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UBM Development AG: Major acquisition and strong balance sheet highlight unspectacular Q1
Wien (pta006/25.05.2022/07:00 UTC+2)
- Development package in Mainz Zollhafen with 42,000 m² of gross floor space
- Crisis-proof balance sheet: half a billion in equity, over €370m in cash
- €2.25 record dividend approved by the 141st Annual General Meeting
- ESG Rating: leadership expanded in UBM's universe
Vienna, 25 May 2022 – At UBM Development AG, the first quarter of 2022 was highlighted by a major acquisition in Germany which covered four construction sites in the Mainz Zollhafen with more than 42,000 m² of gross floor space. Plans call for the construction of housing and commercial/office facilities in a ratio of 75% to 25% at this waterfront location. "The step-by-step realisation of these four development projects is expected to generate more than €300m of sales proceeds," explained UBM CEO Thomas G. Winkler. UBM produced unspectacular performance during the first quarter in addition to this acquisition but, in contrast to the past two years, there were no special effects in 2022. Net profit totalled approximately €5m in the first quarter and generally reflected the level in 2019 – which, all in all, did turn into UBM's record year.
Strong balance sheet for market uncertainty
UBM had cash and cash equivalents of more than €370m at the end of the first quarter despite this large-scale acquisition. With over half a billion in equity and an equity ratio of 35.6%, the company is optimally positioned to deal with the uncertainty in the current environment. "UBM demonstrated its success in managing market uncertainty during the past two years of the COVID-19 pandemic," added CFO Patric Thate: "Our financial strength is a key competitive advantage, and this capital allows us to react very quickly to market opportunities."
Record dividend approved
The 141st annual General Meeting on 16 May 2022 approved a record dividend of €2.25 per share. That underscores UBM's standing as one of the top dividend payers on the Vienna Stock Exchange and sends a clear signal to the capital market. "We are in a perfect position to take advantage of market opportunities and optimally equipped for the future," added Thomas G. Winkler.
ESG leader in Germany and Austria
In view of the pandemic and the war in Ukraine, a valid question asked by many concerned individuals is whether the focus on sustainability has not been pushed into the background. UBM is convinced that the current situation will definitely reinforce this focus. The company's ESG score with the ISS ESG rating agency has improved and, with a B- rating, UBM has further expanded leadership in Germany and Austria in its branch of business.
Outlook
UBM has decided to refrain from issuing any guidance at the present time due to the current uncertain market development and refers to its extremely solid financial position, especially compared with most of the competition, and the potentially attractive opportunities.
Key performance indicators Q1 2022 (in €m)
| Key earnings figures | Q1 2022 | Q1 2021 | Change |
| Total Output1 | 80.6 | 89.6 | -10.0% |
| Revenue | 30.6 | 41.9 | -27.0% |
| EBT | 5.3 | 16.1 | -67.1% |
| Net profit | 4.8 | 11.7 | -59.0% |
| Key asset and financial figures | 31.3.2022 | 31.03.2021 | Change |
| Total assets | 1,555.3 | 1,435.5 | 8.3% |
| Equity | 552.8 | 490.9 | 12.6% |
| Equity ratio (in %) | 35.6% | 34.2% | 1.4PP |
| Net debt2 | 472.9 | 523.9 | -9.7% |
| Cash and cash equivalents | 378.2 | 254.2 | 48.8% |
| Key share data and staff | 31.3.2022 | 31.3.2021 | Change |
| Earnings per share (in €)3 | 0.32 | 1.20 | -73.3% |
| Market capitalisation | 307.9 | 283.2 | 8.7% |
| Dividend per share (in €)4 | 2.25 | 2.20 | 2.3% |
| Staff | 369 | 338 | 9.2% |
1 Total Output corresponds to the revenue generated by fully consolidated companies and companies consolidated at equity as well as the sale proceeds from share deals in proportion to the stake held by UBM.
2 Net debt equals current and non-current bonds and financial liabilities, excluding leasing liabilities, minus cash and cash equivalents.
3 Earnings per share after the deduction of hybrid capital interest (change in calculation method beginning in 2020); values based on Q1.
4 The dividend is paid in the respective financial year but is based on profit for the previous financial year.
UBM Development develops real estate for Europe's metropolitan areas. The strategic focus is on green building and smart office in major cities such as Vienna, Munich, Frankfurt and Prague. Ratings that include Gold from EcoVadis and Prime Status from ISS ESG confirm the consequent focus on sustainability. With close to 150 years of experience, UBM offers all development services from a single source, from planning to marketing. The shares are listed on the Prime Market of the Vienna Stock Exchange, the segment with the highest transparency requirements.
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| Emitter: |
UBM Development AG Laaer-Berg-Straße 43 1100 Wien Austria |
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|---|---|---|
| Contact Person: | Christoph Rainer | |
| Phone: | +43 664 80 1873 200 | |
| E-Mail: | investor.relations@ubm-development.com | |
| Website: | www.ubm-development.com | |
| ISIN(s): | AT0000815402 (Share) AT0000A1XBU6 (Bond) AT0000A23ST9 (Bond) AT0000A2AX04 (Bond) AT0000A2QS11 (Bond) XS1785474294 (Bond) XS2355161956 (Bond) | |
| Stock Exchange(s): | Vienna Stock Exchange (Official Trade); Free Market in Frankfurt (Scale) |