UNIT SALES AND CONTRIBUTION TO RECURRING FFO BUWOG focus SECTOR FOCUS: RESIDENTIAL ONLY REGIONAL FOCUS: AUSTRIA/ GERMANY FUNCTIONAL FOCUS: FULL SERVICE PROVIDER Property Sales High mid & long-term sales potential for approx. 13,400 Unit Sales & approx. 3,300 Block Sales Long-term income from Unit Sales, primarily to owneroccupiers as a result of tenant fluctuation. -> High contribution to Recurring FFO Planned Unit Sales of approx. 500 to 600 units per year Strong track record with high margins (approx. >50%) in Unit Sales in Austria Margins in Block Sales have been significantly above fair value in recent years Targeted mid-term contribution to income: approx. 15% BUWOG strategy LOW RISK SUSTAINABLE UNIT SALES HIGH UPSIDE HIGH MARGINS THROUGH SALES OF SUBSIDISED UNITS FROM CHURN 11

12 Clear Differentiation Property 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 Key facts Sales from churn to owner-occupiers in selected regions Highly profitable with strong sustainable contribution to Recurring FFO Optimised mix of internal and external sales channels Track record with high profitability; margins of approx. 55% (1) Sale of properties or portfolios Block sales in rural areas to optimise the portfolio Optimised mix between internal and external sales channels Margins on Block Sales significantly above fair value in recent years Units Fair Value (2) in EURmn Fair Value (3) in EUR per sqm Units Fair Value (2) in EURmn Fair Value (3) in EUR per sqm Sales cluster Contribution to Recurring FFO Vienna Rest of Austria Total 6, ,727 7, ,124 13,416 1,496 1,417 Vienna Rest of Austria Germany Total ,606 2, , Recurring revenues through Unit Sales (1) On fair value (2) As per 31 October 2015; (3) As per 31 October 2015; annualised total net in-place rent (based on monthly net in-place rent excluding utilities as of the reporting date) in relation to fair value Block Sales if attractive opportunities with adequate margins arise 12

13 Property Sales PROPERTY SALES Highlights Property Sales in H1 2015/16 Successful Unit Sales business inh1 2015/16 with 315 units sold and a FV margin of approx. 62% Further portfolio optimization through Block Sales (275 units with a FV margin of approx. 11%) Property sales cluster contains approx. 16,700 units with a fair value of EUR 1.7bn Strategic portfolio cluster split by fair value as of 31 Oct 2015 Block Sales 6% Unit Sales (as part of core portfolio 41%) Total fair value: EUR 3,625mn Core portfolio 94% Units sold 2,292 Realised average price in EUR per sqm 1, Margin on fair value in % 54% 59% 62% 1, % 26% 11% FY 2013/14 FY 2014/15 H1 2015/16 FY 2013/14 FY 2014/15 H1 2015/16 FY 2013/14 FY 2014/15 H1 2015/16 Units Sales Block Sales Units Sales Block Sales Total Units Sales Block Sales 13

14 Property Sales SAMPLE OF UNIT SALES IN H1 2015/16 Leystraße 20a, Vienna 3 units 308 sqm floor area Avg. sale price per sqm: EUR 2,080 Avg. in-place rent per sqm per month: EUR 2.92 Remaining total floor area: 5,874 sqm Alte Poststr , P-Tunnerg , Blümelstr , Graz 13 units 1,053 sqm floor area Avg. sale price per sqm: EUR 1,679 Avg. in-place rent per sqm per month: EUR 5.50 Remaining total floor area: 16,381 sqm Völkendorfer Straße 87-91, Sittenb.-Str , Villach 7 units 660 sqm floor area Avg. sale price per sqm: EUR 1,555 Avg. in-place rent per sqm per month: EUR 6.3 Remaining total floor area: 2,562 sqm 14

15 Property Sales SAMPLE OF BLOCK SALES IN H1 2015/16 Antonsg. 1a, Bahnhofstr. 21, Baden/Wieselburg, Lower Austria 37 units 3,368 sqm floor area Sale in 10/2015 Sales Price: EUR 3.2mn Sales Price per sqm: EUR 949 Investor Yield at sale 3.1% Grundgasse 7, 9, St. Veit an der Glan, Carinthia 53 units 4,433 sqm floor area Sale in 10/2015 Sales Price: EUR 5.15mn Sales Price per sqm: EUR 1,096 Investor Yield at sale 5.5% Linzer Straße 112, Vienna (Retail) 1 retail unit 1,038 sqm floor area Sale in 08/2015 Sales Price: EUR 3.93mn Sales Price per sqm: EUR 3,780 Investor Yield at sale 6.4% 15

16 PROPERTY DEVELOPMENT

17 Property Development LONGLASTING TRACK RECORD FOR RESIDENTIAL DEVELOPMENTS BUWOG focus SECTOR FOCUS: RESIDENTIAL ONLY REGIONAL FOCUS: VIENNA/ BERLIN FUNCTIONAL FOCUS: FULL SERVICE PROVIDER Property Development Strategy for differentiation from peer group and creation of added value through project development Securing high profitability and minimizing risk are priorities Development pipeline in Vienna and Berlin with an investment volume of approx. EUR 1.8 billion translating into approx. 6,300 units Balanced project pipeline in various stages of implementation, with a LT target of development of 500 units each in Berlin and Vienna per annum for outright sale plus units in Vienna per annum for standing investment portfolio Strong internal sales structure in Vienna and Berlin to support sales Profitable division for generating Recurring FFO Targeted mid-term contribution to income: approx. 15% BUWOG strategy LOW RISK 65 YEARS OF DEVELOPMENT EXPERIENCE HIGH UPSIDE HIGH MARGINS ON DEVELOPMENT PROCEJTS 17

18 Property Development DEVELOPMENT PRODUCT MATRIX Subsidised rental apartments Subsidised condominiums Condominiums Investment apartments Global exit Built for Standing Investment Portfolio Regional customers Regional customers National customers Institutional investors and foundations Vienna (3,629 units) Total: 1,052 units (78,978 sqm) Total: 104 units (7,828 sqm) Total: 2,212 units (173,693 sqm) Total: 72 units (4,502 sqm) Total: 189 units (40,300 sqm) Am Otterweg 88 subsidised units Wiener Straße 44 subsidised units Pfarrwiesengasse 126 units Sky 6 Gombrichgasse 41 investment units 7 Central Lindengasse 30 units Sample projects Berlin (2,661units) Sample projects Total: 2,661 units (227,502 sqm) Westendpark 116 units Pipeline currently does not contain any planned global exits Quartier am Pankepark (2) 52 units Total 6,290 units (1) (1) As of 31 October 2015; the product development matrix comprises roughly 260 units that are allocated to land reserves (2) Sold in 5/

19 Property Development PROPERTY DEVELOPMENT Highlights Property Development in H1 2015/16 Completion of 120 units during H1 2015/16 1,140 units with an investment volume of approx. EUR 378mn are under construction Property Development in Berlin is being intensified: 52 Grad Nord, Berlin (under construction) Currently 4 projects with 485 units are under construction Signed acquisition of 2 land plots in Berlin for total of EUR 63.5mn Targeted additional approx. 1,280 units with a total investment volume of approx. EUR 440mn in H1 2015/16 compared to FY 2014/15 Skytower, Vienna (under construction) Univers Living, Vienna (completed) As of 31 October 2015 the development pipeline of BUWOG Group included approx. 6,290 units with a total investment volume of approx. EUR 1.8bn Property development activity Investment value of development projects as of 31 Oct (1) Vienna EUR 942mn Total investment volume: EUR 1.8bn Berlin EUR 878mn FY 2013/14 FY 2014/15 H1 2015/16 Completed units Units under construction (1) As of 30 June

