UBM Development (UBS) Q2 2024 earnings summary

Executive summary

• Liquidity increased to EUR 179 million as of 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 non-strategic asset sales completed by mid-year, supporting cash position.

• Net debt reduced to EUR 550 million and equity ratio stable at 30.4%.

• Focus remains on liquidity for 2024, with a return to profitability targeted for 2025.

Financial highlights

• Total output rose 114% to EUR 249.1 million and revenue increased 13% to EUR 42.9 million in H1 2024.

• Net loss before non-controlling interests improved to EUR -12.5 million from EUR -29.3 million year-over-year.

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

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

• Net debt reduced by 10% to EUR 550 million.

Outlook and guidance

• Expects significant year-over-year loss reduction in 2024, with liquidity protection prioritized.

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

• 2026: Further improvement expected from rent increases and cost efficiency.

• Confident in continued strong demand and full prices for nearly 3,000 apartments in the pipeline.