The Austrian real estate group UBM Development reports a decline in sales from EUR 183 million to EUR 127 million in the first nine months of 2020. While earnings before taxes rose from EUR 46.2 million to EUR 51 million, the bottom line was that the net profit fell from EUR 38.1 million to EUR 33.3 million. For each share in UBM Development, this translates into a drop in earnings from EUR 4.60 to EUR 3.63. “At more than 230 million euros, the cash reserves are even higher than before Corona, and equity is also at a high,” the company continued with regard to the nine-month figures. The company puts the value of the development pipeline at 2.2 billion euros, of which 50 percent is in the housing sector and 30 percent in the office sector.
“We develop sustainable and intelligent buildings that are also aesthetically pleasing,” says Thomas G. Winkler, CEO of UBM Development AG. With the new orientation, the company feels optimally prepared for future challenges: “Our figures show that the future has already begun, which in the current difficult environment are well above our own expectations,” said the manager.
In the first three quarters, earnings developed better than expected, according to the company where the COVID-19 pandemic left its mark on the figures. A fourth quarter is expected, however, which will be challenging – the measures against the pandemic are particularly noticeable in the area of UBM’s hotel leasing business.
“UBM currently assumes that the expected market environment will also open up opportunities for the company in return. In the next six months, it is to be expected that real estate projects of the competition will suffer more from the ongoing uncertainty and need a strong partner, ”said UBM. From 2022 this could have a positive effect on the numbers. However, due to the consequences of the pandemic, earnings are expected to decline in 2021.
Security data: UBM Development
Ticker symbol: 2U2
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