By the first half of the year, UBM Development had already managed to generate the announced cash totaling 75 million by selling non-strategic assets. As of June 30th, UBM reported liquidity of Ꞓ179 million, over Ꞓ50 million more than at the end of the first quarter and also above the level at the end of the year.
“In line with our announcement of “liquidity before profitability”, we continue to report a loss in the first half of the year, but it was halved compared to the same period last year,” says UBM CEO Thomas G. Winkler. UBM recorded a negative profit before taxes of Ꞓ 10.9 million in the first half of 2024.
Solid financial position
Thanks to its strong focus on cash management, UBM managed to raise no doubts about its sufficient liquidity in the first half of 2024. As of June 30, 2024, the company has 179.4 million euros in liquid assets. In addition, UBM will not have any bond repayments due until November 2025, which gives it an overall competitive advantage over other market participants. Net debt was reduced in the first half of the year and stood at Ꞓ 550.0 million as of June 30, 2024 (2023: Ꞓ 610.2 million). With total assets of Ꞓ 1,188.8 million, this results in an equity ratio of 30.4%.
Sustainable pipeline with 3,000 apartments
In addition to UBM’s solid balance sheet, UBM’s consistent market positioning as one of the largest developers of wood hybrid buildings in Europe helps. To this end, investments will continue to be made in the 1.9 billion euro project pipeline and the projects will be continuously advanced. The majority of the projects (over 90%) are located in Germany and Austria, of which 59% are residential and 41% are light industrial & office. UBM sees the successful apartment sales in the first half of 2024, which have already exceeded the sales figures for the entire year 2023, as early indicators of a trend reversal. There are currently around 3,000 apartments under development or sale.
outlook
Despite a weak third quarter, UBM expects a significant reduction in losses in 2024 compared to the previous year; However, securing liquidity remains the priority. A return to profitability is expected in the 2025 financial year. This is likely to be due to the ever-increasing supply gap in housing, as well as the further increase in office rent levels and efficiency improvements in implementation. Due to the current market shakeout, there can be no doubt in the medium term that the remaining market participants will then benefit disproportionately from it.
The earnings and financial figures in detail
In the first half of 2024, UBM generated total revenue of Ꞓ 249.1 million after Ꞓ 116.2 million in the comparable period of the previous year. Earnings before taxes (EBT) at Ꞓ -10.9 million improved significantly compared to the same period last year at Ꞓ -31.6 million; With a consolidated result of Ꞓ -12.5 million (H1/23: Ꞓ -29.3 million), UBM significantly halved its loss compared to the first half of 2023. The earnings per share derived from the consolidated result improved from Ꞓ -4.34 in the first half of 2023 to Ꞓ -2.06 in the current reporting period.
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UBM Development is one of the leading developers of timber construction projects in Europe. The strategic focus is on green and smart building in metropolitan regions such as Vienna, Munich, Frankfurt or Prague. The platinum rating from EcoVadis and the prime status from ISS ESG confirm the consistent focus on sustainability. With over 150 years of experience, UBM offers all development services from a single source, from planning to marketing. The shares are listed in the Prime Market of the Vienna Stock Exchange, the segment with the highest transparency requirements.