20 Property Development PROPERTY DEVELOPMENT From the idea to the apartment 1. Project conception / analysis stage 2. Land acquisition 3. Detailed project design Location of the plot and project concept are crucial Feasibility analysis Development potential, legal status (use of land and soil pollution) Profitability calculation (achievement of targets) Assessment of marketability Property Completion of due diligence (technology, legal) Approval by Executive Board and Supervisory Board of BUWOG AG Specification of optimised transaction structure Signing of land purchase agreement Development of detailed usage concept Marketing and sales concept Financing concept Standard calculation of project result return on equity and cash flow modelling Idea Capital Location 7. Completion of transfer and guarantee 4. Preparation of construction Customer support of individual sales, transfer of title and guarantee - service provided by company s own buyer management Transfer to BUWOG investment portfolio (subsidised rent) 6. Project execution Assignment of construction works Ongoing project controlling Construction and completion of the development project Remedying of defects 5. Marketing Key success in project development Individual sale Global sale with lettings Marketing and sales management Obtain building permission Planning (preliminary draft, housing mix, building application planning, commissioning external contractors) Obtain of project financing from bank Tender for construction work Targeted duration of a project: 12 months for preparation including sales launch and 18 months for execution 20

21 Property Development REVIEW PROPERTY DEVELOPMENT Progress of Development Projects as of 31 October 2015 No of projects No of units Floor area (in sqm) Investment volume in EURmn Vienna Currently under construction , Planned construction start in FY 2015/ , In planning stage (construction start from FY 2016/17) 18 2, , Land reserves , Development projects within inventories Property projects within investment properties (pipeline projects) Total 36 3, , Berlin Currently under construction (1) , Planned construction start in FY 2015/ , In planning stage (construction start from FY 2016/17) (1) 6 1, , Land reserves Total 11 2, , Development projects within inventories Property projects within investment properties (pipeline projects) (1) The Regattastr. Project will be carried out in several phases with different dates for the respective beginning of construction. The first construction phase Seefeld I started in 08/2015. The next partial project Ankerviertel will commence in FY 2016/17. Vienna: Berlin: 1 construction project with a total of 44 units was completed within H1 2015/16 9 projects with 655 units are currently under construction The construction start of further 5 projects with approx. 583 units is planned in FY 2015/16 The total development pipeline in Vienna and its suburban area comprises 3,629 units with an investment volume of approx. EUR 942mn 76 units were completed and transferred within H1 2015/16 4 projects with 485 units are currently under construction. The construction start of 1 project with 244 units is planned in FY2015/16 The total development pipeline in Berlin comprises 2,661 units with an investment volume of approx. EUR 878mn 21

22 Property Development SAMPLE PROJECTS IN VIENNA UNDER CONSTRUCTION IN FY 2015/16 Skytower Gerhard-Bronner Strasse, 1100 Vienna 126 condominiums + 2 commercial units Total floor area: 10,574 sqm Sale price from EUR 3,400 per sqm to EUR 4,800 per sqm Construction started in December 2014 Estimated completion in April 2016 Am Otterweg, 1220 Vienna 120 units in total, of which 88 units are subsidised lets and 32 are condominiums Total floor area: 10,212 sqm Sale price from EUR 3,000 per sqm to EUR 3,600 per sqm Construction started in March 2015 Estimated completion in August 2016 Pfarrwiesengasse Pfarrwiesengasse 23, 1190 Vienna 85 condominiums (in stage 1) Total floor area: 10,127 sqm Sale price from EUR 4,800 per sqm to EUR 11,000 per sqm Construction started in August 2015 Estimated completion in April

23 Property Development SAMPLE PROJECTS IN BERLIN UNDER CONSTRUCTION IN FY 2015/16 Westendpark Tharauer Allee, Berlin 116 condominiums and 129 underground parking spaces Total floor area: 12,594 sqm Sale price from EUR 3,420 per sqm to EUR 5,060 per sqm Construction started in March 2014 Completion planned from April 2016 in several construction stages till September 2017 Uferkrone Lindenstrasse, Berlin 198 units and 170 underground parking spaces for institutional investor Total floor area: 20,034 sqm Sale price from EUR 2,260 per sqm to EUR 4,030 sqm Construction started in September 2014 Completion planned from April 2016 in several construction stages till April 2021 Seefeld I Regattastr., Berlin 114 units and 91 underground parking spaces Total floor area: 10,103 sqm Sale price from EUR 2,750 per sqm to EUR 4,680 sqm Construction started in August 2015 Completion planned from August

24 OPERATING RESULTS

25 Asset Management REVIEW ASSET MANAGEMENT Results of Asset Management in EURmn H1 2015/16 H1 2014/15 Change Rental revenues % Operating costs charged to tenants and facility management revenues % Other revenues % Revenues % Expenses directly related to investment property % Operating expenses % Results of Asset Management % 6 months DGAG and Apollo contribution in H1 2015/16 vs. 4 months only in H1 2014/15 Like-for-like rental increase 2.2% Reduction due to property sales amounting to EUR -1.9mn (590 units sold in H1 2015/16) Lower Expenses directly related to investment properties due to decreased costs in Austria (mainly resulting from lower maintenance costs as no maintenance backlog was acquired) 72,0 70,0 68,0 66,0 64,0 62,0 60,0 58,0 56,0 54,0 60,7 Results of Asset Management H1 2014/15 9,0 DGAG/Apollo acquisition 1, Rental Increase (1) Vacancy rate (1) Property Sales Expenses directly related to investment properties ,7 Results of Asset Management H1 2015/16 (1) Excluding DGAG & Apollo portfolios, reflected in separate DGAG & Apollo pillar 25

26 Asset Management STANDING INVESTMENTS Development of Standing investments 31 Oct Apr 2015 Change Number of units 51,049 51, % Total floor area (sqm) 3,533,992 3,581, % Fair value (EURmn) 3,625 3, % Annualised in-place rent (EURmn) % Net Rental Yield 5.4% 5.6% -0.2 PP Vacancy rate 4.2% 4.2% 0.0 PP Standing Investments Development from 30 Apr 2014 to 31 Oct 2015 in EURmn Number of units slightly decreased due to the Property Sales business in Austria: 590 units were sold in Unit and Block Sales with a fair value of EUR 53mn Revaluation (EUR 113.3mn) according to the CBRE valuation report as of 31 Oct Revaluation is mainly driven by yield compression and changes of market rents in the German portfolio as well as changes in sales price potentials in Unit Sales in the Austrian portfolio. The revaluation result compares to EUR 35.2mn in H1 2014/15 and proves BUWOG s quality portfolio. In addition acquisition of 500 units with an average NRY of 6.6% signed in H1 2015/16. FY 2014/15 H1 2015/ Fair value 30 April DGAG & Apollo other acquisitions Development -89 Block & Unit Sales Revaluation CAPEX Fair value 30 April Block & Unit Sales Revaluation CAPEX Fair value 31 October

27 Property Sales REVIEW PROPERTY SALES Property Sales FFO contribution in EURmn Unit Sales Block Sales (1) Total Revenues Property Sales FV of sold properties Expenses from property sales FFO contribution Unit Sales: 315 units sold with a Recurring FFO contribution of approx. EUR 18.2mn in H1 2015/16 Block Sales: 275 units sold with a Total FFO contribution of approx. EUR 2.6mn in H1 2015/16 Positive cash flow from Property Sales (2) in EURmn Unit Sales Block Sales Total Revenues Property Sales Debt repayment Expenses from property sales CF from Property Sales Within the business area Property Sales the Unit Sales business generated a positive cash flow of EUR 35.7mn in H1 2015/16 The Block Sales business generated a positive cash flow of EUR 14.0mn in H1 2015/16 H1 2015/16 contribution to Total FFO of EUR 20.8mn and freeing up cash of EUR 49.7mn (1) Excluding valuation effect from non-current assets held for sale EUR -0,1mn (2) Excluding changes in receivables relating to property sales 27

