UBM Development AG: Resilient Residential Growth Amid Top-Line Challenges

UBM Development AG recently announced its Q3 results, highlighting steady progress in the residential sector. The total output increased by 7.2% year-on-year to €70.3 million, driven by property share sales and construction advancements on previously sold projects. A significant rise in residential units sold was noted, with an increase to 186 units during the quarter, totaling 283 for the first nine months, with a target of 400 units for the full year.

However, Q3 sales dropped by 18% year-on-year to €20.5 million, falling short of expectations due to lower sales realization from the total output. Despite this, management is optimistic about FY25, particularly with the planned disposal of the LeopoldQuartier Office in Vienna.

EBITDA improved to €0.3 million, aided by positive portfolio changes. The company's sustainability focus aligns well with regulatory demands, fostering future demand. The recommendation remains a 'Buy', with a target price of €27.