One United Properties reports a net profit of 228.6 million RON, down 20 percent in the first semester

One United Properties reports consolidated turnover of 699.4 million RON (down 17 percent) and gross profit of 264.5 million RON in the first six months of 2024, and net profit reached 228.6 million RON. The net profit registered a 20 percent decrease compared to the similar period in 2023, according to the report sent to the Bucharest Stock Exchange.

The profitability of the company’s key segments, which sums up net residential property income and net rental income, rose 11 percent compared to the same period last year, according to the company.

“The combined 11 percent increase in profitability in our two main segments, up to 244 million RON, underlines the strength and resilience of our business model, based on high-performing residential and office divisions. The dedication of our sales and leasing teams has been critical to achieving such strong results, which will be reflected in future revenues and net profits in line with our revenue recognition policy. Despite the challenges in the industry, our commitment to providing the best quality residential and office spaces remains the winning strategy, which allows us to maintain strong financial stability and a positive outlook,” said Victor Căpitanu, co- CEO of One United Properties.

Revenues from the residential segment reached 524.1 million RON in the first half of the year, a decrease of 13 percent compared to the previous year. However, the net income from residential properties increased by 7 percent, reaching 190.4 million RON. This growth was driven by new developments initiated between 2022 and the first half of 2024, where the significant progress of construction work together with significant sales and pre-sales of residential units led to improved results. Net margin on residential sales increased from 29.5 percent in H1 2023 to 36.3 percent in H1 2024, reflecting the impact of ongoing construction.

Rental income, which includes income from the commercial division and tenant services, increased by 19 percent to 75 million RON in H1 2024. Net rental income increased by 26 percent to 53.6 million of lions. In the first half of 2024, One United Properties has successfully leased and pre-leased 8,100 square meters of office space and signed several 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 successfully expanded the One community and advanced our projects under construction. With 12 developments underway, including the One Athénée and One Gallery restoration projects, our work will have a long-term positive impact on the city of Bucharest. Although the market presents challenges, the scale of our operations is unparalleled, and we are confident that the results of this huge effort will be reflected in our financial performance in the coming quarters as we begin to deliver further new residential units and office space to our clients. high quality”, said Andrei Diaconescu, co-CEO of One United Properties.

As of June 30, 2024, One United Properties had 12 developments under construction comprising 4,041 residential and commercial units and nearly 45,000 square feet of office and commercial space. Despite the significant development activity, which resulted in a 20 percent decrease in the cash position, the Group maintained a solid cash reserve of 336.1 million RON. It is noteworthy that at the end of the first half of 2024, the loan-to-value ratio stood at 30 percent, an increase of 2 percentage points from the end of 2023. Net debt remained at a low level of 848.5 million RON, representing 16 percent of total assets.

The sums to be collected based on the contracts concluded with customers on June 30, 2024, will total 331 million euros in additional cash until 2026, the release also states.