28 Property Development REVIEW PROPERTY DEVELOPMENT Results of Property Development segment split in EURmn Austria Germany Total Sale of real estate inventories Cost of real estate inventories sold Other expenses from sale of real estate inventories Real estate development expenses Revaluation of properties under construction Results of properties sold and available for sale Results of Property Development Austria / Vienna: Result of Property Development in Austria mainly related to the sales of completed projects in FY 2014/15: Linzer Strasse EUR 3.3mn Lindengasse EUR 3.1mn Missindorfstraße EUR 2.2mn Rosa-Jochmann-Ring EUR 1.9mn Other expenses also include non-capitalised expenses for projects under construction and projects with a planned construction start in FY 2015/16 and following years as well as a revaluation of development projects (one-off effect of approx. EUR +1mn) Germany / Berlin: The development result in Germany was mainly influenced by the sale of the following development projects: Legacy project Quartier am Pankepark project with 52 units was sold for EUR 11.8mn via a global exit with terms already agreed before acquisition Additionally, 24 units of the Westendpark project in 3 houses were sold for EUR 10.8mn Other expenses also include non-capitalised expenses for projects under construction, projects with a planned construction start in FY 2015/16 and following years as well as costs of land sites acquisitions.. 28

29 Operating Results PROPERTY PORTFOLIO Property Portfolio as of 31 Oct 2015 (in EURmn) Non current Assets Current assets Investment properties 3,696 Standing investment 3,625 Pipeline projects (1) 71 Other tangible assets 7 Owner- occupied properties 7 Investment properties under construction Non-current assets held for sale 22 0 Build in inventory (2) 22 Standing investments 0 Pipeline projects (3) 0 Inventories 241 Development projects (4) 241 The portfolio is divided into non-current and current assets in the balance sheet. The table to the left reconciles the numbers shown in this presentation with the respective balance sheet position as per 31 Oct (1) Land reserves and projects with construction start in > 6 months (2) Projects for standing investment portfolio under construction (3) Real estate plots to be sold (4) Projects with construction start in <12 months and under construction as well as completed projects (5) Development Total portfolio 3,967 3,967 Valuation methods Standing investments reclassified as investment properties are accounted for at fair value in accordance with IAS 40; standing investments also contain assets reclassified as held for sale (IFRS 5) which are valued at the lower of the carrying amount and fair value less cost to sell Pipeline projects are undeveloped land reserves and construction projects whose construction begins more than 6 months after the balance sheet date and these items are reclassified as investment properties which are accounted for at fair value (IAS 40) or also as assets held for sale (valued in accordance with IFRS 5) Build in inventory (Investment properties under construction) include subsidised rental properties in Austria that are currently under construction or whose construction will begin within 6 months. These items are accounted for at fair value Development projects are classified as real estate inventories and capitalised at acquisition or production costs and measured at the lower of carrying amount and net realisable value in accordance with IFRS 2 29

30 H1 RESULTS KEY FACTS & FIGURES

31 H1 Results - Key Facts and Figures INCOME STATEMENT Consolidated income statement in EURmn H1 2015/16 H1 2014/15 Change Rental revenues % Results of Asset Management % Results of Property Sales % Results of Property Development % Other operating income % Expenses not directly attributable % Result of operations % Other revaluation results >100% EBIT % Financial result >100% EBT >100% Income tax expenses % Deferred tax expenses >-100% Net profit >100% EBITDA adj. (1) % (1) Results of operations adjusted to account for valuation effects and deferred periods (IFRS 5) in the business area Property Sales (EUR 0.1mn) and Property Development (EUR -0.6mn) and revaluation of properties under construction (EUR -0.5mn) as well as impairment losses/revaluations (EUR -0.1mn) Comments: In previous year s H1 2014/15 DGAG and Apollo results contributed for 4 months only H1 2015/16 is mainly driven by one Global Exit in Berlin at low margin due to a legacy project with terms agreed prior to acquisition. While several units, some of which were completed in FY 2014/15, were sold the ramp up of construction and related cost incurred result in a relatively low H1 2015/16 result contribution. Revaluation was prepared by CBRE and is mainly driven by yield compression, rental increase, changes in market rents and the increase of sales price potentials Predominantly influenced by non-cash valuation effects (driven by increasing interest rate). Cash interest expenses amounted to EUR -23.4mn in H1 2015/16 compared to EUR -26.5mn in H1 2014/15. Deferred tax expenses are influenced by fair value valuation of standing investments, loans and derivatives. 31

32 H1 Results - Key Facts and Figures FUNDS FROM OPERATIONS Funds from Operations in EURmn H1 2015/16 H1 2014/15 Change Net profit >100% Results of Property Sales % Other financial result >-100% Fair value adjustments of investment properties >-100% Impairment losses/revaluations % Deferred taxes >-100% Other >-100% FFO % Unit Sales result % Recurring FFO % Block Sales result 1) >100% Total FFO % CAPEX % AFFO % Recurring FFO / share (in EUR) % (1) excluding valuation effect from non-current assets held for sale EUR -0.1mn (EUR 0.2mn). Recurring FFO development in EURmn Unit Sales FFO Comments: , ,4 26,1 23,9 H1 2015/16 H1 2014/15 Recurring FFO / share increased by EUR 0.03 Impact of 6 months DGAG and Apollo consolidation and positive financial result Adjustment of non-cash items (mainly positive valuation effects of loans and derivatives totalling EUR 57.9mn vs. negative effects from valuation of loans at amortised cost totalling EUR -3.8mn ) Adjustment of received commission for liabilities incurred EUR -2.4mn, one-off item in connection with a previous acquisition (refund of RETT) EUR - 2.0mn and other one-off expenses (EUR 1.9mn) Positive development mainly due to active Asset Management 32

33 H1 Results - Key Facts and Figures CASH FLOW CF was mainly influenced by the dividend payment and the operating activities Contribution from operating activities amounted to EUR 33.8mn relating to Asset Management and Property Development Gross Contribution from Property Sales amounted to EUR 95.9mn and is shown under investing activities while the repayment of debt relating to Property Sales is shown under the financing activities (EUR 24.2mn) 250 CF from financing activities EUR -84.8mn CF from investing activities EUR 75.3mn 100, ,8 95,9 1,4 173, Cash and cash equivalents (EURmn) 30Apr15 Operating activities Dividend Payment New Loans Repayment of financial liabilities (1) (2) Interest payments Acquisitions Unit & Block Sales Other Cash and cash equivalents (EURmn) 31Oct15 (1) Excluding accrued interest expenses (2) Including revenues of property sales and changes in receivables relating to property sales 33

34 H1 Results - Key Facts and Figures BALANCE SHEET Consolidated Balance Sheet in EURmn 31 Oct Apr 15 Change Investment properties 3, , % Properties under construction % Other assets % Non-current assets 3, , % Non-current assets held for sale % Inventories % Cash and cash equivalents % Other current assets (1) % Current assets % Total assets (1) 4, , % Equity 1, , % Financial liabilities 2, , % Deferred tax liabilities % Comments: Mainly influenced by revaluation of EUR 113.3mn and Property Sales of EUR -53mn Inventories contain development projects with 1,140 units that are currently under construction and 827 units with a planned construction start in FY 2015/16 Driven by positive cash flow (EUR 24.3mn) as the dividend payment of EUR -68.7mn was offset by positive operating and investing cash flow Includes ordinary bank loans of approx. EUR 1,428mn and subsidised loans of approx. EUR 641mn (total nominal amount of EUR 2.16bn with a Fair Value of EUR 2.07bn) Other non-current liabilities % Other current liabilities (1) % Total equity and liabilities (1) 4, , % (1) Change in comparative information: The initial application of IFRIC 21 led to an increase of EUR 3.5mn in trade and other receivables and trade and other liabilities. 34

