UBM Development AG announced a pre‑tax profit of more than EUR 7 million for the first half of 2026, reversing a EUR 6 million loss recorded in the same period a year earlier. The swing represents an improvement of roughly EUR 13 million, or 217%, and coincides with a 36% year‑on‑year increase in revenue.
Equity at June‑end 2026 reached EUR 374 million, the highest level in three and a half years, aided by the half‑year result and a EUR 25 million Genussrecht capital raise in the first quarter. The equity ratio stood at 36.6%, above the company’s target range of 30%‑35%. Net debt declined to EUR 475 million from EUR 546 million a year earlier, a reduction of EUR 71 million, while the loan‑to‑value ratio was 46.5%. The price‑to‑book multiple was 0.43x and cash held was just under EUR 100 million after EUR 73 million of bond repayments in Q2.
Headcount fell to 188 employees, down from about 376 over the previous three years. Shares were up 1.18% at $17.10, trading within a 52‑week range of $16.50 to $24.50.
Asset disposals contributed EUR 21 million in cash. A partial sale of the Eckpfeiler Paket 6 leasehold rights in the Vienna area generated EUR 11 million (EUR 10 million in Q2 and EUR 1 million in Q3). A non‑strategic asset sale of a wholly owned property added EUR 10 million (EUR 5 million in Q3 2026 and EUR 5 million in Q1 2027). Both transactions were executed at or above book value. The company also flagged five hotel properties for sale, with negotiations slowed by market caution; at least one transaction is expected to close in 2026.
The strategic focus remains affordable housing. UBM identified more than 100,000 sqm of development potential across Vienna, Warsaw and Germany, including over 50,000 sqm of rentable area on six additional Vienna plots. A pilot project with PUUR Living in Vienna aims to keep operating costs between EUR 1.70 and EUR 1.90 per sqm per month, targeting housing costs at no more than 35% of net household income. The CFO presented a sample calculation with a net selling price of EUR 5,000 per sqm, monthly rent of EUR 15 per sqm, an institutional investor return of 4%, and a residual land price target of EUR 850 per sqm of residential floor area. Comparable calculations for 15 German and Austrian cities indicated land prices could range from EUR 1,641 to EUR 1,794 per sqm in Vienna.
Residential sales continued strong, with over 200 premium apartments sold in H1, including fully sold projects LeopoldQuartier C, Village im Dritten 11A and Na Příčné phase 1 in Prague, the latter seeing a price increase of at least 20% from launch. The order backlog exceeds 90 units, with a conversion expectation above 95%.
Market context highlighted undersupply in Vienna, where 77%‑80% of apartments are rented and rent growth averages 5% (projected 7% for 2026). Expected completions are under 10,000 units, far short of the 13,000‑15,000 needed. Germany faces a shortfall of roughly 1.4 million apartments, with annual deficits of 200,000 against an expected 185,000 completions in 2026. Warsaw rent levels exceed EUR 20 per sqm per month, and a further 50,000 sqm of development is planned near Poleczki Park. Office leasing cycles at Timber Peak in Mainz and Timber Pioneer in Frankfurt have extended to nine‑to‑twelve months.
CEO Thomas Winkler described the turnaround as solidifying, while CFO Patric Thate noted the equity ratio above target and net debt at its lowest level in years. Both executives emphasized that recent asset sales were executed at or above book value, providing an encouraging start for future transactions.
