Original-Research: UBM Development AG - from NuWays AG 30.10.2024 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.

Original-Research: UBM Development AG - from NuWays AG

30.10.2024 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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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 EUR 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 EUR -2.4m.

Successful bond placement. After the company announced a good exchange
result for its new green bond (EUR 74m; click here for update), UBM now
announced the final result of the placement. With a volume of EUR 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 EUR 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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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2018635 30.10.2024 CET/CEST