35 H1 Results - Key Facts and Figures EPRA NAV Comments H1 2015/16 EPRA NAV was mainly influenced by the net profit after non-controlling interests, amounting to EUR 175.8mn as well as by the dividend payment (EUR -68.7mn) Increased adjustment for deferred taxes due to positive valuation results (investment properties, loans and derivatives) Adjustment for the fair value valuation effect of derivatives EPRA NAV in EURmn EPRA NAV/share EUR Increase by EUR 1.33 EPRA NAV/share EUR , ,0 1, ,8 25,9 14, , , ,0 500,0 0,0 EPRA NAV 30Apr15 Net profit after noncontrolling Dividend payment Deferred taxes FV of derivative interests financial instruments Changes in the FV of inventories Other (1) EPRA NAV 31Oct15 (1) Mainly relating to changes in the fair value of properties owned by BUWOG (EUR 1.1mn) 35

36 H1 Results - Key Facts and Figures FINANCIAL RESULT Highlights Structure of amount outstanding by type of financing Average interest rate of 2.12% Cash interest expenses of EUR -23.4mn only Subsidised loans 32% Bank loans 68% Financial result H1 2015/16 predominantly influenced by positive non-cash valuation items of EUR 57.9mn; these items are adjusted within the Recurring FFO calculation Ø interest rate: 1.44% Total amount: EUR 2,160mn Ø interest rate: 2.43% Debt Maturity Profile Basis: outstanding liabilities in EURmn p.a. as per 31 October 2015 by 10/ by 10/2017 by 10/2018 by 10/2019 by 10/2020 by 10/2021 regular repayment by 10/2022 by 10/2023 final repayment 337 by 10/2024 by 10/ from 11/2025 Key facts & KPIs Total amount EUR 2.2bn LTV 47.9% Ø maturity 16.1 yrs Lock in period 13.7 yrs Ø interest rate 2.12% Loan structure Hedged & Fixed interest loans 86% Variable interest loans 14% 36

37 1D 1W 1M 2M 3M 6M 7M 8M 9M 10M 11M 1Y 18M 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y 11Y 12Y 15Y 20Y 25Y 30Y 35Y 40Y 45Y 50Y in % H1 Results - Key Facts and Figures REVIEW FINANCIAL RESULT Financial result predominantly influenced by positive non-cash and one-off items (EUR 53.9mn) in EURmn H1 2015/16 Interest expenses - cash FV valuation of derivates 16.2 FV valuation of loans 41.7 Non-cash amortised costs -3.8 Other -0.7 Positive non-cash result from valuation of derivatives and financial liabilities (EUR 57.9mn) due to fair value accounting (driven by lower reference interest rate) Negative valuation effect from financial instruments at amortised cost, i.e. in particular non-subsidised loans which are measured at amortised cost rather than fair value Financial result 30.0 thereof non-cash & one-off 53.9 Development of the EUR swap curve 30 April 2015 to 31 October Non-cash and one-off items are adjusted within the Recurring FFO calculation 1,5 1 0,5 0-0,5 30 April July October

38 CAPITAL MARKET POSITIONING

39 Appendix CAPITAL MARKET POSITIONING Comments on BUWOG capital market performance Current share price of EUR (as of 19 Feb 2016) represents 56% (incl. dividends) increase to first trading price on 28 April 2014 Current share price represents 1% discount to last reported EPRA NAV/share 14% discount to analysts average target price Daily average trading volume since listing date of approx. 200,000 shares, i.e. EUR 3.4mn respectively BUWOG vs relevant indices (1) (28 Apr Feb 2016) 23 Oct /share dividend payment (adjustment made on 15 Oct) 20,5 19,5 18,5 17,5 16,5 15,5 14,5 13,5 12,5 11,5 10,5 22 Oct /share dividend payment (adjustment made on 14 Oct) 56% 19% 18% -14% Analyst coverage Institution Date Target price Recommendation Baader Bank 22/12/2015 EUR Buy Barclays 17/09/2015 EUR Overweight Berenberg 05/01/2016 EUR Buy Deutsche Bank 09/02/2016 EUR Buy Erste Bank 01/10/2015 EUR Accumulate HSBC 08/04/2015 EUR Buy Kepler Cheuvreux 30/09/2015 EUR Buy M.M. Warburg 07/01/2016 EUR Buy Raiffeisen Centrobank 01/10/2015 EUR Buy BUWOG AG EPRA Developed Europe MDAX ATX Source: Thomson Reuters ¹ Rebased on Buwog 28 Apr 2014 IPO price Average target price EUR

40 Capital Market Positioning SHAREHOLDER STRUCTURE Comments on IMMOFINANZ Group s bonds Currently 99.6mn BUWOG shares outstanding Thereof 38.5mn BUWOG shares are held by IMMOFINANZ GROUP 2 convertible bonds issued prior to BUWOG s spin-off by IMMOFINANZ AG outstanding entitle bondholders to convert into IMMOFINANZ shares and approx. 7.9mn existing BUWOG shares currently held by IMMOFINANZ Shareholder Structure as of 18 September 2015 Free float 61.3% Total shares 99.6mn IMMOFINANZ Group 38.7% IMMOFINANZ Group s convertible bonds (1) Volume (EURmn) 21.4 CB 2017 CB 2018 Denomination (EURmn) 0.1 Conversion right IIA AV 12, BWO AV Coupon 3.75% Put Option expired Term end 19Nov2017 Volume (EURmn) Denomination (EUR) 4.12 Conversion right IIA AV BWO AV Coupon 4.25% 7.9mn currently outstanding BUWOG shares Pro Forma Shareholder Structure following potential exercise of the conversion rights Free float 61.3% Total shares 99.6mn IMMOFINANZ Group Convertible bonds 7.9% IMMOFINANZ Group 30.8% Put Option 08Mar2016 Term end 08Mar2018 (1) as of 30 March

41 OUTLOOK

42 Outlook STRATEGIC AGENDA Strategy Strategy Targeted Mid-term Contribution to Income Asset Management Further increase of rent levels Optimisation and streamlining of portfolio Geographic shift through capital recycling Increase rent levels and engage in cost optimisation through management of maintenance/capex Further grow the portfolio through acquisitions in selected regional clusters approx. 70% Unit Sales Focus on highly profitable Unit Sales approx. 15% Property Sales Block Sales Block sales in suburban areas on an opportunistic basis or for portfolio optimisation, i.e. portfolio concentration Opportunistic Block sales for portfolio optimisation approx. 15% Property Development Approx. 80% built for subsequent disposal, remainder for own portfolio Further plot acquisitions Further build up development activities in Berlin Investigation of further growth potential Unique business model providing cash flow resilience even in off-cycles, differentiating BUWOG from its peers 42

43 Outlook GUIDANCE Asset Management Increase in rental income based on active asset management Expected like-for-like rental growth of approx. 1.5% - 2.0% group-wide Profitable expansion of property portfolio in Germany Optimisation of standing investment portfolio through cycle-optimised block sales Property Sales Units sales: Normalised rate of 550 units sales p.a. after record development in FY 2014/15 with 617 units sold at 59% margin. Guidance reflects the recurring nature of the business and exceeds former expectations of approx. 500 units p.a. with high margins on fair value (approx. >50%) Block sales: opportunistic block sales optimising and condensing the portfolio Property Development Development pipeline of approx. EUR 1.8 billion equalling approx. 6,300 units 1,140 units currently under construction with an investment volume of EUR 378mn Recurring FFO to approx. EUR mn for FY 2015/16 Dividend target: EUR 0.69 per share 43

