Half Year 2026 UBM Development AG Earnings Call Transcript
Key Points
- UBM Development AG (WBO:UBS) reported a significant earnings swing from a loss of EUR6 million to a profit before tax of over EUR7 million in H1 2026, with revenue up 36%.
- Residential sales continued to boom, with over 200 premium apartments sold, matching last year's record level, and projects like LeopoldQuartier C and Na PÅÃÄné phase 1 are sold out.
- The company is making good progress in affordable housing, a major strategic initiative, with a pilot project in Vienna and over 50,000 square meters of rentable area identified for this segment.
- Strategic asset sales have started successfully, with first assets sold at or above book value, generating around EUR21 million in cash inflow.
- The equity ratio improved to 36.6%, above the target range of 30%-35%, and net debt decreased to below EUR475 million, the lowest level in years.
- The affordable housing model is validated across multiple markets, with land price benchmarks achievable in 15 cities in Germany and Austria, not just Vienna.
- The company has identified a potential of over 100,000 square meters of affordable living in its existing portfolio, including in Warsaw and Vienna.
- The company did not provide specific guidance for the second half of 2026 due to market volatility, making future performance uncertain.
- The German market remains challenging, with slow sales progress in projects like Mainzer Hafen and a pessimistic mood affecting buyer sentiment.
- Hotel asset sales are progressing slower than expected, with no guarantee of closing any deals in 2026 due to cautious hospitality business plans.
- Construction activity is currently low, leading to reduced material costs, but this also means less investment in new projects, with a pick-up not expected until 2027-2028.
- The company has had to reduce its workforce significantly over the past three years, halving employee numbers, which is a difficult process and may impact morale.
- Office leasing in Germany, particularly in Frankfurt, is slow, with interest taking 9-12 months to materialize into signed contracts.
- The affordable housing initiative is not yet ready to build immediately, and the company is still investigating potential plots in Germany, with no immediate projects.
Hello, and a warm welcome to todayâs earnings call of the UBM Development AG, following the publication of the H1 figures of 2026. We are delighted to welcome the CEO, Thomas Winkler, and the CFO, Patric Thate, who will speak in a moment and guide us through the presentation and the results.
After the presentation, we will move on to an analystsâ Q&A session. As an institutional investor, we would like to invite you to contact UBM Development AG directly after the earnings call to clarify any questions you may have. Mr. Winkler, please, the stage is yours.
Thank you, Mareike, and welcome everybody. Thank you for joining UBMâs conference call on the first half of 2026 with what I would say a fair number of highlights that deserve the name highlight.
Looking at slide 1 of our presentation, what did we achieve? Our turnaround has solidified, and we are able to report a significant earnings swing before and after tax. Second, the boom in residential
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
