UBM Development (UBS) Q2 2024 earnings summary

Executive summary

• Liquidity increased to EUR 179 million by June 30, 2024, up over EUR 50 million from Q1 and above year-end 2023 levels.

• Loss for H1 2024 was halved year-over-year, with pre-tax loss at EUR 10.9 million and net loss at EUR 12.5 million.

• EUR 75 million in cash generated from non-strategic asset sales, including the sale of an 80% stake in W3 Center Wien Mitte.

• Residential unit sales in H1 2024 exceeded total sales for all of 2023, indicating a strengthening market.

• Solid balance sheet maintained with equity ratio stable at 30.4% and net debt reduced to EUR 550 million.

Financial highlights

• Total output rose 114% to EUR 249.1 million; revenue up 13% to EUR 42.9 million compared to H1 2023.

• Net debt reduced by nearly 10% since December 31, 2023, now at EUR 550 million.

• Earnings per share improved to EUR -2.06 from EUR -4.34 year-over-year.

• Cash and cash equivalents increased 18% to EUR 179.4 million since year-end 2023.

• EBITDA at EUR -1.2 million, a significant improvement from EUR -24.9 million in H1 2023.

Outlook and guidance

• 2024: Focus remains on loss reduction and liquidity, with a soft Q3 expected.

• Return to profitability anticipated in 2025, supported by indexation effects and market reorganization.

• Liquidity remains the top priority over profitability for 2024.

• Further improvement possible in 2026, with survivors expected to benefit from rent increases and cost efficiency.