UBM Development: Double buy recommendation for the share

UBM sells the FAZ Tower to HanseMerkur. This is a forward sale. The sales price is 196 million euros. The analysts at SRC Research call the sales price very attractive.

The skyscraper in Frankfurt’s Europaviertel has 18 floors, and the office space is around 25,000 square meters. Completion is scheduled for the third quarter of 2022. The FAZ has signed a 15-year lease for the house.

A timber construction office with eight floors is to be built next to the FAZ Tower. A building permit may be issued for this in the first half of 2021. A forward sale could take place in the second half of 2021.

The analysts are not making any changes to their earnings estimates. The increased focus of UBM on smart and green building solutions in the office sector is a good way for the experts.

You confirm the buy recommendation for the shares of UBM. The price target increases from 45.00 euros to 47.00 euros.

The analysts from Baader also confirm the buy recommendation for the shares of UBM after the Frankfurt announcement. The price target here is EUR 41.00.

On November 26th, UBM will have the figures for the third quarter. For the current year, the experts are expecting earnings per share of EUR 3.48. The forecast for 2021 is 3.42 euros, in 2022 it should be 5.27 euros.

UBM shares gain 0.3 percent to 34.00 euros.


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