Original-Research: UBM Development AG (von NuWays AG): Buy

Classification of NuWays AG to UBM Development AG

Company Name:	UBM Development AG
ISIN:	AT0000815402
Reason for the research:	Update
Recommendation:	Buy
from:	30.10.2024
Target price:	EUR 27.00
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Muted Q3 ahead but successful financing and letting

Topic: UBM will release its Q3 report on 28th November. While we expect the company to have another muted quarter, UBM successfully placed a new green bond and let first parts of the LeopoldQuartier in Vienna.

Q3 sales are seen to come in at € 35.0m (eNuW). The main contributors are again expected to come from the construction progress on forward sold projects. Further, we expect another strong quarter with regards residential units sold. Here UBM already sold more units at H1 (97) than in FY ’23 (96). Yet, against the backdrop of a muted top-line, EBT looks again set to come in slightly negative at € -2.4m.

Successful bond placement. After the company announced a good exchange result for its new green bond (€ 74m; click here for update), UBM now announced the final result of the placement. With a volume of € 93m, nearly double the placement amount of 2023, the company was able to further smoothen its maturity profile. With the issued volume, more than 80% of UBM’s bond financing now has a sustainable focus in accordance with the company’s green. smart. and more. strategy. The new green bond has a five-year term until 2029e and an annual coupon of 7%. Management intends to use the net issue proceeds for refinancing as well as for new and existing suitable green projects.

Letting success in Vienna. UBM recently let first parts of the LeopoldQuartier, the first and largest timber construction quarter in Europe. In detail, with the company rented large parts of the upper three floors (2.8k sqm) to Your Office – Managed Business Service GmbH, an operator of flexible office space, as well as the c. 1.2k sqm retail space on the ground floor to Spar AG. With this, UBM in a first step let c. 16% of the total floor space of 25.4k sqm. In addition, Best in Parking Garagen GmbH & Co. KG will operate the 127 parking spaces in the building. In our view, this is a very good sign that the company can record successes in the office market despite difficult waters. On top, talks with further prospective tenants are at an advanced stage.

We remain convinced of UBM’s prospects in the field of smart and sustainable real estate solutions, especially as ESG requirements are being tightened and investors get increasingly under pressure to comply with the EU taxonomy.

Reiterate BUY with an unchanged € 27 PT based on DDM.

You can download the research here: http://www.more-ir.de/d/31151.pdf
For additional information visit our website: www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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