44 Outlook FINANCIAL CALENDAR 10 Mar th HSBC Real Estate Conference, Frankfurt 11 Mar 2016 Commerzbank German Residential Property Forum, London 24 Mar 2016 Publication of 9m report 2015/16 05 Apr 2016 Vienna Private Bank Real Estate Shares- Investment - Cercle, Vienna Financial Calendar 13 Apr 2016 Raiffeisen Investor Conference, Zürs 27 Apr 2016 Vienna Stock Exchange: Stock Exchange information day, Innsbruck 10 May 2016 Vienna Stock Exchange: Stock Exchange information day, Klagenfurt Sep 2016 Berenberg and Goldman Sachs Fifth German Corporate Conference, Munich Sep 2016 Baader Investment Conference, Munich 44

45 APPENDIX

46 Appendix STATISTICS OF STANDING INVESTMENT PORTFOLIO AS OF 31 OCTOBER 2015 Number of units Percentage of total units Floor area at period end (sqm) Annualised in-place rent (TEUR)(1) Monthly in-place rent(1) (EUR per sqm) (1) Based on monthly in-place rent (excluding utilities) as of reporting date (2) Based on fair value of standing investments according to CBRE valuation reports as of 31 October 2015 (3) Annualised in-place rent (based on monthly in-place rent excluding utilities as of the reporting date) in relation to fair value (4) Based on sqm (5) More than 50,000 inhabitants and a significant share of the portfolio (6) The immediate catchment area up to about 15 km around federal capitals, state capitals and major cities, as well as Hamburg Fair Value(2) Percentage of (TEUR) total Fair Value Fair Value(2) (EUR per sqm) Net rental yield(3) Federal capitals ,0% , ,8% ,1% 3,5% Wien ,2% , ,1% ,4% 4,4% Berlin ,8% , ,6% ,1% 1,8% state capitals and major cities (5) ,1% , ,1% 895 6,3% 2,7% Lübeck ,3% , ,2% 919 7,3% 2,0% Kiel ,4% , ,2% 961 7,1% 1,2% Villach ,4% , ,3% 609 6,7% 2,4% Kassel ,0% , ,9% 644 7,5% 5,6% Braunschweig ,5% , ,0% 958 7,0% 0,7% Graz ,3% , ,6% ,4% 3,1% Innsbruck 721 1,4% , ,0% ,2% 1,7% Lüneburg 703 1,4% , ,1% 815 7,2% 9,5% Salzburg 684 1,3% , ,8% ,3% 1,4% Klagenfurt 572 1,1% , ,7% 620 6,6% 6,0% Linz 501 1,0% , ,2% ,0% 3,4% suburban areas (6) ,7% , ,7% 943 5,7% 4,7% Hamburg ,6% , ,1% ,3% 0,8% Klagenfurt ,8% , ,2% 773 5,4% 7,6% Villach ,2% , ,7% 716 5,6% 11,1% Berlin 529 1,0% , ,6% 623 9,1% 7,0% Wien 471 0,9% , ,5% ,7% 4,1% Salzburg 450 0,9% , ,4% ,3% 3,8% Graz 425 0,8% , ,7% 832 6,5% 2,6% Kiel 366 0,7% , ,6% 808 8,6% 3,1% Innsbruck 243 0,5% , ,7% ,7% 1,2% Braunschweig 131 0,3% , ,1% 651 9,5% 4,8% Rural Areas ,1% , ,4% 711 6,6% 7,1% Rural Areas Austria ,0% , ,4% 673 5,8% 8,4% Rural Areas Germany ,1% , ,0% 779 8,0% 4,7% Total Austria ,0% , ,4% ,3% 5,5% Total Germany ,0% , ,6% 934 7,0% 2,7% Total ,0% , ,0% ,4% 4,2% Vacancy rate(4) 46

47 Appendix INCOME STATEMENT Consolidated income statement in EURmn FY 2014/15 FY 2013/14 (1) Change Rental revenues % Results of Asset Management % Results of Property Sales % Results of Property Development >100% Other operating income % Expenses not directly attributable % Result of operations % Other revaluation results >100% EBIT % Financial result >100% EBT % Income tax expenses >100% Deferred tax expenses % Net profit % EBITDA adj % (1) Earnings data of the previous financial year are reported on a pro-forma basis Comments: Mainly influenced by DGAG and Apollo acquisition in FY 2014/15 Mainly influenced by expansion of BUWOG s corporate structures and integration of DGAG and its management platform Thereof EUR 105.7mn from valuation of investment properties. Revaluation is mainly driven by rental increase, changes in market rents, yield compression, increase of sales price potentials Predominantly influenced by non-cash valuation effects (driven by lowering interest rate) and one-off items (due to refinancing activities). Cash interest expenses amounted to EUR -46.8mn FY 2013/14 income tax was influenced by a positive one-off item of EUR 13 mn relating to a tax settlement with IMMOFINANZ AG whereas in FY 2014/15 a one-off of EUR 5mn only was recognised due to the final tax settlement with IMMOFINANZ AG. Expected tax run-rate of approx. 20% 47

48 Appendix FUNDS FROM OPERATIONS Funds from Operations in EURmn FY 2014/15 FY 2013/14 (1) Change Net profit % Results of Property Sales % Other financial result >100% Fair value adjustments of investment properties >100% Impairment losses/revaluations >-100% Deferred taxes % Other >100% FFO % Unit Sales result % Recurring FFO % Block Sales result 2) % Total FFO % CAPEX >100% AFFO % Recurring FFO / share (in EUR) % (1) Data of the previous financial year are reported on a pro-forma basis (2) including valuation effect from non-current assets held for sale EUR 0.0 million (EUR 1.5 million), block sales in 2013/14, with cash effect 2014/15 EUR -1.5 million as well as block sales in 2012/13, with cash effect 2013/14 EUR +5.6 million. Recurring FFO development in EURmn Unit Sales FFO Comments: FY2014/ FY2013/14 Recurring FFO / share increased by EUR 0.23 Impact of DGAG and as well as negative financial result Adjustment of non-cash (mainly valuation effects of loans and derivatives EUR 148.3mn) and one-off items relating to the refinancing of the convertible (EUR 13.1mn) Adjustment of Badwill of the Apollo acquisition (EUR -4.3mn) as well as amortization and depreciation Adjustment of received commission for liabilities incurred EUR -5.0mn and expenses for stock option plan EUR +1.2m Positive development mainly due to profit contribution of DGAG and Apollo and successful Unit Sales business (EUR 34.9mn) 48

49 Appendix CASH FLOW CF was mainly influenced by the acquisition of the DGAG and Apollo portfolio as well as by refinancing activities Contribution from operating activities amounted to EUR 103.9mn relating to Asset Management and Property Development Gross Contribution from Property Sales amounted to EUR 98.5mn and is shown under investing activities while the repayment of debt relating to Property Sales is shown under the financing activities (EUR 25.6mn) Financing activities were mainly driven by financing DGAG and Apollo; acquisition and refinancing activities The net purchase price of DGAG and Apollo amounted to EUR 329.3mn while the total transaction volume was EUR 942mn 1.400, ,0 CF from financing activities EUR 163.5mn ,0 800,0 600,0 400,0 200, ) CF from investing activities EUR mn ) ) 0,0 Cash and cash equivalents (EURmn) 30Apr14 Operating activities New Loans Repayment of financial liabilities Refinancing of VBL liabilities Interest payments Dividend payment Expenses refinancing convertible bond DGAG & Apollo (net purchase price) other Acquisition Unit & Block Sales Other Cash and cash equivalents (EURmn) 30Apr15 (1) Excluding accrued interest expenses (2) Including revenues of property sales (EUR 133.8mn) and changes in receivables relating to property sales (EUR -35.4mn) (3) Including deconsolidation result EUR 11.3mn (deconsolidation of Facility Management and Lindengasse) 49

