UBM Development AG

UBM on course in Q1 2019 - Solid earnings and good prospects for the future

Business news for the stock market

Vienna (pta007/28.05.2019/07:30) - - Earnings before tax of EUR7.9m and net profit of EUR5.9m
- Strong balance sheet and further optimisation of the financing structure
- Good progress on current sales activities
- Well-filled pipeline of EUR1.8 bn and tailwinds in all asset classes
- Outlook for 2019 at record prior year level

Vienna, 28 May 2019 - UBM Development guided for a slow start in 2019, but is still delivering solid results for the first quarter: Despite the absence of project completions or hand-overs during the reporting period, earnings before tax were only slightly lower than the previous year at EUR7.9m. Net profit amounted to EUR5.9m for the first three months. The balance sheet remained strong with an equity ratio of 35% and a loan-to-value ratio of only 37% as of 31 March 2019. The financing structure is currently undergoing further optimisation through the tapping of the 3.125% corporate bond (2018-2023) by EUR45m to a volume of EUR120m in total. This solid balance sheet creates an important competitive advantage over other developers who cannot obtain capital market refinancing at similar conditions.

"The tailwinds in our markets are continuing. A full pipeline and a strong balance sheet represent the perfect mix to also deliver attractive earnings in the future", commented CEO Thomas G. Winkler. Based on the good progress of sales activities - trade sales as well as forward sales - UBM is optimistic that the record results in 2018 can be repeated in 2019, also without spectacular completions.

Solid earnings
UBM generated Total Output of EUR71.6m in the first quarter of 2019, compared with EUR219.9m in the first three months of 2018. The year-on-year decline in Total Output resulted primarily from the strong sales performance at the end of 2018, while the turn of the year 2017/2018 brought the postponement of several transactions into the following year, i.e. into the first quarter of 2018. Total Output for the reporting period was influenced primarily by the progress of construction on real estate projects. A major part came from two projects: Holiday Inn Gdansk City Centre and "immergrün" residential project in Berlin. EBT totalled EUR7.9m and was only EUR0.3m below the comparable prior year level of EUR8.2m. Profit for the period (net profit after tax) totalled EUR5.9m and was EUR0.5m lower than the EUR6.4m recorded in the first quarter of 2018.