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

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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

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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

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