UBM Development AG achieved a positive result both before and after tax in the first half of the year. This represents a noticeable earnings improvement of over EUR 13 million compared to the previous year. Turnover increased by more than 36 percent to EUR 81.2 million, primarily due to ongoing residential property sales, which were at the level of the record half-year 2025. The equity ratio stands at 36.6 percent, exceeding the target corridor of 30 to 35 percent. At the same time, net debt was reduced to EUR 475 million, marking the lowest level since 31 March 2022. UBM's CEO, Thomas G. Winkler, stated that the turnaround was reflected in the figures and the first half-year confirmed the company's chosen path.
Focus on Affordable Housing and Portfolio Rebalancing
A central aspect of the company's strategy is the development of affordable housing. UBM Development is pursuing an innovative approach by utilising prefabricated elements from the factory. This method is expected to reduce construction time by 30 percent compared to conventional building methods. The first pilot project in this segment is being built in Viktor-Kaplan-Straße in Vienna and comprises 92 residential units. Operating costs per square metre of usable living space are to be reduced to below EUR 2 through the use of renewable energies, such as heat pumps and balcony power plants for each unit. Given the forecast that fewer than 2,300 privately financed flats will be completed in Vienna in 2026, UBM is responding to an anticipated increase in demand in the market for available rental flats with this offering.
To free up further financial resources for the implementation of its affordable housing strategy, UBM is accelerating the sale of existing properties and non-strategic assets. Since the announcement of the portfolio rebalancing in the first quarter, initial sales have already been successfully completed at or above book value. A package of building rights in the greater Vienna area was sold for approximately EUR 34.8 million. In addition, a non-strategic property in Styria was sold for EUR 10 million. These two transactions generated over EUR 20 million in liquid funds.
The company's outlook highlights the scarcity of future housing supply, caused by low levels of permits and completions. Particularly in the affordable housing segment, UBM anticipates above-average demand for several years. The operational focus for the coming quarters therefore remains on portfolio rebalancing and building a project pipeline for affordable housing.
Detailed Half-Year Financial Figures
- —Total output reached EUR 179.9 million in the first half-year, an increase of 28.2 percent compared to the same period last year.
- —Earnings before tax (EBT) improved significantly to EUR 7.3 million, in contrast to a loss of -EUR 5.8 million in the first half of 2025.
- —Earnings after tax also turned positive from -EUR 6.6 million, reaching EUR 6.2 million.
- —Equity increased by 6.7 percent to EUR 373.9 million, while net debt was reduced by 10 percent to EUR 474.6 million. Liquid funds decreased to EUR 84.4 million due to the repayment of bonds, promissory note loans and financial liabilities.