50 Appendix EPRA NAV Comments EPRA NAV in EURmn FY 2014/15 EPRA NAV was mainly influenced by the dividend payment as well as by valuation effects of the derivatives Net profit after non-controlling interest amounted to EUR 39.7mn Deferred taxes increased due to valuation result (investment properties, loans and derivatives) Changes in goodwill relate to the DGAG acquisition EPRA NAV/share EUR Increase by EUR 0.58 EPRA NAV/share EUR , ) 1, ,0 1, , , , ,0 EPRA NAV 30Apr14 Dividend payment Net profit after noncontrolling interests Deferred taxes FV of derivative financial instruments Goodwill Other EPRA NAV 30Apr15 (1) Mainly relating to changes in the fair value of inventory (EUR2,6mn) and properties owned by BUWOG (EUR 0.5mn) 50

51 Appendix REVIEW FINANCIAL RESULT Financial result predominantly influenced by negative non-cash and one-off items (EUR 171.1mn) in EURmn FY 2014/15 Interest expenses - cash FV valuation of derivatives FV valuation of loans Non-cash amortised cost -5.1 Expenses refinancing convertible Commission for liabilities incurred (one-off) -4.5 Other 1.0 Financial result thereof non-cash & one-off Negative non-cash result from valuation of derivatives and financial liabilities (EUR 148.3mn) due to fair value accounting (driven by lower reference interest rate) Negative valuation effect from financial instruments at amortised costs, i.e. in particular non-subsidised loans which are measured at amortised cost rather than fair value; also includes EUR -1.6mn from effective interest method applicable to convertible bond Negative result of EUR -13.1mn relating to the refinancing of the convertible bond, thereof EUR -10.5mn non-cash valuation effects and a cash effective one-off amounting to EUR -2.6mn Commission for liabilities incurred represent a one-off item due to final separation from IMMOFINANZ AG Development of the EUR Swap curve 30 April 2014 to 31 January 2015 and 30 April 2015 % 2,5 2 1,5 Non-cash items as well as one-offs are adjusted within the Recurring FFO calculation 1 0,5 0-0,5 30 Apr Jan Apr

52 Appendix HIGH MARGIN TENANT-FINANCED DEVELOPMENT Implied equity commitment key to understand the full project return potential: Project Otterweg in Vienna In EUR thousand Planning/Construction Year (3)-(1) Renting Period Year 1-10 Divestment Period Year Cash-Out EUR (15,491) EUR (4,716) EUR (12,656) Purchase Cost of Land EUR (1,750) Construction Cost EUR (13,741) Interest costs EUR (3,411) Amortisation of subsidised and bank loans EUR (1,305) Interest Cost EUR (2,362) Amortisation and repayment of subsidised and bank loans EUR (10,294) Equity contribution only required for purchase of land and repaid by tenant contributions upon completion Low rental income during renting period, but tenant contributions as upfront payment Subsidised and bank loans EUR 11,599 Tenant Contributions EUR 3,892 Rental Income EUR 5,135 Rental Income EUR 13,467 Income from Sales EUR 22,396 Cash-In EUR 15,491 EUR 5,135 EUR 35,863 Net CF 0 EUR 420 EUR 23,207 Equity Generation 0 EUR 420 EUR 23,627 During divestment period single unit sales, then sale of remainder in block sale Tenant contributions as second rent paid upfront, which are amortized over 100 years Despite long project period, equity is only tied up for a very limited time Due to the minimal use of equity required, this sample property development yields an levered IRR of 11.7% over the period of 28 years 52

53 Appendix PORTFOLIO STATISTICS Construction Period as of 31 Oct 2015 (as % of lettable space) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 10% 10% 6% 7% 4% 3% 16% 23% 39% 16% 12% 12% 4% 6% 18% < Ab % 1% 7% 60% 50% 40% 30% 20% 10% 0% Unit Size as of 31 Oct 2015 (as % of lettable space) 0% 2% 2% 5% 19% 14% 26% 26% 52% 19% Ø Unit Size in Austria: 77 m 2 Ø Unit Size in Germany: 62 m 2 Ø Unit Size Portfolio: 69 m 2 4% 23% 4% 5% 1% < 40 m m m m2 > 100 m2 Number of Floors as of 31 Oct 2015 (as % of lettable space) Austria Germany Total Austria Germany Total Monthly in-place rent (net cold rent) as of 31 Oct 2015 (in EUR per sqm) 80% 70% 60% 50% 40% 30% 20% 10% 0% 71% 64% 58% 25% 19% 22% 18% 14% 10% 0 to 4 floors 5 to 6 floors More than 6 floors Austria Germany Total Austria Germany Total Less than % 0% 12% % 1% 20% % 11% 22% % 26% 33% Higher than % 9% 14% 53

54 Appendix EUROPEAN HOUSING OVERVIEW Housing situations as per 2012 Germany: 47 % of population live in rental apartments Switzerland Netherlands Denmark Germany Great Britain Belgium Austria France Italy Poland EU-28 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% rent market price rent - subsidised ownership Source: bulwiengesa, according to Eurostat Germany is the largest rental market in Western and Central Europe 38.6 % of inhabitants live in rental apartments which are let at market prices 8.1 % live in rental apartments with subsidised rents (subsidised apartments) Thus, Germany with 80.7m inhabitants represents the by-far largest market for rental apartments in Europe. Austria: 43 % of population live in rental apartments Proportionally Austria is the third largest market for rental apartments in Western and Central Europe after Switzerland and Germany 16.4% live in rental apartments with subsidised rents (subsidised apartments) 26.1% of inhabitants live in apartments which are let at market price 54

55 Appendix AUSTRIA Population m Household growth % GDP per inhabitant 2013 EUR 38,050 GDP change % Jobless rate 09/2014* 4.8 % Source: Austrian Federal Office for Statistics, *Eurostat Market Characteristics Forecast increase of households until 2025 by 7.7% also based on increasing number of population Low share of residential living cost of 24 % of household income allows for potential to increase Increasing population combined with shrinking household sizes and relatively low or decreasing new construction lead to significant demand for residential apartments Development of rents Regionally very different development of market rents Comprehensive reglementation of rents through rent governing legislation Overhang of demand leads to higher market rents in metropolitan areas Strong trend towards owner occupied apartments and houses Highly attractive environment for single unit purchases Residential living cost share Construction volume Austrian residential construction p.a. in k units Development of households Residential living costs 23% Residential living costs 24% One-person 1-Personenhaushalte household Two-person 2-Personenhaushalte household Three 3-Personenhaushalte person household Four 4-Personenhaushalte person household 77% Remaining living costs 76% Remaining living costs Five-person 5-Personenhaushalte household und mehr Vienna Austria Source: Statistik Austria Source: bulwiengesa according to Statistik Austria 55

56 Appendix VIENNA 14. District Penzing 13. District Hietzing District Liesing 19. District Doebling 18. Development District Floridsdorf 20. District Brigittenau District Favoriten District Simmering 22. District Donaustadt Standing investments Market characteristics Growth of population between 2013 and 2025 forecast at 9.6% Increase of households between 2013 and 2025 expected at 9.1% Low share of residential living cost of 23% of household income Strong tenant market with low ratio of ownership at 14% Relatively low new residential construction volume Rent development Increasing number of households creates increasing demand Dampening effect on prices from high share of regulated rents installed by legal regime and ownership structure Property prices increased stronger in recent years than rents Overhang of demand leads to higher market rents in non-regulated segment Strong tenant market Housing indicators Vienna Austria Ownership 14% Ownership 57% Supply gap approx. 14, % Lease 43% Lease Ø change in number of households p.a Source: Statistik Austria Ø apartment completions p.a Ø new construction required (apartments) p.a based on households Source: bulwiengesa 56

