One United Properties posts profit of 42 million Euro in Q1 2022

One United Properties recorded a consolidated turnover of 70.5 million Euro in the first three months of 2022, an 81 percent increase compared to Q1 2021. The gross profit increased almost fourfold in Q1 2022 compared to Q1 2021, reaching 42 million euro.

“Romanian real estate market continued its strong performance well into 2022, and we see a growing demand for our developments. The rising inflation and negative real interest rates on deposits drive savings into real estate, despite the current geopolitical context. In this effervescent market, One United Properties maintains its leading position as we close the first quarter of 2022 with historical results both in terms of the top line as well as the bottom line. The net margin from residential sales appreciated 17 percentage points compared to Q1 2021 due to strong cost-control based on secured contracts and an established forward buying policy, while our recurring rental income registered an 11-fold increase in the context of growing office and retail division. As Bucharest continues to show extraordinary development potential, we continue building a strong pipeline for our future landmark developments,” said Victor Capitanu, co-CEO at One United Properties.   

The doubling of the turnover was driven by a 17 percent increase in the revenues from the development and sales of residential property, which reached 39.9 million Euro in Q1 2022. The net income from residential sales amounted to 16.9 million Euro, generating a 42.5 percent margin, 17 percentage points appreciation compared to Q1 2021. In the first three months of 2022, One United Properties sold and pre-sold 120 apartments with a total surface of 9,811 sqm, 129 parking spaces and 10 commercial spaces and other units for 28.6 million euro.

“2022 brings diversification to One United Properties as we continue to develop our office and retail divisions, both of which brought notable returns in the first three months of the year and will continue to grow throughout the year. In parallel, we continue our focus on expanding the ONE high-end brand into larger-scale medium to medium-high income developments. The sustained, excellent sales results of One Cotroceni Park set good premises for similar developments such as One Lake District and One High District, where we will kick off the construction this year. Our solid performance directly results from our strong business model, based on a superior quality product, and never compromising on what and how we develop, always striving to deliver the best product on the market,” said Andrei Diaconescu, co-CEO of One United Properties.

As of March 31, 2022, One United Properties had 173,000 sqm of land plots for further residential development under permitting and in the planning phase, most with an estimated start of construction in 2022, in Bucharest and Constanta (Mamaia). The Group estimates the construction of more than 4,200 apartments and commercial spaces on these land plots.

One United Properties is currently in advanced negotiations for 10 future developments as well as it is in early discussion or negotiation stages for more than 20 other developments. The 10 developments currently in advanced negotiations are primarily focused on medium and medium-high income residential properties.