Original-Research: UBM Development AG (von NuWays AG): Buy

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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

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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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