57 Germany France Italy UK Spain Poland Netherlands Portugal Belgium Sweden Czech Republic Hungary Switzerland Austria Denmark Norway Finland Slovakia Ireland Appendix GERMANY Population m Household growth % GDP per inhabitant 2013 EUR 34,785 GDP change % Jobless rate 09/2014* 5.0 % Source: German Federal Office for Statistics, *Eurostat Market Characteristics Largest number of apartments in Europe in one of the largest residential construction markets Trend towards growing number of households continues according to forecast until 2015 despite stagnating or decreasing number of population Significant demand for apartments, mainly dependent on demographics Comparatively low residential construction volumes Development of rents Generally inhomogeneous market; high degree of variation, most of all strong disparity between Western and Eastern Germany Historically constant level of rents with clear potential for increases predominantly in Berlin Overhang of demand leads to increasing market rents in metropolitan areas and university towns as well as areas in between Number of apartments in Europe in thousands Development of households in millions Germany has the largest housing stock in Europe Source: German Federal Office for Statistics, * bulwiengesa Source: German Federal Office for Statistics 57

58 Appendix REGIONAL DEVELOPMENT IN LIVING SPACE DEMAND IN GERMANY FROM 2015 TO 2030 Highest increases in living space demand in Germany s Big 7 cities and their surrounding areas Equally high increases in Northern Lower Saxony, Baden-Württemberg and South Bavaria Lower increases in living space demand in former East Germany, (with Berlin and its surrounding areas showing an exceptional increase of 10%) Dresden and Leipzig From 2015 to 2030 the demand for living space in former West Germany is expected to rise by 8.2%, in former East Germany only by 2.1% Development in living space demand in total from 2015 to 2030 in %, Germany to below -5,0-5,0 to below -2,5-2,5 to below 2,5 2,5 to below 5,0 5,0 to below 7,5 7,5 to below 10,0 10,0 and more Source: BBSR 58

59 Appendix BERLIN Spandau Reinickendorf Charlottenburg- Wilmersdorf Steglitz- Zehlendorf Development Mitte Tempelhof- Schöneberg Pankow Neukölln Marzahn- Hellersdorf Treptow- Köpenick Standing investments Market characteristics Population growth from 3.7 % until 2025 forecast Number of households to decrease by 0.7% until 2025 Low share of residential costs of 24 % of household income Strong tenant market with low ratio of of 15 % privately owned homes Comparatively low residential construction volume Rent development Based on the attractiveness of the city demand outgrows supply Overhang of demand leads to higher market rents Market rents can be realised in new lettings Market development reflected in Berlin rent index (Mietspiegel) legal basis for rent increases in existing agreements Strong tenant market Housing indicators Berlin Germany Ownership 15% Ownership 46% Supply gap approx. 13, based on households Source: bulwiengesa 85% Lease 54% Lease Ø change in number of households p.a Source: Statistical office Berlin-Brandenburg Ø apartment completions p.a Ø new construction required (apartments) p.a

60 Appendix REGION NW GERMANY POSITIVE DEVELOPMENT OF HOUSEHOLDS ( ) Development of Private households ( ) Bavaria 7,30% Baden Wuerttemberg 6,59% Hamburg 5,16% Berlin 3,30% Schleswig - Holstein 2,40% Hassia 2,34% North Rhine Westphalia 1,93% Rhineland-Palatinate 1,30% Lower Saxony 0,69% Bremen 0,11% -1,70% Brandenburg -1,85% Mecklenburg Pomerania -3,83% Saarland -7,85% Thuringia -8,01% Saxony -11,39% Saxony-Anhalt -15% -10% -5% 0% 5% 10% Total population in Germany to shrink from currently 80.7m to 79.1m (2025) based on demographic change The number of private households in BUWOG target regions Hamburg, Schleswig Holstein, Hassia and Lower Saxony will grow over proportionally to the forecast German average until 2025 Smaller types of households will be prevalent throughout Germany until 2025 Overhang of demand Despite consequences of demographic change further household growth is expected in larger metropolitan areas and university cities in Germany Two effects are responsible: a) Trend towards smaller households ( Single - households) and b) Increasing attractiveness of cities (i.a. cultural and educational infrastructure). BUWOG target regions Source: German Federal Office for Statistics, forecast bulwiengesa, IBB research 60

61 Appendix NW GERMANY BUWOG UNITS IN GROWING CITIES Development of households, rents and property prices in 2013 in thousands Household Growth rate Household growth rate Rent development (market) Property prices development (market) BUWOG units (1) as % of total Berlin 1, % 16.8% 16.6% 10.8% Hamburg % 4.7% 14.6% 5.6% Lueneburg % 8.6% 11.4% 1.4% Braunschweig % 8.2% 12.9% 2.8% Kassel % 6.2% 23.7% 3.0% Luebeck % 9.8% 19.2% 12.3% Kiel % % 7.1% (1) Cities and suburban area as per 31 Oct 2015 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 61

62 Appendix PORTFOLIO BY RENT RESTRICTION Comments A considerable part of the Group s portfolio, both in Austria and in Germany was constructed using public subsidies and is therefore subject to rent restriction such as e.g. WGG (cost covering rent) in Austria Rent increases are limited by federal legislation In Austria, rent potential can be unlocked through tenant fluctuation and changes in e.g. amortisation and interest rates which can be charged on to the tenants Portfolio Split by Type of Rent as % of in-place rent as of 31 Oct 2015 Restricted 56% Other (incl. commercial) 7% Germany 19% Austria 37% Austria 4% Germany 33% Unrestricted/ at Market level 37% In addition, property management costs can be recovered from tenants in Austria Type of Rent by Country as of 31 Oct 2015 Type Monthly in-place Rent at Period End in EUR as % of total Austria Unrestricted / at market level MRG (1) 408,872 2% WGG Market-based rent (2) 224,331 2% Unregulated rent 46,375 0% Austria Restricted WGG Cost covering (3) 4,758,766 29% Guideline-based rent (4) 1,334,441 8% Germany Unrestricted Unregulated rent 5,362,313 33% Germany Restricted Cost covering 3,164,623 19% Others (including commercial) 1,126,378 7% Total 16,426, % (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 62

63 Appendix 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 Austrian Tenancy Act MRG generally regulates the lease of apartments, parts of apartments, business premises of all types, it can be fully, partially or not applicable at all In cases not governed by the MRG, the Austrian Civil Code (AGBG) usually applies Structural alterations According ABGB provisions and under partial MRG scope, the tenant must tolerate reasonable structural alterations by the landlord Under full MRG scope, the landlord must, under certain conditions, allow alterations to the object Term and termination Fixed-term lease agreements may not be terminated prior to the end of the lease term Need of a good cause to terminate the lease agreement (non payment, lack of proper maintenance, landlord s urgent own need, etc.) Restrictions on selling residential real estate Restrictions on selling residential real estate are not particularly provided for in MRG Nonetheless, there are provisions that in their effects resemble selling restrictions Rent Usually, rent may be freely negotiated and is usually paid in advance on a monthly basis For lease agreements falling under the full scope of the MRG, the rent may be capped Energy Performance Certificate The Energy Performance Certificate Submission Act forces the seller or lessor to show an energy performance certificate to his contracting partner Service charges, maintenance, insurance Within the full scope of the MRG, the landlord may charge only specific service charges and incidental costs to the tenant The landlord has to perform works necessary for maintenance of the common areas and leased object Condominium Act Condominium, as a special form of joint ownership, is governed by the Condominium Act (WEG) WEG entitles the owner to exclusive use and disposal of an apartment Subletting, assignment, change of control Under partial MRG scope, the subletting without the landlord s approval is not permitted, it is possible in certain cases under full MRG scope Act on Non-Profit Housing The Austrian Act on Non-profit Housing (WGG) governs buildings constructed by a non-profit housing company Under the WGG, rent must as a rule be set in accordance with the cost covering principle 63

