UBM Development AG

On record course with 30% earnings increase

Business news for the stock market

Vienna (pta008/29.11.2018/07:30) - - Earnings per share rise to EUR 3.66 in Q1-3 2018 (+30%)
- Strong financial position - flexibility for future investments in Q4
- Booming real estate market - no end to strong demand in sight
- Q1-3 confirm outlook for record year in 2018

Vienna, 29 November 2018 - UBM Development remains on record course after nine months: Earnings per share rose substantially by 30% year-on-year to EUR 3.66 in the first three quarters. The other fundamental parameters like Total Output (+26.5% to EUR 670m) and EBT (+15.8% to EUR 30.5m) also suggest that the full 2018 financial year will top the previous record results.

The financial position of UBM Development is stronger than ever before: The equity ratio equalled 37.3% and net debt amounted to EUR 329.7m at the end of the third quarter of 2018. "This very low debt level gives us the flexibility for new projects which will secure our future profitability today", commented Thomas G. Winkler, CEO of UBM Development. One major future investment was made at the beginning of October: With the purchase of a 23,000 m2 site at a top location in Vienna, where hotel and residential properties will be built, UBM has secured a follow-up project - with regard to both size and quality - for the Quartier Belvedere Central (QBC). Further investments are planned by the end of the year: "We want to invest EUR 150-200m in the acquisition of new projects during the fourth quarter alone. The demand in our core markets is unbroken", added Winkler.

Substantial increase in Total Output and earnings
Total Output rose by 26.5% to EUR 670.1m in the first three quarters of 2018, primarily as a result of the substantial growth in revenue from property sales. Particular highlights included the Leuchtenbergring project in Munich, the Twarda hotel project in Warsaw and "Der Rosenhügel" and QBC 6.1 residential projects in Vienna. EBT rose to EUR 35.4m in the first nine months and was 15.8% higher than the previous year. The improvement in net profit was even stronger with an increase of 27.9% to EUR 27.8m due to positive effects from deferred taxes. Earnings per share equalled EUR 3.66, compared with EUR 2.81 in the previous year.