UBM Development (UBS) Q3 2024 earnings summary

Executive summary

• Residential sales surged, more than tripling year-over-year with nearly 300 apartments sold by September 2024 and a strong pipeline focused on timber and Germany; residential exposure now at 60%.

• ESG leadership reaffirmed with top ISS rating, EcoVadis platinum status, and 80% of bond financing sustainability-linked.

• Cash management prioritized amid market headwinds, maintaining liquidity above €143m and executing a successful €93m green bond issue.

• Office segment remains subdued, with slow leasing progress and market uncertainty due to recession and remote work trends.

• Losses halved in 2024 compared to 2023, with a return to profitability targeted for H2 2025.

Financial highlights

• Total output for Q1-3 2024 rose 76% year-over-year to €319.4m; revenue stable at €63.4m.

• Negative EBT of €-14.5m for Q1-3 2024, improved from €-17.4m year-over-year.

• Net result at €-15.7m for Q1-3 2024, EPS at €-2.67.

• Net debt reduced to €588.8m from €610.2m at year-end 2023; equity ratio at 30.2%.

• Cash and cash equivalents at €143m as of Q3 2024.

Outlook and guidance

• Year-on-year loss expected to be halved in 2024, with liquidity protection prioritized.

• Return to profitability anticipated in H2 2025, driven by indexation effects, planned asset sales, and housing supply gap.

• Over 400 apartment sales targeted for the full year 2024.

• Market reorganization expected to benefit remaining participants from 2026.

• No significant hotel segment contribution expected in 2025.