UBM Development (UBS) Q3 2024 earnings summary

Executive summary

• Residential sales surged, with Q3 sales tripling year-over-year and nearly 300 apartments sold by September 2024; residential exposure now at 60% and a pipeline of 3,000 units focused on timber and Germany.

• ESG leadership reaffirmed with top ISS rating, prime status, and 80% of bond financing sustainability-linked; successful issuance of a second green bond.

• Cash management prioritized amid market headwinds, maintaining liquidity above €150m and executing a €93m green bond issue.

• 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 debt reduced to below €589m from €610m at year-end 2023; equity ratio at 30.2%.

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

Outlook and guidance

• 2024 loss expected to be half of 2023, with liquidity protection prioritized and over 400 apartment sales targeted for the full year.

• Return to profitability projected for H2 2025, driven by indexation effects, project sales, and rising office rents.

• Market reorganization expected to benefit remaining participants from 2026.