BUCHAREST, Romania, Aug. 28,
2024 /PRNewswire/ -- One United Properties (BVB:
ONE), Romania's leading green
developer of residential, mixed-use, and office real estate,
recorded a 10% increase in the profitability of the company's key
segments, which comprise the net income from residential properties
and net rental income, while consolidated revenues reached
EUR 140.6 million in the first half
of 2024. Gross profit stood at EUR 53.2
million, while net profit reached EUR
46 million.
"The combined 10% increase in profitability of our two core
segments, to 49.1 million euros,
underscores the strength and resilience of our business model,
based on performant residential and office divisions. The
dedication of our sales and leasing teams has been crucial to our
solid results, which will be reflected in future revenue and net
profits in line with our revenue recognition policy. Despite
industry challenges, our commitment to offering the highest quality
residential and office spaces remains our winning strategy,
enabling us to maintain strong financial stability and a positive
outlook," said Victor Căpitanu, Co-CEO of One United
Properties.
Revenue from the residential segment reached EUR 105.4 million, a 14% YoY decrease. However,
net income from residential properties increased by 6% YoY to
EUR 38.3 million. This growth was
driven by the new developments initiated between 2022 and the first
half of 2024, where significant construction progress paired with
strong sales and pre-sales of residential units led to improved
results. Notably, the net margin from residential sales rose from
29.5% in H1 2023 to 36.3% in H1 2024, reflecting the impact of
ongoing construction progress.
Rental income, which includes revenue from the commercial
division and tenant services, increased by 18% YoY to EUR 15.1 million in H1 2024. Net rental income
saw a 25% YoY rise, reaching EUR 10.8
million. In the first half of 2024, One United Properties
successfully leased and pre-leased 8,100 square meters of office
space and signed multiple contract extensions totaling 6,770 square
meters. The financial impact of these new leases will be reflected
in future revenues.
"The first half of 2024 marked a high level of activity for
One United Properties as we expanded our iconic One Community and
advanced our construction projects. With 12 developments underway,
including the transformative One Athénée and One Gallery developments, our work will leave a
lasting impact on the city of Bucharest. While the market presents
challenges, the scale of our operations is unparalleled, and we are
confident that the results of this immense effort will be evident
in our financial performance in the coming quarters as we begin
delivering high-quality residential units and office spaces to our
customers," said Andrei
Diaconescu, Co-CEO of One United Properties.
As of June 30, 2024, One United
Properties had 12 developments under construction, encompassing
4,041 residential and commercial units and nearly 45,000 square
meters of office and commercial space. Despite significant
development activity, which led to a 20% decline in the cash
position, the Group maintained a solid cash reserve of EUR 67.5 million. Notably, as of the end of H1
2024, the loan-to-value ratio stood at 30%, a 2 percentage-point
increase since the end of 2023. Net debt remained low at
EUR 170.5 million, representing 16%
of total assets.
Amounts to be received under contracts concluded with customers
as of June 30th, 2024, will total
331 million euros in additional cash
by 2026.
ONE UNITED PROPERTIES (BVB: ONE) is the leading
green investor and developer of residential, mixed-use, and
commercial real estate in Bucharest,
Romania. One United Properties is an innovative company
dedicated to accelerating the adoption of construction practices
for safe, energy-efficient, sustainable, and healthy buildings, and
has received numerous awards and recognitions for its superior
sustainability, energy efficiency, and wellness. The company is
publicly traded on the Bucharest Stock Exchange, and its shares are
included in multiple indices such as BET, STOXX, MSCI, FTSE, ROTX
and CEEplus.
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