UBM Development AG: Positive Outlook Amid Market Challenges

UBM Development AG has received an updated "Buy" recommendation from NuWays AG. The recommendation follows UBM's Q2 results, which showed a significant rise in total output, even as the real estate transaction market remains stagnant.

Total output in Q2 increased by 161% year-over-year to €164.1 million, primarily due to several key disposals, including a partial sale of the LeopoldQuartier Office project and property sales in Vienna and Madrid. This resulted in total net cash inflows of €75 million in H1, taking the total cash position to €179 million.

Q2 sales rose 13% year-over-year to €22.5 million, driven by residential projects and forward sales. UBM sold 97 units in H1, surpassing the total units sold in FY ’23. Q2 EBITDA improved to €1 million due to fewer negative fair value adjustments and reduced personnel costs.

Looking ahead, positive news is expected from the Timber Pioneer project in Frankfurt and an anticipated recovery in the residential market, driven by supply-demand imbalances. The shares remain a "Buy" with a target price of €27.