64 Unrestricted Restricted Appendix BUWOG RENT MODELS IN AUSTRIA Austrian Rent Models Share of BUWOG s Austrian Portfolio (1) Monthly inplace rent at period end ( /m²) Description Cost- Covering Rents 14 (1) WGG Guideline- Based Rents 13 (6) WGG 64% 18% Composition of monthly net rent Refinancing of production cost (land, construction and other costs) Contribution for maintenance (EVB I = 0,43 EUR/m² and EVB II = Ø0.90 EUR/m² since 1 April 2014) Default component (2% of production costs) Changes in interest and amortisation (usually years) increase rent Risk of change in interest charged on to tenant Total of 35% of rent in form of EVB subject to CPI adjustment with a 5% threshold Regime switch at fluctuation = upside potential if cost covering rent < guideline-based rent Composition of monthly net rent Rent rate = 3.50 per sqm and month Surcharge for return on equity for land costs and default component Rent rate subject to CPI adjustment Change between restricted rent models possible as a consequence of tenant fluctuation WGG is applicable when the property was built by a nonprofit cooperation If the property has been subject to WGG, restrictions apply indefinitely BUWOG exited the non-profit status in 2001 Market-Based Rents 13 (4) and (5) WGG Austrian Rental Law 16 in connection with 1 (4) No.1 MRG 3% 6% Composition of monthly net rent Rent based on local, market-based rents Net rent subject to CPI adjustment Upside potential from fluctuation Composition of monthly net rent Rent based on local, market-based rents once subsidies are fully amortized Maximum rent (c per sqm and month) as long as subsidies have not been repaid Net rent subject to CPI adjustment The development of subsidized rental apartments into the portfolio is not subject to WGG (1) Based on total monthly in-place rent at period end (30 April 2015). Other including commercial rents amounts to 9% of total in-place rent of BUWOG s Austrian portfolio 64

65 Appendix 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 protection against termination of residential leases Generally, a landlord may terminate an unlimited residential lease only if the landlord has a legitimate interest in ending the lease Requirement of energy certificates An energy certificate must be made available to potential buyers or tenants Limits on rent increases Rental Brake ( Mietpreisbremse ) The ability of landlords to increase rent unilaterally in existing tenancy agreements is limited As of this time, the capping limit is reduced from 20% to 15% by the government of German federal state in additional regions beside Berlin and Munich to supply of affordable housing is particularly threatened. Since June 2015 the rental amount for new leases may be limited in regions where the supply of affordable housing is particularly threatened. In these regions, e.g. Berlin and Hamburg, the relevant German federal state limit such amount to a maximum of 10% above the locally prevailing comparative levels of rent. Maintenance and modernisation measures ( Erhaltungsmaßnahmen, Modernisierungs -maßnahmen ) Under the bill of the Tenancy Law Amendment Act, tenants are required to tolerate maintenance and modernisation measures Landlords are entitled to allocate costs for modernisation measures to tenants by way of an increase of the annual rent in the amount of 11% of the cost incurred (less the costs that would have been incurred for maintenance measures anyway), with the exception of certain types of measures or that measures that would constitute an unreasonable hardship for the tenant A rent increase after modernisation measures is currently being discussed by the government Statutory restrictions on selling residential real estate Landlord s maintenance obligations If rented residential units have been converted into condominiums or if such conversion is planned, the tenant has a statutory pre-emptive right to purchase the unit on the same terms as a third-party buyer The landlord is obliged to keep up and maintain the asset, including the exterior and interior fittings and substance Under certain conditions this obligation can be transferred to the tenant Schleswig- Holstein Property purchases Schleswig-Holstein, where a large part of the DGAG Portfolio is located, the rent originally applicable has principally be based on the costs incurred for the construction of the properties. Rent increases were strong limited. Since July 1, 2014 the increase is limited to an aggregate increase of nine per cent of the originally agreed rent within three years. The purchaser of real estate is required to pay real estate transfer tax ( Grunderwerbsteuer ); the tax currently varies from state to state between 3.5% and 6.5%, plus c. 1.5% notary fees 65

66 Appendix CBRE VALUATION ASSUMPTIONS Austria Discounted Cash Flow method over an 80-year period Discount rate reflects market situation, yield expectations and uncertainty involved in the forecasting of future cash flows Elements of the DCF model are: Regulated residential rent ( Kostendeckende Miete, KDM), current KDM payable is applied, increased through 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 federal states Reasonable rent vs. open-market rent, both indexed at the inflation rate Other rent and sale prices includes parameter such as caretaker, garage, parking space Net rental income: the accommodation that is considered as being let at the end of each period is calculated by deducting vacancy and actual privatised space from the accommodation at the end of the period Sale proceeds from individual privatization: privatization space multiplied by sqm price, to calculate marketing costs Sales results: net rental income, plus sale proceeds less cost of sales Gross capital value: sum of net present values Transaction costs are deducted, the result being the net capital value Germany The DCF method has been used Discount rate reflects market situation, yield expectations and uncertainty involved in the forecasting of future cash flows The assumptions adopted in the valuation model reflect the average estimates that would be made at the relevant date of valuation by investors Land Approach All assets have been assigned to one of the following categories Future development: land capable of development, unserviced land zoned for development and land with hope value for development Other: woodland, agricultural land and gardens The land assets were balued using following methods Comparison model (land capable of development, woodland, agricultural land and gardens), using the official Bodenrichtwert Deductive valuation approach for potential building land by Walter Seele (land with hope value for development and unserviced land zoned for development) Source: CBRE valuation. 66

67 Appendix BUWOG SENIOR MANAGEMENT TEAM Mag. Daniel Riedl, 46 Andreas Segal, 46 DI Herwig Teufelsdorfer, 46 CEO of BUWOG since November 2013 (Last 10 years BUWOG Managing Director or Chairman of the Supervisory Board) Deputy CEO and CFO of BUWOG since January 2016 Foto HT COO of BUWOG since July 2015 (Last 2 years BUWOG Head of Asset Management & Property Sales) 17 years real estate experience 6 years COO experience Previous positions BUWOG Managing Director or Chairman of the Supervisory Board COO and Member of the Executive Board, IMMOFINANZ, responsible for the residential property business in Eastern and Western Europe, as well as human resources, marketing and IT corporate services Studied Business Administration at Vienna University of Economics FRICS 10 years CFO, Co-CEO and supervisory board experience 13 years real estate experience Previous positions CFO Deutsche Wohnen AG Chairman of the Supervisory Board GSW Immbilien AG CFO and Co-CEO GSW Immobilien AG Managing Director ProMarkt Handels GmbH Managing Director Wegert Holding GmbH Legal bar exam; intermediate diploma in business administration Advanced Management Program at Harvard Business School 16 years real estate experience Previous positions Member of The Board IVG Austria AG Head of Investment Bank Austria Real Invest Group Head of Portfoliomanagement BIG GmbH Head of Corporate and Portfolio Strategy Vivico (CA Immo Deutschland) Studied Engineering at University of Technologies Graz CREM (ebs), MRICS 67

68 BUWOG AG T: E: investor@buwog.com W: Holger Lueth Head of Investor Relations and Corporate Finance T: E: holger.lueth@buwog.com 68