Business news for the stock market

UBM Development AG: Q1 influenced by successful rental in Frankfurt and the capital market

Wien (pta007/25.05.2023/07:00 UTC+2)

  • Frankfurt's first timber-hybrid office building two-thirds let
  • 265,400 square metres of timber projects in the development pipeline
  • Early repayment of the hybrid bond 2018
  • €1.10 dividend approved by the 142nd annual general meeting

Vienna, 25.05.2023 – The first quarter was weak for UBM – as previously announced. The buyers' strike continues, which means the transaction market has now remained closed to UBM for three consecutive quarters. However, there are definite rays of hope. In March, Universal Investment signed a lease for nearly 10,000 square metres of office space in the Timber Pioneer, Frankfurt's first office building in timber-hybrid construction. This take-up was the largest in Frankfurt during the first quarter, and that in a city with vacancies of more than a million square metres. "This transaction proves that our products are still in demand and we are right on course with our strategy to focus on timber construction projects," explained UBM CEO Thomas G. Winkler.

Over a quarter of a million square meters in timber

UBM is currently developing more than a quarter of a million square metres in timber, to be exact 265,400 square metres, slightly more than half in the office asset class and the rest in residential. The company's goal is to become the leading developer of timber construction projects in Europe. This uncompromising focus on timber construction is a logical consequence of the green. smart. and more. corporate strategy. The projects are located for the most part (90%) in Germany and Austria.

Solid financial position and green finance framework

As of 31 March 2023, UBM had over €250m of liquid funds and an equity ratio of 31.6%. The hybrid bond 2018 (€52.9m) was repaid prematurely during the reporting period from a position of financial strength. This solid financial foundation creates a good basis in the current environment. The issue of two sustainability-linked bonds for a quarter of a billion Euros in total during 2021 made the Green Finance Framework a further building block in the implementation of UBM's strategy. This framework applies to the issue of green financing instruments whose net proceeds are used solely for the financing and/or refinancing of green projects with clear environmental benefits.

Dividend approved

The 142nd annual general meeting on 19 May 2023 approved a dividend of €1.10 per share for the 2022 financial year. That again makes UBM one of the top dividend payers on the Vienna Stock Exchange and sends a clear signal to the capital market. "We are well positioned for the future," emphasised Thomas G. Winkler.


Properties like the ones developed by UBM will also be in demand in the future. The market developments remain volatile and difficult to estimate. For this reason, UBM must refrain from issuing any guidance and limit comments to its solid financial position and healthy equity ratio.


Emitter: UBM Development AG
Laaer-Berg-Straße 43
1100 Wien
Contact Person: Christoph Rainer
Phone: +43 664 80 1873 200
ISIN(s): AT0000815402 (Share) AT0000A1XBU6 (Bond) AT0000A23ST9 (Bond) AT0000A2AX04 (Bond) AT0000A2QS11 (Bond) XS1785474294 (Bond) XS2355161956 (Bond)
Stock Exchange(s): Vienna Stock Exchange (Official Trade); Free Market in Frankfurt (Scale)