Märkte & Kurse

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Original-Research: UBM Development AG - from NuWays AG

17.10.2024 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
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Classification of NuWays AG to UBM Development AG

     Company Name:                UBM Development AG
     ISIN:                        AT0000815402

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        17.10.2024
     Target price:                EUR 27.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Philipp Sennewald

Good exchange result for new green bond

Topic: UBM recently announced the planned issue of a further green bond with
a volume of up to EUR 100m (possible increase to EUR 150m) with a five-year term
and an annual coupon of 7%. Until 15 October, the company provided an
exchange offer to the holders of the UBM Bond 2019-2025 (2.175% coupon / EUR
120m) and the UBM Bond 2021-2026 (3.125% coupon / EUR 150m). In detail:

Yesterday, UBM announced the results of the exchange offer for the new green
bond, as a nominal amount of EUR 73.6m, representing c. 25% of the holders of
both the '19-'25 and '21-'26 bonds, was exchanged. In our view, this clearly
underpins investors' trust in the company's prospects going forward. The
re-offer price was set at 100% of the nominal amount.

In addition to the exchange offer, new investors will be able to subscribe
to the new green bond in the period from 16 October to 22 October in the way
of a private placement. While we expect the company to reach the targeted EUR
100m, we do not yet include this in our estimates and wait for the end of
the offer period. The planned value date is 29 October.

Overall, the issuance will further strengthen UBM's solid financial position
with an equity ratio of > 30%, an LTV of 46% and liquid funds of EUR 180m as
of H1. Moreover, UBM has no relevant maturities until the '19-'25 bond (c. EUR
90m remaining nominal) expires in November '25e.

Management intends to use the net issue proceeds for refinancing as well as
the financing of new or existing suitable green projects, which are in
accordance with the company's Green Finance Framework. Mind you, that UBM is
one of the leading developers of timber-hybrid construction in Europe with
currently more than 300k sqm in the pipeline (total pipeline: EUR 1.9bn pro
rate over 4 years), including the tallest timber-hybrid tower in the world,
the Timber Marina Tower. Given the cost advantages in connection with the
modular and serial construction as well as the significantly reduced carbon
emissions, we expect UBM's projects to meet brisk demand once the market
fully reopens, as investors are under pressure to comply with the EU
taxonomy.

Reiterate BUY with an unchanged EUR 27 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/31071.pdf
For additional information visit our website: www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2010095 17.10.2024 CET/CEST

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