Austrian real estate development UBM Development released figures for the first quarter of 2020 on Tuesday. Total revenues of EUR 86.3 million are reported after EUR 71.6 million in the same period of the previous year, while sales increased from EUR 36.0 million to EUR 41.3 million. Before taxes, UBM Development was able to increase the quarterly profit from EUR 7.9 million to EUR 39.3 million and net from EUR 5.9 million to EUR 22.9 million. “By quadrupling the profit, we are showing the potential that UBM has,” says Thomas G. Winkler, CEO of UBM Development AG.
“The impact of the Corona crisis on the hotel business as well as, to a lesser extent, rent losses are only visible in the income statement over the course of the year. The influence of the pandemic on the valuations in the balance sheet can only be determined with more clarity about the parameters, ”says the group.
The company does not provide a concrete forecast for 2020, but expects a significant drop in profits compared to 2019. UBM said that pandemic effects will still appear in 2021. “At the moment we can only drive on sight. Basically, a developer can always make money – in the boom through top prices when selling, in the crisis through cheap prices when getting started. Now it is a matter of managing the transition as optimally as possible, ”says Winkler.
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